Heat Pump Installation in Sacramento

How does a heat pump work?

A heat pump moves heat instead of making it. In summer it pulls heat out of your house like a central AC. In winter it reverses, collecting heat from the outdoor air and bringing it inside. The Department of Energy says heat pumps can deliver up to three times more heat than the energy they use, and can cut electricity use for heating by about 50% compared with electric furnaces or baseboard heaters.

Heat pumps come in ducted versions that connect to your existing ducts and ductless mini splits that don't need ducts at all. Variable-speed, or inverter, models speed up and slow down to match the load instead of switching fully on and off, and SMUD pays its highest rebate for variable-stage systems.

What is a ductless mini split?

A mini split pairs an outdoor unit with one or more indoor heads mounted on a wall or ceiling, linked by refrigerant lines, with no ductwork needed. ENERGY STAR says they suit homes without ducts, additions or outbuildings where extending ducts is hard, and rooms with hot or cold spots. The Department of Energy notes they offer flexibility for zoning or heating and cooling individual rooms.

SMUD's rebate rules require a mini split to serve the entire home to qualify, so a single-room head may not earn a rebate. California still requires a permit for mini split installs.

What heat pump rebates are available in Sacramento in 2026?

As of November 2026, SMUD's rebate page lists:

• $3,000 for a variable-stage heat pump that replaces gas heat.
• $2,000 for a two-stage heat pump (15.2 SEER2 minimum) that replaces gas heat.
• $1,000 for an electric-to-electric upgrade to a multi-stage heat pump.
• Up to $4,000 in Go Electric rebates for a smart panel, subpanel, or new circuit; the subpanel and circuit rebates require a gas-to-electric conversion.
• Rules: a SMUD Contractor Network installer submits the rebate, the home must pass Title 24 HERS verification, new ducts must be insulated to at least R-8, and funding is limited.

Which heat pump incentives have ended?

SMUD raised its rebates in February 2026 partly to offset programs that ended. The IRS says the federal 25C credit, worth up to $2,000 a year for heat pumps, covered equipment placed in service through 2025. TECH Clean California says its single-family heat pump incentives were reserved statewide as of November 14, 2025, and the federal HEEHRA rebates were fully reserved as of February 24, 2026, with a waitlist. PG&E's and Roseville Electric's residential rebate pages did not list a heat pump HVAC rebate when checked in November 2026.

What does California require for a heat pump install?

Under the 2025 Energy Code, a heat pump installation needs a building permit, duct sealing and leakage testing by an ECC-Rater, and refrigerant charge verification. For heat pumps, the charge check applies in every climate zone, along with a minimum airflow check. If airflow isn't verified at 350 cfm per ton or more, the code limits how oversized the new system can be.

Because a heat pump handles heating too, the contractor should size it for both your heating and cooling loads with a Manual J calculation. Ask the installer to check your electrical panel as well, since a switch from gas may need a new circuit.

Is a heat pump a good fit for a Sacramento home?

Sacramento winters are mild by national standards. NOAA's 1991–2020 normals show an average January low of about 39°F at Sacramento Executive Airport and 41°F near downtown. ENERGY STAR certifies cold-climate heat pumps for performance down to 5°F, far colder than valley winters.

The bigger questions are usually your ducts, your electrical panel, and whether a rebate applies. Foothill homes at higher elevations can see colder winter nights, so ask about cold-weather performance there.

Frequently asked questions

Available across the Sacramento area

• Sacramento
• Elk Grove
• Roseville
• Folsom
• Citrus Heights
• Rancho Cordova
• Rocklin
• Lincoln
• Davis
• West Sacramento
• Woodland
• El Dorado Hills
• Carmichael
• Fair Oaks
• Orangevale
• Arden-Arcade
• Antelope
• North Highlands
• Granite Bay
• Gold River
• Rio Linda
• Galt
• Auburn
• Cameron Park
• Placerville
• Loomis