You're Not Being Cheated
If you've seen a friend or neighbor in Los Angeles or Sacramento get a much bigger heat pump rebate, it's natural to wonder if SDG&E is just worse. It isn't a scam or an oversight. There's a real reason, and it comes down to climate.
The Real Reason: Heating Degree Days
Utilities size rebates around how much energy a heat pump is expected to save. That's measured partly using something called "heating degree days" (HDD) — basically, a number that tracks how cold and how long your winters are.
- San Diego (SDG&E): roughly 1,100–1,200 HDD — mild winters
- Los Angeles (LADWP): roughly 2,100 HDD
- Sacramento (SMUD): roughly 2,200 HDD
A heat pump replacing gas heat in Sacramento saves a lot more energy over a winter than the same unit would in San Diego, simply because San Diego needs so much less heating to begin with. Utilities calibrate their rebate dollars to match that expected savings. It's not that SDG&E values you less — it's that the math is different in a mild climate.
Where SDG&E Actually Leads
San Diego's SGIP battery storage program is comparatively strong. If your neighbor in Sacramento is bragging about their heat pump rebate, you may be able to counter with a better battery deal. Pairing solar with a home battery, rather than leading with a heat pump, is often the smarter play in SDG&E territory.
What to Do With This
- Don't skip the heat pump rebate — $250–$500 plus the smart thermostat rebate is still free money.
- Put your bigger budget decisions toward solar + battery, where SDG&E's incentives are stronger.
- If you're also replacing your AC (not just heating), a heat pump still makes sense on cooling savings alone.
See the full comparison: Heat Pump or Solar in San Diego? and the complete rebate list: SDG&E Rebate Guide. Source: sdge.com/rebates.