Two Different Products, Two Different Rebates
SMUD offers separate rebates for a heat pump water heater and a heat pump HVAC unit. They are not the same product.
Many Sacramento homeowners mix these two products up. Both use heat pump tech. Both qualify for SMUD rebates in 2026. But they do different jobs. Fresh Air installs HVAC heat pumps that heat and cool your home. We explain the difference at every free estimate so you can stack both rebates the right way.
An HVAC heat pump moves heat between indoors and outdoors year-round. In summer it cools. In winter it heats. It replaces your furnace and AC in one unit. SMUD rebate for gas-to-electric HVAC heat pumps is $3,000. Check current amounts at smud.org.
A heat pump water heater sits in your garage or utility room. It pulls heat from the air and moves it to your water. It replaces a standard electric or gas water heater. SMUD rebate for gas-to-electric heat pump water heaters is $4,000. Check current amounts at smud.org.
These are separate products on separate circuits. Installing both in the same year means you can claim both SMUD rebates. That is up to $7,000 combined. Fresh Air installs the HVAC side and can help you plan the timing.
Rebate amounts and rules are set by SMUD and may change. Fresh Air Heating & Air is not affiliated with, endorsed by, or sponsored by SMUD or any rebate program. Verify current rebate amounts and requirements directly with your utility provider before making purchasing decisions.
Both products share a name because both use the same coolant cycle to move heat. But the HVAC heat pump connects to your ductwork. It replaces a full heating and cooling unit. The water heater connects to your plumbing. It replaces a tank. They need different contractors, different permits, and different rebate forms.
Fresh Air fields calls every month from Sacramento homeowners who thought they had replaced their heat pump when they only replaced the water heater, or vice versa. Getting both upgrades in the right order lets you get the most from available rebates. Call (916) 416-8181 or visit /contact/ to schedule a free estimate on the HVAC side.
Some plumbing and HVAC companies do both. Fresh Air focuses on HVAC heat pumps only. We recommend a licensed plumber for the water heater side. Each trade handles its own specialty.
Yes. SMUD treats them as separate products with separate rebate forms. You can claim both if you install both in SMUD service territory. Verify current amounts and rules at smud.org.
No. An HVAC heat pump conditions air only. It has no connection to your plumbing. Your hot water supply is completely separate.
PG&E customers in Roseville, Folsom, and Rocklin have different incentive programs than SMUD customers in Sacramento. Fresh Air identifies your utility at the free estimate and explains what applies.
Call (916) 416-8181 or visit /contact/. Fresh Air installs heat pump HVAC units across Sacramento, Elk Grove, Folsom, Roseville, Rocklin, Citrus Heights, and Rancho Cordova. Licensed CSLB #945361, insured, since 2009.