HVAC Rebates & Incentives in San Jose, CA
Save on a Qualifying HVAC Upgrade
Upgrading your heating and cooling system can be a significant investment. Depending on your location, utility provider, existing HVAC system, household eligibility, equipment selected, and current program funding, you may qualify for rebates or other incentives that can help reduce the cost of an eligible HVAC upgrade.
Rad Air Care US helps homeowners and eligible property owners in San Jose, Campbell, Santa Clara, and surrounding South Bay communities understand potential HVAC rebate opportunities when considering a qualifying heat pump or other energy-efficient heating and cooling upgrade.
Because rebate programs have different eligibility requirements, equipment specifications, funding limits, and application procedures, rebate availability and incentive amounts can change at any time. We recommend checking current program requirements before purchasing equipment or beginning installation.
Thinking About an HVAC Upgrade?
HVAC Rebates for San Jose & South Bay Homeowners
California has several programs that may provide incentives for qualifying energy-efficient HVAC upgrades.
Depending on your property and project, potential incentives may come from:
Local electric utilities and community choice energy providers
California energy-efficiency programs
State-funded programs
Local city and regional energy programs
Income-qualified programs
Multifamily energy-efficiency programs
Other utility or equipment incentives that may become available
For many homeowners, heat pump heating and cooling systems are especially important because several current incentive programs are designed to encourage efficient electric heating and cooling.
For example, Silicon Valley Clean Energy (SVCE) currently lists rebates for qualifying heat pump HVAC projects, including incentives for replacing an existing gas furnace or electric-resistance heating system. Current amounts vary based on the existing heating system and income eligibility.
However, qualifying for a rebate is never automatic.
Your potential eligibility can depend on:
- Property location
- Electricity provider
- Existing heating system
- Selected HVAC equipment
- Equipment efficiency
- Household income
- Property type
- Required permits
- Project timing
- Program funding and availability
What HVAC Projects May Qualify for Rebates?
The type of project that qualifies depends on the specific incentive program.
Heat Pump Heating & Cooling
Heat pump HVAC systems are one of the primary areas of focus for many current electrification incentive programs.
A heat pump can provide both heating and cooling using electricity, making it an alternative to a traditional gas furnace and separate air conditioning system.
Depending on the program, incentives may be available when replacing:
An existing gas furnace
An electric-resistance heating system
Other qualifying heating equipment
Equipment must meet the requirements of the specific program.
For example, current SVCE specifications require qualifying heat pump HVAC equipment to meet specific efficiency and installation requirements, and certain gas-furnace replacement projects require removal of the existing gas furnace.
Furnace to Heat Pump Upgrades
Replacing an existing gas furnace with a qualifying heat pump can be an important pathway for certain electrification incentive programs.
Some programs specifically encourage homeowners to replace conventional fossil-fuel heating with electric heat pump technology.
For eligible SVCE customers, the current Home Rebates program lists a base rebate for replacing a gas furnace with a qualifying heat pump HVAC system, with a higher amount available for qualifying income-qualified customers.
The exact amount available to a homeowner depends on the applicable program and project requirements.
High-Efficiency HVAC Upgrades
Some incentive programs may support high-efficiency heating and cooling upgrades, but not every HVAC replacement automatically qualifies.
The equipment may need to meet specific requirements related to:
Efficiency ratings
System configuration
Equipment certification
Existing equipment being replaced
Installation requirements
Permitting
Program-approved specifications
For this reason, it is important to check eligibility before purchasing or installing the equipment.
Multifamily HVAC Improvements
Multifamily properties may have access to incentive programs that differ from those available to single-family homeowners.
Depending on the property and program, incentives may apply to qualifying:
In-unit heat pump HVAC systems
Central heat pump HVAC systems
Common-area HVAC systems
Duct replacement and improvements
Other energy-efficiency upgrades
For example, BayREN’s BAMBE program currently lists incentives for qualifying multifamily energy-efficiency projects, including heat pump HVAC systems and duct replacement. As of September 1, 2026, the program reported $4.2 million in unreserved incentive funds for program years 2026 and 2027.
Multifamily eligibility can involve additional requirements related to the number of units, property type, project scope, energy savings, and program territory.
