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.
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. $116 million was allocated to TECH Clean California to spend over a four-year period, with $72 million reserved for incentives. This funding was allocated proportionally to gas investor-owned utility (IOU) share of cap-and-trade allowances per the below.
CPUC Funding: TECH Clean California was allocated an additional $50 million in new funding from the California 2022/2023 fiscal year budget via CPUC Decision 23-02-005. Information on new incentive budgets and the amounts remaining can be found on the Incentives page.
GGRF Funding: TECH Clean California was awarded $25 million for the Single Family Heat Pump HVAC Incentive program. This funding is through the state of California’s Greenhouse Gas Reduction Fund (GGRF), administered by the California Public Utilities Commission (CPUC). 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.
HEEHRA Rebates Funding: HEEHRA rebates are funded by the Inflation Reduction Act (IRA), are overseen by the U.S. 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.
Incentive Layering: TECH Clean California has partnered with the following programs to combine, or "layer", incentives for heat pump water heating and heat pump HVAC systems throughout the state:
History
September 2018:
September 13, 2018: Executive Order B-55-18 required California to be carbon neutral by 2045; 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 2019:
January 31, 2019: The California Public Utility Commission initiated building decarbonization rulemaking (R.19-01-011). Phase 1 included implementing TECH Clean California.
March 2020:
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 2020:
October 22, 2020: Energy Solutions, with a team of partners, was selected as the TECH Clean California initiative implementer.
December 2021:
December 1, 2021: TECH Clean California implementation began.
December 7, 2021: Single-family and multifamily market rate incentives launched across the state. TECH Clean California adopted the federal government’s goal percentage of climate change and clean energy investment impacts reaching disadvantaged communities that were established in the Justice40 Initiative.
February 2022:
February 1, 2022: TECH Clean California 2021 Quick Start Grant recipients launch cohort programs.
May 2022:
May 13, 2022: The first round of TECH Clean California single-family and multifamily market rate incentives was fully reserved.
August 2022:
August 1, 2022: The TECH Clean California public reporting website launched. This site houses incentive information, data downloads, and event recordings.
September 2022:
September 27, 2022: As part of the passed state budget, the State Legislature authorized $50 million in new funding to expand decarbonization efforts.
November 2022:
November 28, 2022: TECH Clean California published an annual report covering the first program year.
February 2023:
February 1, 2023: TECH Clean California 2022 Quick Start Grant recipients began their cohort programs.
February 2, 2023: The California Public Utility Commission allocated $50 million in new funding to TECH Clean California through Decision 23-02-005.
February 28, 2023: TECH Clean California is awarded the Groundbreaking Program Design and Implementation Award at the AESP (Association of Energy Services Professionals) annual conference in New Orleans. This award is in recognition of TECH Clean California’s innovative and comprehensive approach to market transformation in clean heating.
April 2023:
April 25, 2023: TECH Clean California relaunched single-family heat pump HVAC incentives.
June 2023:
June 13, 2023: TECH Clean California launched multifamily heat pump HVAC systems and heat pump water heaters incentives. Due to high demand, this phase of project reservations was fully allocated within a day.
September 2023:
September 6, 2023: TECH Clean California’s second round of multifamily heat pump HVAC systems and heat pump water heaters incentives launched.
October 2023:
October 12, 2023: The TECH Clean California data team hosted the first data webinar, which highlighted key findings of customer bill savings, panel upgrade frequency, and project cost drivers.
October 25, 2023: TECH Clean California presented program data and insights on heat pump adoption at the California Energy Commission and Electric Power Research Institute’s Building Electrification Summit in Sacramento, California.
October 31, 2023: TECH Clean California launched heat pump water heater market rate and equity incentives (funded through the Self Generation Incentive Program, SGIP).
October 31, 2023: TECH Clean California began offering an additional $50 bonus to contractors for enrolling customers in a demand response program.
December 2023:
December 1, 2023: TECH Clean California 2021 Quick Start Grant recipients concluded their cohort programs.
