SMUD Heat Pump Water Heater Replacement Incentives

SMUD offers rebates and financing options on energy-efficient heat pump water heaters for your home. When it’s time to replace your water heater, SMUD recommends ENERGY STAR® heat pump water heaters that use up to 60% less* energy than standard electric water heaters. Heat pumps use ambient air to condense and create heat instead of using electricity to create heat. This method nearly delivers double the efficiency when compared to a conventional electric water heater. Powering forward. Together.




Rebates and Financing

SMUD residential customers that replace an existing electric storage tank water heater with a select ENERGY STAR® heat pump water heater may be qualified to receive a rebate from SMUD.

Installation requirements:

Installation is similar to a standard electric water heater using the same water and electrical connections. The heat pump water heater must:

  • Be labeled an ENERGY STAR® heat pump water heater
  • Store a minimum of 50 gallons of water and have an Energy Factor of 2.0 or greater
  • Be installed new (not used) at a residential location within the SMUD territory
  • Be permanently installed at the structure
  • Have minimum required clearances and free area as determined by the manufacturer
  • Meet all applicable codes and adhere to applicable building permit processes for proper installation

How it Works:

Get started by downloading the SMUD HPWH Rebate Application.Then take these steps to have a HPWH installed and receive a rebate:

  • Self-install a HPWH using best practices or...
  • Contact a program qualified contractor. Review a list of participating contractors and make an appointment today
  • Schedule your installation. Meeting with a qualified plumber, select a heat pump water heater brand and model and schedule installation.
  • Complete the installation. Your plumber will install your heat pump water heater and complete all required paperwork needed to get your rebate.
  • Collect your rebate. Your rebate check from SMUD will arrive 4-6 weeks after all paperwork has been received.

Note: Rebate levels are subject to change and availability is on a first come, first serve basis while funding lasts. Additional rebates may be available from your local gas utility along with tax credits from the federal government.

Special financing is also available from SMUD. For more details, contact SMUD Financing at 916-732-5472, 8 a.m. - 5 p.m., Monday – Friday.