Home Electrification Accelerator Program FAQ

Heat Pump Water Heaters (HPWHs) use electricity to move heat from one place to another instead of generating heat directly like traditional gas and electric resistance water heaters, making them the most energy-efficient water heaters on the market (3-4 times more efficient than gas water heaters). HPWHs can also be programmed and controlled remotely to heat water when power from the grid is cleaner and cheaper, saving you money. 

When you switch from a gas water heater to a HPWH, you can reduce your home’s carbon footprint by approximately 50%. HPWHs are also safer and healthier; unlike gas water heaters, HPWHs don’t require an open flame and combustion, removing a major potential source of indoor air pollution from your home.

Any community member who lives at a residence served by SBCE and has an account in good standing is eligible to apply for the Home Electrification Accelerator Program (HEAP). Each SBCE account is eligible for one rebate offered under this program per fiscal year.

View Program Guidelines and Terms & Conditions

Rebates are currently available for:

• Heat pump water heaters (HPWHs):
• Associated electrical work, including pre-wiring or upgrades required during HPWH installation.

Rebate levels vary:

• HPWHs:
  • $500 (base rebate) or $1,000 (income-qualified rebate) for replacing electric resistance water heaters.
  • $2,500 (base rebate) or $3,500 (income-qualified rebate) for replacing gas or propane water heaters.
• Associated Electrical Work: 
  • Up to $2,000 (base rebate) or up to $4,000 (income-qualified rebate).

Yes, HEAP is a separate program and SBCE customers can apply for both. However, the total rebate amount cannot exceed the project costs.

Applicants must submit a Rebate Reservation application verifying eligibility, provide their SBCE account number, upload a contractor bid, and include documentation for income qualification (if applicable). Reservations must be made before installation.

SBCE customers must apply for the rebate, but the rebate can be received by either the SBCE customer or the contractor. Applicants may identify their contractor as the rebate payee, in which case the contractor is required to pass down the entire rebated amount to customer as shown by line-item deduction on project invoice. 

The existing water heater must be decommissioned, and the new HPWH must comply with local building permit and installation requirements. Photos and permits are required for rebate claims.

Yes, income qualified applicants receive higher rebate amounts. For example, they can receive up to $3,500 for replacing a gas water heater with a HPWH.

Eligible work includes pre-wiring, circuits, receptacles, panel upgrades, and other electrical materials necessary for HPWH installation.

Incomplete applications or those that do not meet requirements will not be approved. Applicants will be notified and may need to resubmit with the correct information.

This rebate is for the purchase and installation of Heat Pump Water Heaters only. Tankless water heaters are not eligible. 

All electric heat pump water heaters qualify, regardless of amperage, voltage, configuration (unitary or split), efficiency rating, or tank size. 

You can apply for a fast and free OnDemand Permit through the City's Building & Safety Division.

Yes! Emergency replacements are not required to have a reservation to receive a rebate from SBCE. For help with receiving your rebate for a HPWH emergency replacement, please call (805) 991-7699 or email SBCEPrograms@SantaBarbaraCA.gov.

A list of vetted contractors can be found at The Switch Is On (you are not required to use one of these contractors).   

Additional resources for building electrification and rebates can be found at Electrification Resources.