December 12, 2023: TECH Clean California launched multifamily unitary heat pump water heater incentives.
January 2024:
January 9, 2024: The TECH Clean California heat pump water heater equity incentives verification portal became available for customers to use to confirm their income-based eligibility for higher equity incentives.
January 23, 2024: TECH Clean California hosted the "Good Stewardship of the Panel" webinar, convening a wide range of stakeholders to identify and discuss electrical panel best practices for building electrification.
February 2024:
February 1, 2024: Incentives for heat pump water heaters began requiring demand response and time-of-use rate plan enrollment for the Sacramento Municipal Utility District service area.
February 2, 2024: The Learn & Earn program reached capacity and no new equipment requests were accepted after this date.
February 6, 2024: New demand response and time-of-use requirements, as well as budget updates, affected eligibility for incentives, incentive claim form inputs, and single-family market rate sales in Pacific Gas & Electric, Sacramento Municipal Utility District, and other electric municipality service areas.
March 2024:
March 12, 2024: TECH Clean California launched multifamily central heat pump water heater incentives.
March 14, 2024: TECH Clean California released annual report covering the second program year.
April 2024:
April 22, 2024: Additional $5 million in funds were allocated to single-family heat pump water heater equity incentives in Pacific Gas and Electric, San Diego Gas & Electric, and Southern California Gas service areas.
May 2024:
May 20, 2024: TECH Clean California published the Permitting Pilot final report.
May 30, 2024: TECH Clean California heat pump water heater market rate incentives (funded through the Self Generation Incentive Program, SGIP) Phase 1 were fully reserved. A regional breakdown of previous funding updates is as follows:
- February 6, 2024: Electric investor-owned utility customers in Pacific Gas & Electric gas service area.
- February 9, 2024: Sacramento Municipal Utility District electric service area.
- March 7, 2024: Non-Sacramento Municipal Utility District publicly owned utility electric customers.
- April 4, 2024: Investor-owned utility customers in San Diego Gas & Electric gas service area.
- May 30, 2024: Electric investor-owned utility customers in Southern California Gas service area.
July 2024
July 9, 2024: TECH Clean California heat pump water heater equity incentives (funded through the Self Generation Incentive Program, SGIP) Phase 1 were fully reserved. A regional breakdown of previous funding updates is as follows:
- May 29, 2024: All customers in Pacific Gas & Electric gas service area.
- May 30, 2024: Electric investor-owned utility customers in Southern California Gas service area.
- June 3, 2024: Non-Sacramento Municipal Utility District publicly owned utility electric customers.
- July 9, 2024: Investor-owned utility customers in San Diego Gas & Electric gas service area.
July 22, 2024: TECH Clean California published the Quick Start Grant report for Alameda County Green and Healthy Homes.
July 25, 2024: $25 million in new funding was added to the TECH Clean California single-family heat pump HVAC budget. TECH Clean California was awarded this new funding through the state of California’s Greenhouse Gas Reduction Fund, administered by the California Public Utilities Commission.
August 2024:
August 23, 2024: TECH Clean California published the Quick Start Grant report for Bassett Avocado Heights Advanced Energy Community heat pump water heater initiative.
August 27, 2024: Tulare Energy Education Center hosted the first TECH Clean California community-based organization training.
August 27, 2024: TECH Clean California hosted the Quick Start Grant webinar with Franklin Energy and The Energy Coalition titled “Designing Inclusive and Comprehensive Electrification Programs.”
August 30, 2024: Panoma, California hosted a TECH Clean California community-based organization training.
September 2024
September 5, 2024: The Menifee Service Center hosted a TECH Clean California community-based organization training.
September 19, 2024: The Santa Barbra Service Center hosted a TECH Clean California community-based organization training.
September 23, 2024: TECH Clean California published the Quick Start Grant with Richard Heath & Associates (RHA) Heat Pump Water Heater Best Practice report.