Heat Pump Rebates in San Jose
If you’re considering replacing an older furnace or upgrading your home’s heating and cooling system, heat pump incentives may be worth investigating before you begin the project.
A qualifying heat pump HVAC system can provide both heating and cooling from one system and may reduce the need for separate conventional heating and cooling equipment.
For homeowners in the Silicon Valley Clean Energy service area, current SVCE Home Rebates include:
Up to $2,000 for qualifying heat pump HVAC replacement of an existing gas furnace
Up to $3,000 for qualifying income-qualified customers replacing a gas furnace
Up to $500 for qualifying replacement of electric-resistance heating
Additional incentives may be available depending on location, income qualification, or other eligible components.
Some cities within the SVCE service area also offer additional incentives. For example, SVCE currently lists additional city incentives for qualifying projects in communities including Milpitas, Sunnyvale, and Los Altos.
Important: These amounts are examples of currently published program incentives, not a guarantee that a particular project will qualify. Program rules, funding, and availability can change.
Income-Qualified HVAC Rebates
Some programs offer additional incentives for households that meet specific income requirements.
Income-qualified programs may be designed to make energy-efficient home upgrades more affordable for low- and moderate-income households.
Eligibility can depend on:
Household income
Household size
Area Median Income (AMI)
Property location
Existing HVAC system
Selected equipment
Property type
Program funding
Reservation or pre-approval requirements
For example, SVCE currently provides higher rebates for certain qualifying heat pump HVAC projects for income-qualified customers.
What About HEEHRA?
California’s Home Electrification and Appliance Rebates (HEEHRA) program has provided incentives for qualifying heat pump HVAC projects for eligible households.
However, program availability is not static.
TECH Clean California currently reports that single-family HEEHRA rebates are fully reserved statewide as of February 24, 2026, and that new single-family income-verification applications are no longer being accepted. Certain previously submitted projects remain subject to applicable reservation and waitlist rules.
This is an important example of why homeowners should check current program availability before signing a contract or beginning installation.
Multifamily HVAC Rebates
If you own or manage a multifamily property, additional HVAC incentive opportunities may be available.
Depending on the program, eligible improvements may include:
In-unit heat pump HVAC
Central heat pump HVAC
Common-area HVAC
Duct replacement
Other qualifying energy-efficiency improvements
BayREN’s BAMBE program is one example of a multifamily incentive program currently supporting qualifying HVAC improvements. The program lists heat pump HVAC systems and duct replacement among its eligible HVAC-related upgrades.
Because multifamily programs can have additional eligibility requirements, Rad Air Care US recommends evaluating the property and project requirements before work begins.
How HVAC Rebates Work
Every rebate program has its own rules.
Some programs require an incentive reservation or pre-approval before installation, while others may require documentation after the project has been completed.
A typical process may look like this:
1. Identify Your Property and Utility
The first step is determining which electricity provider and energy programs serve your property. This is important because rebate availability can vary significantly from one community to another.
2. Evaluate Your Existing HVAC System
Your existing heating system can affect which incentives may be available. For example, some programs specifically provide incentives for replacing a gas furnace with a qualifying heat pump.
3. Select Qualifying Equipment
The proposed equipment must meet the requirements of the applicable program.
Requirements may include:
Efficiency ratings
Equipment type
System configuration
Manufacturer or certification requirements
Refrigerant requirements
Installation specifications
Permit requirements
4. Check Availability Before Installation
This is one of the most important steps. Some programs have limited funding or require a reservation before equipment is installed. Do not assume that a rebate will be available simply because the program existed previously.
5. Complete the HVAC Installation
Once applicable program requirements and approvals have been satisfied, the installation can proceed according to the program rules.
6. Submit Required Documentation
Depending on the program, you may need:
Equipment information
Model and serial numbers
Installation documentation
Itemized invoices
Installation photographs
Permit documentation
Proof of project cost
Eligibility documentation
Other program-specific forms
7. Receive the Incentive
Depending on the program, the incentive may be provided as:
A direct payment
Reimbursement
Contractor-applied incentive
Other approved payment method
The timing depends on the program administrator.
Why You Should Check Rebates Before Installing Your HVAC System
One of the most common mistakes homeowners can make is waiting until after installation to ask about rebates.
