Multifamily Standard Incentives
TECH Clean California new multifamily standard incentives are now available until December 12, 2025.
As of November 19, 2025, multifamily standard heat pump HVAC and heat pump water heater incentives are now available statewide.
As of July 10, 2025, TECH Clean California multifamily and small multifamily heat pump water heater incentives released prior to this date are fully reserved and are not accepting new reservations.
Multifamily Standard Incentives – Now Available
The reservation application form is available starting November 19, 2025, at 12:00 p.m. PT, and submissions will be accepted through December 12, 2025 5:00 p.m. PT.
Contact techmf@aea.us.org with any questions.
The multifamily incentives are available for the installation of heat pump water heater and heat pump HVAC in multifamily properties with two or more dwelling units. These incentives are only available in retrofit scenarios where a heat pump is replacing a non-heat pump system, and can be stacked with other federal, state, or local incentives or tax credits, with the exception of HEEHRA and Equitable Building Decarbonization (EBD) which are not allowed to be stacked with TECH Clean California incentives. Incentives are available to TECH Clean California contractors, and they are required to pass 100 percent of the savings onto the customer.
For these new standard incentives, there is an incentive cap of $500,000 per contractor across all projects. In addition, California Department of Industrial Relations (DIR) public works prevailing wage compliance requirements apply to all multifamily incentives.
Multifamily Standard Heat Pump Water Heater Incentives
| System Type | Previous Equipment | Upgrade Type | Incentive |
|---|---|---|---|
| Unitary Heat Pump Water Heater (In-Apartment and Common Area) | Gas/Propane/Electric Resistance to HPWH | <55 gal | $4,500 |
| Unitary Heat Pump Water Heater (In-Apartment and Common Area) | Gas/Propane/Electric Resistance to HPWH | ≥55 gal | $5,500 |
| Unitary Heat Pump Water Heater (In-Apartment and Common Area) | Gas/Propane/Electric Resistance to HPWH | Low GWP Adder | $1,500 |
| Central Heat Pump Water Heater | Gas/Propane/Electric Resistance to HPWH | <17 gallons per bedroom served | $2,200 (per apartment served) |
| Central Heat Pump Water Heater | Gas/Propane/Electric Resistance to HPWH | ≥17 gallons per bedroom served | $3,000 (per apartment served) |
| Pool and Spa Heat Pump Water Heater | All Non-Heat Pump Systems | N/A | $4,000 |
Multifamily Standard Heat Pump HVAC Incentives
Individual Heat Pump HVAC (In-Apartment and Common Area)
| Upgrade Type | Incentive |
|---|---|
| 1 or 2 speed PTHP (traditional form factor) | $1,000 (per equipment) |
| Variable Capacity Room Heat Pumps (non-split systems or non-rooftop systems) | $2,000 (per equipment) |
| Split or Packaged Rooftop/Multi-Position Heat Pump (ducted or ductless) | $4,000 (per compressor) |
| Air-to-Water Heat Pumps (for space conditioning only or combi-systems for space conditioning and water heating) | $8,000 (per HVAC only or HVAC+DHW) |
Central HVAC (2+ Apartments)
| Upgrade Type | Incentive |
|---|---|
| Heat Pump HVAC (equipment serving multiple apartments) | $1,500 (per apt served) |
Resources
Multifamily Standard Incentives Flyer
How to Compete the Multifamily Reservation Form - coming soon
Multifamily Qualifying Equipment Requirements
Multifamily Proof of Project Milestone Requirements
Terms and Conditions - coming soon
Multifamily Incentives Rules Webinar – Slide Deck
Small Multifamily Incentive Qualifications for HPWHs
How to Complete the Multifamily Incentive Reservation Form
Ecosizer Central HPWH Calculator
TECH HPWH Central MF HPWH Control and Communication Requirements
Rules for Central HPWH Incentives - Presentation Slides
Rules for Central HPWH Incentives - Video Recording
Statewide Unitary HPWH Multifamily Incentives Webinar - Presentation Slides
Statewide Unitary HPWH Multifamily Incentives Webinar - Video Recording
Funding for this project is part of California Climate Investments, a statewide initiative that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — particularly in disadvantaged communities.