About
TECH Clean California is a statewide initiative to accelerate the adoption of clean space and water heating technology across California homes in order to help California meet its goal of being carbon-neutral by 2045. The initiative provides market incentives and workforce education and training to make it easier for distributors and contractors to stock, sell, and install low-emissions heat pump technology for residential replacement projects. It was designed to support both existing programs through matched incentive funding, and to extend incentives statewide with an emphasis on access for low-income and disadvantaged communities. Our Data Reporting section provides statewide heat pump data analysis and a dataset download option to better inform heat pump usage and market transformation.
Funding
Original Funding: TECH Clean California's original funding was provided by California gas corporation ratepayers under the auspices of the California Public Utilities Commission (CPUC) in CPUC Decision 20-03-027. TECH Clean California received Cap-and-Invest (formerly Cap-and-Trade) Program funding of $120 million.
Since its initial launch, TECH Clean California has received additional funding from the following sources:
State General Fund: TECH Clean California was allocated an additional $50 million in new funding from the California 2022/2023 fiscal year budget (via Assembly Bill 179) to continue statewide heat pump deployment progress. The California Public Utility Commission (CPUC) published guidelines on how this funding would be used in Decision 23-02-005 (finalized February 2023).
Self-Generation Incentive Program: The California Public Utilities Commission's (CPUC’s) Self-Generation Incentive Program (SGIP) provided heat pump water heater incentives to support single-family and multifamily homes through CPUC Decision 22-04-036. The program, which ended in December 2025, offered heat pump water heater incentives and included a requirement for enrolling customers in a demand response program. Learn more about the SGIP heat pump water heater program incentive structure, budget, and equipment requirements.
High-Efficiency Electric Home Rebate Act (HEEHRA) Rebates Funding: HEEHRA rebates—funded by the Inflation Reduction Act (IRA)—are overseen by the US Department of Energy and managed by the California Energy Commission. TECH Clean California is administering the first phase of the HEEHRA program, which launched on November 12, 2024.
Greenhouse Gas Reduction Fund: TECH Clean California received $95 million as part of the 2023–2024 fiscal year state budget via Assembly Bill 102, funded through the state of California’s Greenhouse Gas Reduction Fund (GGRF). The GGRF funds are in place to reduce greenhouse gas (GHG) emissions, strengthen the economy, improve public health and the environment, and provide benefits to residents of disadvantaged communities, low-income communities, and low-income households.
History
September 13, 2018: Executive Order B-55-18 required California to be carbon neutral by 2045. In response, Senate Bill 1477 authorized funding for TECH Clean California and the Building Initiative for Low-Emissions Development (BUILD) pilot programs, with TECH Clean California focused on building retrofits and BUILD programs focused on new construction.
January 31, 2019: The California Public Utility Commission initiated building decarbonization rulemaking (R.19-01-011). Phase 1 included implementing TECH Clean California.
March 26, 2020: CPUC Decision 20-03-027 established TECH Clean California guidelines. As part of the decision, Southern California Edison was directed to conduct the request for proposal for the initiative implementer.
October 22, 2020: The California Public Utility Commission selected Energy Solutions, with a team of partners, as the TECH Clean California initiative implementer.
June 1, 2021: TECH Clean California received Cap-and-Invest (formerly Cap-and-Trade) Program funding of $120 million. The TECH Clean California Initiative begins.
October 7, 2021: TECH Clean California Pilots launched: Inclusive Utility Investment, Low-Income Heat Pump Adoption, Multifamily Pilot, HPWH Load Shifting, Permit Streamlining, Innovative Customer Targeting. Final reports published as pilots complete.
December 7, 2021: Single-family and multifamily market-rate incentives launched across the state. TECH Clean California adopted the federal government’s goal—established in the Justice40 Initiative—that 40 percent of climate change and clean energy investment impacts should reach disadvantaged communities.
January 25, 2022: TECH Clean California executed a pilot agreement with the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to simplify its residential GoGreen Home Financing offering and to expand eligibility to customers statewide.
February 1, 2022: TECH Clean California’s eleven 2021 Quick Start Grant recipients launched their cohort programs, with completed final reports in 2023.
April 7, 2022: SGIP HPWH Decision 22-04-036 finalized, outlining the guidelines for SGIP HPWH Program deployment.
