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Fill out the form and click Calculate to see your personalized heat pump savings estimate.
Annual HVAC cost (current)
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Annual HVAC cost (heat pump)
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Estimated install cost
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Total available rebates
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Net cost after rebates
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Estimates based on California Energy Commission data and current utility rates. This calculator provides an approximation — consult a licensed HVAC contractor for an accurate quote.
Why heat pumps work well in California
California's mild climate — especially in Sacramento and the Central Valley — is ideal for heat pump efficiency. Unlike cold-climate states, our winters rarely drop below freezing, meaning heat pumps can operate at peak efficiency year-round without a backup gas furnace.
Understanding California rebates
SMUD customers can receive up to $2,000 for qualifying heat pump installs. Federal IRA tax credits allow up to $2,000 additional. California's HEERA program provides further assistance for income-qualifying households. Rebates can often be stacked — reducing your upfront cost significantly.
Rising PG&E rates make the case stronger
California electricity rates — particularly with PG&E — have increased significantly over the past decade. Heat pumps are 2–3x more energy efficient than gas furnaces, meaning you move more heat for less cost per unit of energy, partially offsetting high utility rates.
What to ask your HVAC contractor
Ask for a Manual J load calculation (not just a square footage estimate), get at least 3 bids, ask specifically about SMUD or PG&E rebate processing, and confirm the unit qualifies for the federal tax credit. A reputable contractor will handle the rebate paperwork for you.
Frequently asked questions
How accurate is this calculator?
This calculator uses California Energy Commission efficiency data, current California utility rate averages, and published rebate programs to produce an estimate. Real-world savings will vary based on your specific home's insulation, duct condition, local labor costs, and the specific equipment installed. Think of this as a reliable starting range — not a quote. For an accurate number, get 2–3 bids from licensed HVAC contractors.
Does a heat pump work for both heating and cooling?
Yes — a heat pump replaces both your air conditioner and your furnace with a single system. In summer it works like a traditional AC. In winter it reverses the process, pulling heat from outdoor air into your home. In most of California's climate zones, a heat pump can fully replace your gas furnace without any backup heating system needed — even in colder inland areas.
What rebates are available in California?
It depends on your utility provider, but California homeowners are among the best positioned in the country for heat pump rebates. Most major California utilities — including PG&E, SCE, SDG&E, and SMUD — offer rebate programs ranging from $500–$2,000. On top of that, the federal IRA tax credit provides up to $2,000 (30% of equipment cost), and California's HEERA program offers additional assistance for income-qualifying homeowners. Most utilities allow stacking of multiple programs, which can significantly reduce your out-of-pocket cost. Select your utility above to see your specific estimate.
How long does heat pump installation take?
A straightforward replacement (swapping out an existing central HVAC system for a heat pump) typically takes one full day. Installations requiring ductwork modifications, electrical panel upgrades, or new duct runs can take 2–4 days. Spring and fall are the best times to schedule — summer is peak season with longer lead times.
What if my ducts are old or in poor condition?
Old or leaky ductwork can reduce a heat pump's efficiency by 20–30%. Many contractors will inspect your ducts as part of a bid. If duct replacement is needed, budget an additional $2,000–$5,000 but also factor in that the efficiency gains are substantially higher. Some homeowners opt for ductless mini-split systems, which bypass the ductwork issue entirely.
Is now a good time to buy in California?
The current federal IRA tax credit (up to $2,000) is available through 2032, so there's no immediate urgency on that front. However, utility rebate availability and amounts can change annually — if your current system is 10+ years old or approaching end of life, acting before it fails is usually cheaper than an emergency replacement, which limits your ability to comparison shop. California's grid is also increasingly clean, meaning heat pump efficiency advantages grow over time.