SDG&E Rebates & Electrification Incentives for San Diego Remodels (2026)

Short version for 2026: most of the large electrification incentives San Diego homeowners relied on in 2024 and 2025 are now closed or waitlisted for single-family homes. The federal heat pump and solar tax credits ended on December 31, 2025. TECH Clean California's single-family heat pump incentives closed on November 14, 2025. The state HEEHRA rebates were fully reserved statewide on February 24, 2026, and Energy-Smart Homes' 2026 funding was fully subscribed on April 20, 2026. This guide covers what still exists, what it pays, how to claim it and how we plan electrification remodels around it. We checked program status against the official program pages on October 9, 2026.

Program status at a glance (checked October 9, 2026)

What SDG&E still offers for electrification remodels

SDG&E's home electrification page no longer leads with cash rebates. The programs it does list can still save real money on a remodel, as long as you plan for them early:

• Common Facility Cost Treatment (CFCT). If you replace gas appliances with electric ones and the house needs a bigger service from SDG&E, CFCT lowers what you pay for the utility-side upgrade. Many older North Park, Clairemont and La Mesa homes still run on 60–100 amp service, and there the utility side is often the slowest and most expensive part of the job. We request CFCT during design, not after drywall.
• My Project Center. This is SDG&E's portal for service upgrade requests. Your electrician or general contractor opens the request. Expect a field visit and a work order before SDG&E schedules the cut-over.
• Customer Home Electrification Readiness Program (CHERP). A free SDG&E service that helps you find and combine the incentives you actually qualify for.
• GoGreen Financing and On-Bill Financing. Two ways to finance efficiency and electrification upgrades. They reduce the cash you need up front, not the total cost, so compare their rates with a HELOC or your remodel loan.
• TOU-ELEC rate. A rate plan for homes with heat pumps, EVs or batteries, with super off-peak hours. SDG&E introduced the Base Services Charge in October 2025, which lowered the delivery price per kWh by about 10%. That makes heat pumps and induction cheaper to run.

Energy-Smart Homes: the biggest whole-home incentive (when funded)

Energy-Smart Homes is the CPUC-funded statewide program for converting an existing home to all-electric. In SDG&E electric territory it pays $4,250 per single-family home. On top of that it pays a $250 bonus for a heat pump dryer and up to $1,000 for electrical infrastructure work, capped at what that work actually costs. The program page lists the same amounts for 2027.

The catch is that it covers whole-home conversions only. To qualify, the project must include:

• Heat pump space heating, either a mini-split or a central heat pump rated SEER 15+ and HSPF 8.7+. Systems that use electric resistance as the main heat source do not qualify.
• A heat pump water heater rated NEEA Tier 2 or higher.
• Induction cooking. Homes that already cook with electric qualify without switching to induction.
• An electric or heat pump clothes dryer.
• Every gas line to the building capped and the work done by a licensed contractor. You also can't take money from another CPUC resource-funded program for the same measures, and conversions from propane are not eligible.

How to claim: submit the program's online application before the work starts. Funding for 2026 is fully subscribed, so new applications go on the waitlist. Treat this incentive as a possible bonus, not money to build your budget around.

HEEHRA and HOMES: the state IRA rebates

HEEHRA launched in October 2024 through TECH Clean California and paid income-qualified homeowners up to $8,000 toward a heat pump. The California Energy Commission reports that single-family HEEHRA funds have been fully reserved statewide since February 24, 2026, and income verification is paused. If you join the waitlist, read this rule carefully: a waitlisted project only qualifies if the heat pump is installed after the reservation is approved. If you install first, you lose the rebate.

HOMES, the companion program that pays based on measured energy savings, is not available to homeowners yet. We'll update this page when either program reopens.

Income-qualified? Start with ESA

SDG&E's Energy Savings Assistance program provides energy-efficiency upgrades at no cost to income-qualified homeowners and renters. It covers single-family homes, mobile homes and buildings with 2–4 units. You can qualify by household income (limits depend on household size and are updated each June 1) or by being enrolled in a program such as Medi-Cal, CalFresh, WIC, LIHEAP, SSI or CalWORKs. Apply with SDG&E before you sign a contract for any overlapping work.

