$3,000
Variable-capacity conversion
Replace a gas furnace and AC with a qualifying variable-capacity electric heat pump.
(916) 390-0025
2026 REBATE GUIDE • SACRAMENTO HOMEOWNERS
SMUD HVAC & Heat Pump Rebates
Planning a heating and cooling upgrade? Explore SMUD rebates of up to $3,000 per qualifying HVAC system. Capital City Comfort can discuss your existing equipment, comfort goals and proposed replacement so you can plan your next step.
$2,000
Two-stage conversion
Replace a gas furnace and AC with a qualifying two-stage electric heat pump.
$1,000
Heat pump replacement
Replace an existing electric heat pump with a qualifying higher-efficiency two-stage or variable-capacity system.
These are alternative HVAC rebate categories, not three rebates added together for one system. Amounts reflect the SMUD measure sheet dated February 1, 2026 and official HVAC information checked October 10, 2026.
Equipment and duct requirements
The supplied SMUD sheet calls for AHRI-certified two-stage or variable-capacity equipment. Gas-to-electric projects replace the existing gas furnace and air conditioning with an electric heat pump. Electric-to-electric replacements must improve efficiency and meet the applicable conversion standards.
- Duct leakage: 10% or less for existing ducts; 5% or less for new ducts, according to the measure sheet.
- SMUD’s current guidance includes a 15.2 SEER2 minimum, a Wi-Fi-enabled programmable thermostat and applicable Title 24/HERS verification. New ducts must meet R-8 insulation requirements.
- Qualifying mini-splits must serve the entire home. Equipment selection and installation must satisfy the complete current program rules.
Who can qualify?
An active SMUD account and an individually SMUD-metered home are required. Eligible housing includes single-family homes and multifamily properties with up to four units, each individually metered. Required permits, inspections and local code compliance apply.
Installation and rebate submission must be handled by a qualifying participating SMUD Contractor Network contractor. Confirm participation, project eligibility and available funding before committing to work.
How the rebate process works
- Identify your current heating fuel, equipment and SMUD service address.
- Confirm the qualifying contractor, system and rebate category before installation.
- Complete the qualifying installation and required verification. The participating contractor prepares the application for your signature and submits it.
- Review how the rebate will be paid or credited in your written proposal.
Related efficiency upgrades
The February 2026 sheet also lists HPP-only Seal & Insulate measures: $2,000 for air sealing and insulation, plus listed $500 new-duct and $500 deep-buried-duct measures. Duplex, triplex and fourplex amounts are $1,000, $250 and $250 respectively. These require the full package standards, including R-38 attic insulation and duct leakage to outside of 5% or less.
Go Electric circuit and panel incentives may also apply to qualifying conversion projects. These have separate electrical and whole-home readiness requirements; they are not automatic additions to an HVAC rebate.
Plan your upgrade with Capital City Comfort
Serving local families since 2016, we offer heating and cooling services with upfront flat-rate pricing. Tell us about your current system and the rooms that need better comfort. We can discuss the scope of your project and the questions to resolve before installation.
Official SMUD information
SMUD heating and cooling rebates • SMUD system requirements • SMUD Contractor Network
Rebates are administered by SMUD and depend on program approval, funding and current requirements. This overview does not guarantee eligibility or payment. SMUD rebates are separate from Capital City Comfort coupons; do not assume they can be combined. Confirm all applicable terms before authorizing work.