Heat Pump or Solar First in San Diego? (2026)

An earlier version of this post said SGIP pays $1,000 or more toward a battery. That is not the program a San Diego homeowner will mostly use now. San Diego Community Power pays $250 to $500 per kWh. Read on October 2, 2026.

On this page
  1. Quick quiz: California rebates
  2. The incentives point one way
  3. Practical order
  4. Escondido is different
  5. Common questions
Quick quiz

Quick quiz: California rebates

A few questions from the programs we track. Tap an answer to see why.

1. The most this program can pay: Burbank Water & Power: heat pump water heater. How much?

Burbank Water & Power: heat pump water heater pays up to $1,500. Official page, checked October 2, 2026.

2. The most this program can pay: SMUD Charge@Home. How much?

SMUD Charge@Home pays up to $600. Official page, checked October 2, 2026.

3. The most this program can pay: SMUD partner battery enrollment. How much?

SMUD partner battery enrollment pays up to $6,000. Official page, checked October 2, 2026.

4. The most this program can pay: Pasadena Water & Power: heat pump water heater. How much?

Pasadena Water & Power: heat pump water heater pays up to $500. Official page, checked September 28, 2026.

5. The most this program can pay: LADWP heat pump water heater. How much?

LADWP heat pump water heater pays up to $2,500. Official page, checked October 2, 2026.

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The incentives point one way

For a battery with new solar, SDCP pays $350 per kWh at the market rate and $500 for CARE, FERA or Community of Concern customers. For a battery added to existing solar, $250 and $350. It also pays $0.10 per kWh for evening discharge. For a heat pump, we found no open utility rebate from SDCP or SDG&E. See San Diego solar and battery rebates.

Practical order

Check the no-cost Equitable Building Decarbonization program first if your income may qualify, since it can include a heat pump and a water heater. If not, a solar and battery system has the clearest published incentive. If a gas heater fails, you will have to decide anyway: get three bids and a written load calculation. San Diego's average January low over 2015 to 2024 was 8.8°C, so most of a heat pump's value is cooling and hot water.

Escondido is different

Escondido buys from SDG&E, so the SDCP battery rebate does not apply there. See Escondido.

Common questions

How much does San Diego Community Power pay for a battery?

$250 to $500 per kWh depending on system type and customer type.

Is there a San Diego heat pump rebate?

We found no open utility rebate. Income-qualified homes can get no-cost upgrades.

Does the federal solar credit still apply?

No. It ended after December 31, 2025.

Sources, read October 2, 2026: San Diego Community Power Solar Battery Savings, San Diego Community Power rebates and offers.

Keep learning

Short reads and quick quizzes on how rebate programs work.

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