May 13, 2022: The first round of TECH Clean California single-family and multifamily market rate incentives was fully reserved, funded through the Cap-and-Invest (formerly Cap-and-Trade) Program.
July 1, 2022: The TECH Clean California public reporting website launched, providing access to incentive and program information, interactive heat pump data visuals and downloads, and event recordings.
September 27, 2022: As part of the state budget, the California State Legislature AB 179 authorized $50 million in new funding to continue statewide heat pump deployment progress. Through Decision 23-02-005 (finalized February 2023), the California Public Utility Commission published guidelines on how Assembly Bill 179 funding for TECH Clean California would be used.
November 28, 2022: TECH Clean California published its annual report covering the first program year (June 2021-June 2022).
February 1, 2023: TECH Clean California’s eight 2022 Quick Start Grant recipients launched their cohort programs, with completed final reports in 2024.
April 25, 2023: TECH Clean California relaunched single-family heat pump HVAC incentives, funded by AB 179.
June 13, 2023: TECH Clean California launched multifamily heat pump HVAC systems and heat pump water heaters incentives, funded by AB 179. Due to high demand, this phase of project reservations was fully allocated within a day.
June 27, 2023: Senate Bill 101 allocated $95 million to TECH Clean California through the California Greenhouse Gas Reduction Fund Program.
September 6, 2023: TECH Clean California’s second round of multifamily heat pump HVAC and heat pump water heaters incentives launched, funded through AB 179.
October 12, 2023: TECH Clean California hosted its first Data Webinar, which highlighted key findings of customer bill savings, panel upgrade frequency, and project cost drivers.
October 31, 2023: TECH Clean California launched heat pump water heater market rate and equity incentives, for income-qualified customers, funded through the SGIP HPWH Program. These incentives offered an additional $50 bonus to contractors for enrolling customers in a demand response program.
December 12, 2023: TECH Clean California launched multifamily unitary heat pump water heater incentives, funded through the SGIP HPWH Program.
February 6, 2024: New demand response program and time-of-use plan requirements, as well as budget updates, became required for single-family market rate projects in Pacific Gas & Electric, Sacramento Municipal Utility District, and other electric municipality service areas.
March 12, 2024: TECH Clean California launched multifamily central heat pump water heater incentives, funded through the SGIP HPWH Program.
March 14, 2024: TECH Clean California released its annual report covering the second program year (July 2022-June 2023).
May 30, 2024: TECH Clean California heat pump water heater market rate incentives—funded through the SGIP Program —Phase 1 was fully reserved.
July 9, 2024: TECH Clean California heat pump water heater equity incentives—funded through the SGIP Program —Phase 1 were fully reserved.
August 27, 2024: TECH launches heat pump technical and sales trainings, in partnership with Electrify My Home and National Comfort Institute. Evaluation results show strong outcomes, where 43 percent of EMH participants surveyed reported earned a promotion since completing the training.
October 8, 2024: The High-Efficiency Electric Home Rebate Act (HEEHRA) launched $35 million in rebates for multifamily projects with the following eligible equipment: heat pump HVAC, heat pump water heaters, cooktops, ranges, ovens, and heat pump clothes dryers.
October 24, 2024: On Heat Pump Water Heater Day, the Advanced Water Heating Initiative honored TECH Clean California with the “Residential Heat Pump Market Transformer” award.
November 12, 2024: TECH Clean California launched single-family heat pump HEEHRA rebates, funded through the HEEHRA Program.
November 12, 2024: TECH Clean California launched single-family market rate heat pump HVAC incentives, with an electric utility demand response program enrollment, funded through the California Greenhouse Gas Reduction Fund Program.
December 1, 2024: The Strategic Early Replacement pilot program implementation launched.
December 10, 2024: TECH Clean California launched single-family heat pump water heater and air-to-water heat pump incentives, funded through the California Greenhouse Gas Reduction Fund Program.
December 24, 2024: TECH Clean California launched heat pump water heater market rate incentives, funded through the SGIP Phase 2.
January 29, 2025: TECH Clean California launched small multifamily unitary and central heat pump water heater incentives for properties and buildings servicing 10 or fewer units, funded through the California Greenhouse Gas Reduction Fund Program.
February 24, 2025: TECH Clean California heat pump water heater equity incentives—funded through the SGIP—Phase 2 were fully reserved.