What electrification upgrades cost in San Diego

These are the installed price ranges we see on San Diego remodels. Your number depends on panel capacity, attic and crawlspace access, and how far the new equipment sits from the existing gas appliance.

Electrification costs least when it's planned as part of the remodel. With the kitchen walls open, running the range circuit costs a fraction of what it does after the finishes go in. If an ADU or EV charger already calls for a panel upgrade, size that panel once for everything.

How we'd sequence a 2026 electrification remodel

1. Run a load calculation first. It tells you whether you need a service upgrade at all. Many 100A homes can go all-electric without one by using a heat pump water heater that runs on 120V or a shared circuit, plus load management.
2. Open SDG&E requests early. If the job needs service work, request it through My Project Center and ask about CFCT before construction starts. The utility's schedule, not the construction, is usually what takes longest.
3. Check program status the week you sign. Both Energy-Smart Homes and HEEHRA require approval before installation, so join their waitlists before anything is installed.
4. Bundle permits. In the City of San Diego, put the mechanical, electrical and plumbing work on one remodel permit where you can, so the inspections line up.
5. Keep every document. That means AHRI certificates, model numbers, the final permit sign-off and invoices. Every program we've worked with asks for them, often months later.

Del Mar spotlight: coastal electrification reality

Del Mar remodels have a constraint inland projects don't: the California Coastal Commission can weigh in on exterior changes, including where outdoor heat pump condensers go and where electrical conduit runs on a home's facade. If your project is west of Interstate 5 or in a coastal overlay, plan the equipment location during design, not after permits. The salt air also means we spec marine-rated disconnects and coated condenser coils, or you'll replace them sooner than the warranty suggests.

What other contractors won't tell you

• Rebates can change the scope. A contractor who bids the job without checking current program rules may size equipment that disqualifies you from the incentive. We check program status before we finalize the equipment list.
• The utility side can cost more than the equipment. A heat pump water heater is a few thousand dollars; the SDG&E service upgrade to feed it can be the same again. Good contractors price both, not just the appliance.
• Waitlists are real. Several 2026 programs are fully subscribed. A contractor who promises you a rebate without confirming your reservation number is guessing.
• Not every electric upgrade needs a 200A panel. Some homes need one, but many don't. A load calculation is cheaper than an unnecessary panel swap.

Mistakes I see all the time

• Installing first, applying second. Most programs reject work completed before approval. Apply or reserve before the equipment ships.
• Ignoring the condensate drain. Heat pump water heaters produce water that has to go somewhere. Skipping this detail means a puddle in the garage six months later.
• Buying the wrong heat pump size. Oversized systems short-cycle and don't dehumidify. We run a Manual J load calc so the unit matches the house.
• Forgetting the gas cap. Whole-home electrification programs require every gas line to the building capped. Leaving a grill line or fireplace stub can disqualify the rebate.

Planning a kitchen, ADU or whole-home remodel and want the electrification work priced with it? Cali Dream Construction (CSLB #1054602) has been building in San Diego since 2019. We'll run the load calculation, check current program status and give you one plan that covers both the remodel and the electrical work.

Related guides

• HVAC Replacement Cost in San Diego
• Gas vs. Electric Water Heaters in San Diego
• Tankless Water Heater Cost in San Diego
• Home EV Charger Installation in San Diego
• Dual-Pane Windows in San Diego

Sources checked October 9, 2026: IRS, Energy Efficient Home Improvement Credit (irs.gov); California Energy Commission, Inflation Reduction Act Residential Energy Rebate Programs (energy.ca.gov); TECH Clean California incentives (techcleanca.com); California Energy-Smart Homes, Alterations (caenergysmarthomes.com); SDG&E Rebates and Home Electrification pages (sdge.com); SDG&E Energy Savings Assistance (sdge.com).