September 25, 2024: The Irvine Service Center hosted a TECH Clean California community-based organization training.
September 25, 2024: TECH Clean California published the Quick Start Grant Clean 350 Bay Area’s Indoor Air report.
October 2024
October 8, 2024: $35 million in HEEHRA rebates for multifamily projects launched for the following eligible equipment; heat pump HVAC, heat pump water heaters, cooktops, ranges, ovens, and heat pump clothes dryers.
October 23, 2024: On Heat Pump Water Heater Day, TECH Clean California earned national recognition for its transformative impact on the residential heat pump water heater market. The Advanced Water Heating Initiative honored TECH Clean California with a “Residential Heat Pump Market Transformer” award.
November 2024
November 12, 2024: TECH Clean California launched single-family heat pump HVAC HEEHRA rebates.
November 12, 2024: TECH Clean California launched single-family market rate heat pump HVAC incentives, with an electric utility demand response program enrollment.
December 2024
December 1, 2024: TECH Clean California 2022 Quick Start Grant recipients concluded their cohort programs.
December 10, 2024: TECH Clean California launched single-family heat pump water heater and air-to-water heat pump incentives.
December 24, 2024: TECH Clean California launched heat pump water heater market rate incentives (funded through the Self Generation Incentive Program, SGIP) Phase 2.
January 2025:
January 29, 2025: TECH Clean California launched small multifamily unitary and central heat pump water heater incentives for properties/buildings servicing 10 or fewer units.
February 2025:
February 24, 2025: TECH Clean California heat pump water heater equity incentives (funded through the Self Generation Incentive Program, SGIP) Phase 1 were fully reserved. A regional breakdown of previous funding exhaustion dates is as follows:
- January 17, 2024: Incentives were fully reserved for any customers whose home bedroom/bathroom configurations do not fall within the California Plumbing Code (Chapter 5, Table 501.1(2) in 2022 California Plumbing Code).
- February 24, 2025: SGIP heat pump water heater incentives were fully reserved.
February 17, 2025: Heat pump HVAC HEEHRA rebates offered through TECH Clean California to income-qualified Californians were paused due to a pause of federal funding by the Executive Order.
March 2025:
March 5, 2025: TECH Clean California published the last of its Quick Start Grant reports for the 2021 cohort.
March 12, 2025: California resumed the state’s HEEHRA rebate program, previously paused by the Executive Order.
April 2025:
April 11, 2025: Northern California HEEHRA rebate budget became fully reserved. HEEHRA rebate funding for Central and Southern California regions remained available.
May 2025
May 6, 2025: TECH Clean California received the Peak Load Management Alliance (PLMA) Award of Excellence in Load Management at the 2025 PLMA Spring Conference in Kansas City, Missouri. TECH Clean California’s heat pump water heater program team, including the California Public Utilities Commission, was recognized for its integrated demand-side management requirements (including enrollment in a demand response and daily load shifting programs, and 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.
June 2025
June 17, 2025: Single-family HEEHRA rebate budget for the Southern California region was fully reserved.
June 20, 2025: Single-family HEEHRA rebate budget for the Central California region was fully reserved.
July 2025
July 15, 2025: TECH Clean California launched single-family heat pump HVAC (air-source and air-to-water) and heat pump water heater incentives. 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.
October 2025
October 3, 2025: TECH Clean California opened solicitations for its Quick Start Grant 2025 cohort.
October 31, 2025: TECH Clean California commercial water heating incentives were fully reserved.
November 2025
November 14, 2025: TECH Clean California single-family heat pump HVAC and heat pump water heater incentives statewide were fully reserved.
November 19, 2025: TECH Clean California launched multifamily incentives, including standard incentives and enhanced support pathway incentives.
November 21, 2025: TECH Clean California published an 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 & 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 which provides energy conservation, consumer education & 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 making it simpler for contractors to navigate utility programs and enable them to pursue more energy-related opportunities and grow their business.