Upgrade Your Home with Rebates and Tax Credit Savings
Sacramento homeowners and residents in surrounding cities like Roseville, Folsom, and Placer County have access to exclusive rebates, tax credits, and incentive programs to make home upgrades more affordable. Whether you’re replacing your HVAC system, installing a heat pump water heater, or upgrading insulation, there are utility, state, and federal programs designed to help you save.
SMUD Heating & Cooling Rebates
- SMUD Residential Heating & Cooling System Replacement: Rebates Up to $3,000
Heating and cooling account for up to 40% of a home’s energy usage. Upgrading to a high-efficiency HVAC system that meets SMUD’s standards will improve comfort and reduce energy costs, qualifying you for rebates up to $3,000.
- SMUD Residential Heat Pump Water Heaters: Rebates Up to $4,000
Choosing a heat pump water heater can lower your water heating bills and reduce emissions from natural gas.
- SMUD Residential Seal & Insulate: Rebates Up to $3,000
Air leaks in most homes equate to the energy loss of a fully open window, and leaky ducts can cause up to 20% energy losses. Air sealing and insulation are among the most cost-effective ways to enhance energy efficiency.
- SMUD Commercial & Retail Rebates: Up to $350,000
SMUD commercial rebates can range from a few thousand dollars for individual upgrades (like heat pumps) to six-figure incentives for large energy efficiency or electrification projects. Existing-building retrofits can receive up to $100,000–$150,000 per project (generally capped at ~50% of costs), while major new construction or deep retrofit projects can stack incentives totaling up to ~$350,000
Roseville Electric Utility Rebates
- Heat Pump HVAC Systems: Up to $2,500 for variable-stage heat pumps.
Heat pump HVAC systems work well in Roseville climate, and are a clean and efficient alternative to a gas furnace and electric air conditioner.
- Heat Pump Water Heater Rebates: Up to $2,500 when converting gas → electric.
Heat pump water heaters are a highly efficient way to heat water, offering a reduction in energy usage and utility bill savings when compared to electric resistance water heaters.
- HVAC Tune-Up: $50 rebate for seasonal tune-ups.
If you’re a Roseville resident and you’re planning to have your HVAC system tuned-up this spring, be sure to apply between April 1 and October 1 to receive a $50 rebate.
- Smart Thermostat & PowerFlex Energy Saving Program: up to $100 rebate & $25 bill credit.
Through the Power Flex program, Roseville Electric Utility can make brief, minor adjustments to participating customers’ smart thermostats to help conserve energy.
State Incentives
TECH Clean California (HEEHRA)
Due to limited funding availability and complex reservation requirements, Clarke & Rush is not participating in the TECH Clean (HEEHRA) rebate programs at this time.
Federal Tax Credits
Energy Efficient Home Improvement Credit (ended December 31, 2025)
Federal tax credits for energy efficient home upgrades ended under the One Big Beautiful Bill Act signed into law by Donald Trump in 2025. As a result, incentives for qualifying installations expired after December 31, 2025. Homeowners who completed qualifying upgrades before that date may still be able to claim the credit for the applicable tax year.
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Benefits
- Reduce your home’s carbon footprint with a highly efficient heat pump system.
- Improve comfort and reliably heat and cool your space.
- Go electric and improve safety and indoor air quality by eliminating gas which reduces carbon monoxide and other indoor air pollutants.
- Reduce noise from your HVAC system by installing new, quieter equipment.
- Leverage flexible installation options; heat pumps can be ducted, ductless, or a combination of both.
- Pair with a smart thermostat to automate your heat pump system and enhance energy performance.
How to Maximize Your Savings
- Verify your utility provider (SMUD, Roseville Electric, PG&E) to ensure eligibility.
- Use certified contractor, like Clarke & Rush, for installations to qualify for rebates.
- Stack programs where allowed: local utility + state + federal incentives can significantly reduce project costs.
- Keep documentation for federal tax credits — invoices, manufacturer certifications, and proof of installation dates.
- Apply early: Many programs are first-come, first-served and funding may run out.
Frequently Asked Questions (FAQs)
Who qualifies for Sacramento and surrounding area rebates?
Eligibility depends on your utility provider (SMUD, Roseville Electric, PG&E) and the specific program. Many programs require that you are the primary homeowner and that upgrades are performed by certified contractors. Income-based programs, like TECH Clean California/HEEHRA, also require meeting household income thresholds.
Are rebates available for both new installations and replacements?
Most rebates apply to replacing existing systems (e.g., replacing a gas water heater with a heat pump water heater). Always check program rules.
What documentation is required?
Receipts and invoices from certified contractors
Manufacturer certifications showing energy-efficiency ratings
Installation dates
Proof of primary residence
Can I combine federal, state, and local rebates?
Yes, in most cases, local utility rebates (SMUD, Roseville Electric) can be combined with state (HEEHRA/TECH Clean CA) and federal tax credits. Always confirm stacking rules with your contractor.