February 17, 2025: The Unleashing American Energy Executive Order paused heat pump HVAC HEEHRA rebates offered through TECH Clean California to income-qualified Californians.
March 7, 2025: TECH Clean California received an additional $95 million in funding through the Greenhouse Gas Reduction Fund, as appropriated by AB 102 upon adding Item 8660- 101-3228 to Section 2.00 of the Budget Act of 2023.
March 12, 2025: California resumed the state’s HEEHRA program, previously paused by the Unleashing American Energy Executive Order.
April 11, 2025: Single-Family HEEHRA rebates were fully reserved for the Northern California region. Rebates for the Southern region were fully reserved on June 17, 2025, and the Central region on June 20, 2025.
May 6, 2025: TECH Clean California received the Peak Load Management Alliance (PLMA) Award of Excellence in Load Management at the PLMA Spring Conference. TECH Clean California’s HPWH program team, as well as the California Public Utilities Commission, was recognized for its integrated demand-side management requirements, which include enrollment in a demand response program and daily load shifting programs, as well as a time-of-use rate plan.
May 22, 2025: TECH Clean California launched the Heat Pump Ready program to provide workforce education and heat pump training to early career contractors.
July 15, 2025: TECH Clean California launched single-family heat pump HVAC (air-source and air-to-water) and heat pump water heater incentives, funded through the California Greenhouse Gas Reduction Fund Program. A key update included new income-eligible kicker incentives, as well as a minimum of 50 percent of the budget allocated towards income-eligible projects.
July 25, 2025: AB 157 allocated $40 million, from the Aliso Canyon Recovery Account, to TECH Clean California to support continued heat pump deployment in the Aliso Canyon and San Fernando Valley area. CPUC Decision 25-06-034 (June 2025) established guidelines for this deployment.
October 31, 2025: TECH Clean California commercial heat pump water heating incentives were fully reserved, funded through the SGIP HPWH Program.
November 14, 2025: TECH Clean California single-family heat pump HVAC and heat pump water heater incentives were fully reserved, funded through the California Greenhouse Gas Reduction Fund Program.
November 19, 2025: TECH Clean California launched multifamily incentives, including standard incentives and enhanced support pathway incentives, funded through the California Greenhouse Gas Reduction Fund Program.
November 21, 2025: TECH Clean California published its annual report covering the third program year.
November 25, 2025: HEEHRA rebates for new single-family heat pump HVAC projects reopened.
TECH Clean California Team
Energy Solutions
A mission-driven clean technologies implementation firm that has pioneered market-driven solutions that deliver reliable, large-scale, and cost-effective results to utility, government, and private sector clients across North America.
Association for Energy Affordability
A not-for-profit technical services and training organization at the forefront of increasing energy efficiency and green building practices in multifamily buildings.
The Ortiz Group
A mission-driven program management and training services company that specializes in serving low-income communities.
National Comfort Institute
An organization devoted to education for heating, ventilation, and air conditioning professionals, delivering customized HVAC decarbonization training.
VEIC
A sustainable energy company that
designs and implements decarbonization
pilots and programs that reduce energy
burdens and advance emerging technologies
and models.
Building Decarbonization Coalition
A coalition of energy providers, manufacturers, design and construction firms, local governments, and NGOs committed to eliminating emissions from the built environment.
Ardenna Energy
A clean energy consultancy focused on bringing residential energy efficiency and electrification technologies to market.
Tre’Laine
A WBE consultancy firm focused on crosscutting design, strategy, implementation, and evaluation of energy efficiency programs.
Central Coast Energy Services, Inc.
A not-for-profit organization that provides energy conservation, consumer education and advocacy, home improvement, utility assistance, job training, and other services to people in need.
Frontier Energy
A professional services firm delivering energy efficiency, market transformation, and transportation solutions through technical consulting, program design and implementation, and technology development.
Recurve
A software company providing integrated program administration, measurement and verification, and data analytics support to utilities and program implementers.
Electrify My Home
A partnership operated by Larry Waters that provides real world contractor education for the skills required for “Good Electrification.”
Energy Outlet
A utility rebate program administrative service that makes it simpler for contractors to navigate utility programs and enables them to pursue more energy-related opportunities and grow their businesses.