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Coming Soon

  • Advisor Hotline with live SBCE staff (English and Spanish)
  • More incentives just for contractors
  • Emergency water heater replacement service
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As a Santa Barbara Clean Energy customer, you are already using clean and carbon-free electricity. But approximately a quarter of local greenhouse gas emissions come from burning fossil fuels in buildings. Switching to ultra-efficient, all-electric appliances in your home is your next step! Choosing electric options such as heat pump water heaters and heat pump heating/air conditioning will make your home healthier, safer, smarter, and more comfortable. 

SBCE's Home Electrification Accelerator Program (HEAP) can help you make the switch and transform your home with rebates, fast and free permitting, and resources and information to make home electrification easier and more affordable. 

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Available Rebates

Heat Pump Water Heater

  • A heat pump water heater (HPWH) is a type of electric water heater that pulls heat from surrounding air into a hot water tank rather than burning gas. 

Associated Electrical Work

  • Associated Electrical Work includes any electrical work that occurs in anticipation of (pre-wiring) or during installation of a HPWH.

Rebate Levels

Heat Pump Water Heater 
Upgrade Measures
Base RebateIncome Qualified Rebate
Replacing Electric Resistance Water Heater$500$1,000
Replacing Gas Water Heater$2,500$3,500
Associated Electrical WorkUp to $2,000Up to $4,000

Eligibility Requirements

  • Participants must be an active SBCE customer.
  • Participants must own their homes.
  • Project site must be a 1 or 2-unit (duplex) residential building (includes individual townhomes, Accessory Dwelling Units, and mobile/manufactured homes) served by SBCE.
  • Project must be permitted and comply with local and State building codes.
  • Projects must be completed after January 15, 2025.
  • Projects must provide verification of installation/completion and decommissioning of gas equipment.

View Program Guidelines and Terms & Conditions

How to Apply

1
Reserve Your Rebate

Submit Reservation Application

  • Provide your SBCE account number (verify via your energy bill or SBCE Customer Service).
  • For Income Qualified rebates, show CARE/FERA enrollment or proof of qualifying income.
  • Upload contractor bid with application.
  • SBCE will review application and notify of approval status.
  • Emergency replacements are not required to have a reservation to receive a rebate from SBCE.
2
Complete Installation

Apply for free on demand building permit

  • Once SBCE notifies you of Rebate Reservation approval, you have 120 days to complete installation of HPWH.
3
Claim Your Rebate

Submit a Rebate Claim

  • Provide itemized invoices, proof of permitting, and photos showing new installation and decommissioned equipment.
  • SBCE will review claim for eligibility and notify you of approval status.
  • Approved rebates will be issued via check to the applicant or the contractor if specified. Contractors must pass the rebate amount to the customer as a line-item deduction on the project invoice.