Some programs require a process such as:
Eligibility → Reservation/Pre-Approval → Installation → Documentation → Rebate
If the required reservation or approval is not completed before installation, the project may become ineligible.
This is particularly important for programs with limited funding or strict installation timing requirements.
Rad Air Care US recommends checking potential incentives before equipment is purchased or installation begins.
Can HVAC Rebates Be Combined?
Sometimes.
Some programs allow incentives to be combined with other rebates or incentives, while others have restrictions on stacking.
Whether incentives can be combined may depend on:
The specific program
Utility provider
Equipment type
Household income
Property type
Existing heating system
Whether another incentive has already been reserved
Funding source
Program-specific stacking rules
For example, TECH Clean California states that HEEHRA rebates may be layered with certain other incentives, while also specifying that a project cannot receive both a TECH incentive and a HEEHRA rebate under the applicable program rules.
Therefore, never assume that multiple rebates can automatically be combined.
The applicable program rules should be reviewed for each project.
Are Federal HVAC Tax Credits Still Available in 2026?
Federal home-energy tax incentives have changed.
The federal Energy Efficient Home Improvement Credit under Section 25C is not available for qualifying property placed in service after December 31, 2025. The IRS confirms that the credit was accelerated to expire at the end of 2025.
This means homeowners should be cautious when reading older HVAC websites that still advertise a $2,000 federal heat pump tax credit for 2026.
Those pages may be describing rules that applied to earlier tax years.
Federal, state, local, and utility programs can also change independently. Rad Air Care US can help identify potential HVAC rebate opportunities, but federal tax matters should be confirmed with the IRS or your qualified tax professional.
HVAC Rebates vs. Tax Credits
Rebates and tax credits are different types of incentives.
HVAC Rebate
A rebate generally provides a financial incentive associated with purchasing and installing qualifying equipment.
Depending on the program, it may be provided as:
A direct payment
Reimbursement
Contractor-applied incentive
Other program-approved payment
Tax Credit
A tax credit is claimed through a tax return and is governed by applicable tax laws.
Tax-credit eligibility can depend on:
Tax year
Equipment
Installation date
Property type
Applicable legislation
Other tax requirements
Because federal tax rules can change, homeowners should confirm current tax-credit eligibility with the IRS or a qualified tax professional.
What Determines How Much You Can Save?
There is no single rebate amount that applies to every HVAC project. Your potential incentive may depend on:
Property Location
Different cities, utilities, and energy providers can offer different programs.
Existing Heating System
Replacing a gas furnace may qualify for a different incentive than replacing electric-resistance heating.
Equipment Selected
The proposed heat pump or HVAC equipment may need to meet specific efficiency and technical requirements.
Household Income
Certain programs provide additional incentives for income-qualified households.
Property Type
Single-family and multifamily properties may have different incentive opportunities.
Project Timing
Some programs have deadlines, reservation requirements, or limited funding.
Program Availability
Funding can be reduced, fully reserved, reopened, or changed during the year.
For these reasons, Rad Air Care US does not promise a specific rebate amount before eligibility and current program availability have been verified.
HVAC Rebates in San Jose, Campbell & Santa Clara
Rad Air Care US is a Campbell-based HVAC contractor serving homeowners and eligible properties throughout the South Bay. We can help you evaluate potential HVAC incentive opportunities when you’re considering a qualifying heating or cooling upgrade.
San Jose, CA
San Jose homeowners may have access to local and regional energy-efficiency incentives depending on their electricity provider, existing HVAC system, equipment selected, and project eligibility.
Campbell, CA
As a Campbell-based HVAC contractor, Rad Air Care US helps local homeowners evaluate heating and cooling upgrades and understand potential rebate opportunities before starting eligible projects.
Santa Clara, CA
Santa Clara properties may have access to different incentive programs depending on the property’s utility provider, equipment being replaced, and other eligibility requirements.
Surrounding South Bay Communities
We also serve eligible properties in nearby South Bay communities.
Because rebate eligibility is location-specific, we recommend evaluating the current programs for your exact property before beginning an HVAC upgrade.
How Rad Air Care US Can Help
Rebate programs can be confusing because each program has different requirements, application procedures, funding limits, and equipment specifications.
