Quick quiz: California rebates
A few questions from the programs we track. Tap an answer to see why.
Two utilities, two jobs
San Diego Community Power (SDCP) supplies the electricity to the City of San Diego, Chula Vista and several other cities, and runs the rebates. SDG&E delivers the power and runs its own programs. Escondido is not an SDCP member, so its customers deal with SDG&E alone. Neither lists an open cash rebate for a heat pump or heat pump water heater on the pages we could read.
What SDG&E lists
SDG&E's rebates page lists retail coupons: $75 for an ENERGY STAR smart thermostat, $40 for an Amazon model, $500 for a heat pump water heater replacing an electric one, and $15 for a room air conditioner. The same page says the retail offerings have ended, so we do not count them (SDG&E rebates). Its home electrification page notes a billing change in October 2025 that lowered the delivery price per kWh by about 10%.
What Community Power pays
SDCP's Solar Battery Savings program pays $250 to $500 per kWh of battery depending on whether the system is new, and on the customer type, plus $0.10 per kWh for discharging in the weekday evening window. Smart Energy Rewards pays $50 for each approved thermostat or heat pump water heater (up to three of each) plus yearly payments, and EV Flex Connect pays $50 plus $5 a month. Income-qualified households in identified communities can get no-cost upgrades, including heat pumps, through the Equitable Building Decarbonization program. See San Diego rebates.
What this means for your choice
If you are weighing a heat pump against solar and a battery, San Diego's published incentives favor the battery side. For a heat pump, check the no-cost program first if your income may qualify, and otherwise budget without a rebate and get three bids. San Diego's average January low over 2015 to 2024 was 8.8°C, so a heat pump's cooling benefit in summer is part of the case.
Common questions
Does SDG&E have a heat pump rebate?
Not that we found. Its rebates page lists retail coupons and says the retail offerings have ended.
Does San Diego Community Power pay for batteries?
Yes, $250 to $500 per kWh of battery, plus $0.10 per kWh for evening discharge.
Who runs rebates in Escondido?
SDG&E. Escondido is not an SDCP member.
Sources, read October 2, 2026: SDG&E rebates, San Diego Community Power rebates and offers, San Diego Community Power Solar Battery Savings.
