Green Building Incentives and Installation Resources

Green building upgrades can make your building or home healthier and more comfortable while reducing greenhouse gas emissions and helping save money on utility bills. There are multiple available and upcoming incentives from the federal, state, regional and local level to help you earn savings on your next green building project. These incentives include direct rebates, tax credits and affordable loans. Many of these incentives are stackable to ensure maximum savings. If you are interested in learning more about how to electrify your own home, check out the How to Electrify Your Home webpage or visit Quitcarbon.com to get free guidance on making clean energy upgrades to your home.

As a Clean Power Alliance customer, you can access free expert energy guidance through CPA's Energy Team, which provides energy upgrade assessments as well as information regarding electric upgrades, available rebates for homes/small businesses or how to lower your electric bill. 

Federal:

Rebates:

• The Home Efficiency Rebates Program: Home Efficiency Rebates will award grants to State energy offices to provide rebates that discount the price of energy-saving retrofits in single-family and multi-family buildings. 

Tax Credits:

Clean Energy Tax Credits are available to be claimed by primary residences. You may claim these tax credits for improvements on your main home, whether you own or rent it. There are two different groups of tax credits available:

• Residential Clean Energy Tax Credit: The Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property for your home installed anytime from 2022 through 2033. The credit percentage rate phases down to 26% for property placed in service in 2033 and 22% for property placed in service in 2034. 
• Home Energy Tax Credit: If you make energy improvements to your home (including appliances and efficiency upgrades), tax credits are available for a portion of qualifying expenses.
• The Energy Efficient Home Improvement Credit (EEHIC) and the Residential Clean Energy Credit (RCEC) expire December 31, 2025.  Find more information here.
• How to use tax credits: File Form 5695, Residential Energy Credits with your tax return to claim the credit. You must claim the credit for the tax year when the property is installed, not merely purchased.

• This process can be daunting and burdensome for homeowners and those interested in purchasing electric vehicles. To simplify the process, Third Act Southern California put together a set of easy-to-understand information sheets to help you begin your energy efficiency journey. 

State

• Home Electrification and Appliance Rebates (HEEHRA) provides rebates for multifamily and single-family home retrofits including heat pump HVAC, heat pump water heaters, cooktops, ranges, ovens, and heat pump clothes dryers. 
• TECH Clean California is a statewide initiative to accelerate the adoption of clean space and water heating technology across California homes. Enrolled contractors installing Heat Pump HVAC systems and Heat Pump Water Heaters can earn up to $3,100 per installation. To find a TECH Clean California enrolled contractor, visit Switchison.org.
• If you are a contractor, click here to apply for TECH Clean California Incentives.
• The California Public Utilities Commission's Self-Generation Incentive Program (SGIP) offers incentives for installing paired solar and energy storage technology at low-income residential properties. To get started, reach out to an approved installer who can help you navigate the application process. For up-to-date information on the current SGIP budget, visit the SGIP home page. 

Regional

• The South Coast Air Quality Management District (AQMD) GO ZERO pilot incentive program for zero-NOx space and water heating appliances is offering rebates for single-family and multi-family properties, as well as small businesses. Learn more about the benefits of heat pumps here. 
• The Southern California Regional Energy Network (SoCalREN) Multifamily Program provides technical assistance and rebates to help you make energy upgrades on your property. If you are a multifamily property owner, click this link to fill out an interest form.
• Southern California Edison (SCE) directly funds the Golden State Rebates Program. Golden State Rebates provides an instant rebate coupon to qualified CPA customers for room air conditioners.

Heat Pump Water Heater Electrification Scenario

Say you own a single family home (not income-qualifying) and are replacing your old gas water heater with a new Heat Pump Water Heater (HPWH) and the total project cost (unit cost + installation cost) = $8,000. By stacking rebates and incentives, here is how much could be saved on the project:

• TECH Clean California: $5,221 (Average total incentive paid per residence in LA County is $5,221. Baseline incentive for not income-qualifying home is $2,100.)
• Home Energy Tax Credit: $2,000
• Total Savings = $7,221

The total cost of your HPWH project has been reduced by 90% and now stands at $779.

Financing Options

• GoGreen Financing offers affordable loans to both single/multi-family homeowners and small businesses. Administered by the State of California with support from the investor-owned utilities, GoGreen facilitates financing for energy retrofits for qualifying properties.
• Property Assessed Clean Energy Program (PACE) offers a turnkey resource for residential and commercial property owners to finance energy efficiency, renewable energy, water conservation and seismic improvements. Sign up to receive PACE financing on your next energy efficiency project through a listed provider.

Find a contractor

Here is a list of contractors who performed heat pump water heater ("HPWH") or heat pump space heating/cooling system ("HP HVAC") installations in LA county.

For more information, contact environment.mailbox@santamonica.gov