When you’re considering a qualifying HVAC project, Rad Air Care US can help you:
Evaluate your existing heating and cooling system
Discuss heat pump and other HVAC options
Identify potential rebate programs to investigate
Review basic equipment eligibility requirements
Explain project factors that may affect eligibility
Help you understand what documentation may be required
Coordinate your HVAC installation when you decide to move forward
Our goal is to help you make an informed HVAC investment and avoid common rebate-related mistakes.
Important: Rad Air Care US does not determine rebate eligibility or approve incentive payments. Final eligibility, incentive amounts, reservations, and payments are determined by the applicable program administrator.
What Should I Do Before Starting an HVAC Upgrade?
If you’re considering replacing your furnace, air conditioner, or upgrading to a heat pump, we recommend:
Before You Sign a Contract
Ask which current HVAC rebate programs may apply to your property.
Before You Purchase Equipment
Confirm that the proposed equipment meets the applicable program requirements.
Before Installation
Determine whether a reservation, pre-approval, or other application is required.
During Installation
Keep invoices, equipment information, photographs, permits, and other required documentation.
After Installation
Complete the applicable rebate claim or reimbursement process within the program’s required timeframe.
Taking these steps can help reduce the risk of missing an incentive because of an eligibility or timing requirement.
Frequently Asked Questions About HVAC Rebates
Are HVAC rebates still available in California?
Yes. Various local, utility, state, and energy-efficiency incentive programs may be available. However, availability varies by location, utility provider, equipment, property type, household income, program funding, and project timing. Some programs may be fully reserved or closed to new applications, while others continue to accept reservations or claims.
Are there heat pump rebates in San Jose?
Potentially. For eligible customers in the Silicon Valley Clean Energy service area, SVCE currently lists rebates for qualifying heat pump HVAC projects. The amount can vary depending on the existing heating system and income eligibility. Your actual eligibility must be confirmed based on your property and project.
Can I get a rebate when replacing my gas furnace with a heat pump?
Potentially. Some current incentive programs specifically support replacing an existing gas furnace with a qualifying heat pump HVAC system. However, equipment requirements, reservations, permits, and other program conditions may apply.
Are there income-based HVAC rebates?
Yes. Some programs provide higher incentives for households that meet specified income requirements. Income limits and verification requirements vary by program.
Can I get a rebate for a new air conditioner?
It depends on the specific program. Not every air conditioner installation qualifies for an incentive. Many current electrification programs place greater emphasis on qualifying heat pump systems.
Can I combine multiple HVAC rebates?
Sometimes. Some programs allow stacking while others restrict combining incentives. The applicable program rules should be reviewed before assuming that multiple incentives can be combined.
Do I need to apply for a rebate before installation?
For some programs, yes. Certain programs require a reservation or pre-approval before installation. Installing equipment before completing the required process can make the project ineligible.
Does Rad Air Care US guarantee my rebate?
No. We can help you identify potential programs and understand the basic requirements, but final rebate approval and payment are determined by the applicable program administrator. Program funding and eligibility can also change.
How much can I save on my HVAC upgrade?
There is no single rebate amount that applies to every project.
Potential savings may depend on:
Location
Utility provider
Existing HVAC system
Selected equipment
Household income
Property type
Current program funding
We recommend evaluating available programs before purchasing equipment.
Do you provide water heater rebate services?
Rad Air Care US focuses on HVAC services, including heating, air conditioning, furnaces, and heat pump HVAC systems.
We do not install or service water heaters and do not offer water-heater rebate services.
How do I find out which HVAC rebates I may qualify for?
Start with your:
Property location
Electricity provider
Existing HVAC system
Proposed HVAC equipment
Property type
Household income, if applicable
Rad Air Care US can help you identify potential HVAC incentive opportunities to investigate before your project begins.
Ready to Explore Your HVAC Rebate Options?
If you’re considering a heat pump, furnace replacement, air conditioning upgrade, or another qualifying HVAC project, don’t wait until after installation to ask about available incentives. Rad Air Care US can help you evaluate your existing system, discuss HVAC options, and identify potential rebate programs to investigate before you move forward.
Rebate programs change, funding can be limited, and eligibility varies. Check before you install.