Heat Pump Rebates in Santa Cruz: What CCCE and Your Utility Still Pay in 2026

What 3CE and your local utility actually pay in 2026

If you’ve been thinking about replacing your gas furnace or aging air conditioner, right now might be the most financially rewarding time to make the switch. Central Coast Community Energy (CCCE) pays $2,000 for a qualifying heat pump HVAC installation, or $3,000 if you are income qualified. CCCE replaced this program design on October 1, 2026, and the figures below come from the rebate table it published that day.

At Bellows Plumbing, Heating, Cooling & Electrical, we help Santa Cruz County homeowners navigate these programs every day. We’re going to break down exactly what’s available, who qualifies, and why working with a knowledgeable contractor makes all the difference.

What Is the CCCE Electrify Your Home Program?

Central Coast Community Energy (CCCE) is a community-run electricity provider serving Santa Cruz County and much of the Central Coast. Their Electrify Your Home rebate program pays cash directly to homeowners who replace fossil-fuel heating appliances with electric heat pump alternatives.

The rebates CCCE publishes, effective October 1, 2026, are:

Heat Pump HVAC (Heating & Cooling Systems)

• Standard rebate: $2,000
• Income-qualified rebate: $3,000
• Limit: one project per site per fiscal year, covering up to two outdoor units

Heat Pump Water Heaters

• Standard rebate: $1,000
• Income-qualified rebate: $1,250
• Limit: one project per site per fiscal year

Induction Cooktop or Range

• Standard rebate: $400
• Income-qualified rebate: $500
• Limit: one project per site per fiscal year

Pre-Wiring Rebate (must be claimed alongside a heat pump or cooktop rebate)

• Standard: $500
• Income-qualified: $750
• Limit: one appliance per site per fiscal year. It cannot be paired with a portable heat pump space conditioner

Portable Heat Pump Space Conditioner (renters only)

• Standard: $150
• Income-qualified: $200
• Limit: one project per site per fiscal year

Three of these amounts moved on October 1, 2026. The income-qualified water heater rebate came down from $1,500 to $1,250, pre-wiring came down from a flat $1,000 at either tier to $500 and $750, and the induction cooktop went up from $300 to $400. Heat pump HVAC and the portable unit did not change. If you are working from a figure you saw earlier this year, check it against the list above before you budget.

Rebate amounts shown were read on October 1, 2026 from the table 3CE publishes on its own Electrify Your Home page, headed “Rebates effective October 1, 2026”. 3CE publishes that table as a graphic rather than as text, and the downloadable flyer still linked from the same page has not been updated, so it still shows the previous figures for the water heater, the cooktop and pre-wiring. If you have that flyer and it disagrees with this page, the table on 3CE’s page is the current one. Last reviewed October 1, 2026. Multifamily projects are capped at $100,000, or $150,000 income qualified, for the lifetime of the program. Income qualification is based on CARE or FERA enrollment, which 3CE describes as a household income below 200% of the federal poverty level, or on tax documentation of household size and gross annual income measured against the thresholds 3CE publishes on its eligibility tab.

The Deadline You Need to Know

3CE replaced this program design on October 1, 2026. The program did not end. Applications for equipment installed between August 1, 2026 and September 30, 2027 must be submitted by September 30, 2027, and 3CE processes each application under the program design and terms in force on the day it is submitted rather than the day the equipment went in.

Applications for equipment installed before August 1, 2026 had to be submitted by September 30, 2026, and that date has passed. If your heat pump or heat pump water heater went in during August or September 2026 and you have not claimed yet, you have not missed it. That installation sits inside the current window, and you have until September 30, 2027.

Does Your Home Qualify?

The CCCE rebate program is available to residential customers who are 3CE customers (most Santa Cruz County homeowners are). Here’s what matters for heat pump HVAC eligibility:

• Your existing system must be gas, propane, or another non-electric source, meaning you are replacing fossil fuels with clean electric heat pump technology
• The new unit must be fully electric, ENERGY STAR® certified, and use a dual-stage or variable-speed compressor
• Dual-fuel systems with a gas backup do not qualify
• Proof of permitting is required

Not sure if you’re a CCCE customer? Call 1-877-455-2223 Monday to Friday, 8am to 5pm.

Why Rebates Are Confusing, and Why You Need Bellows

We’ll be honest with you: rebate programs are complicated. The amount you qualify for depends on:

• Your specific home location and utility account
• What equipment you currently have
• What replacement equipment you choose
• Your household income level
• Permitting and installation compliance

This is exactly why Bellows exists. Our comfort advisors walk every homeowner through the full picture before you make any decisions. We work with CCCE and with the other programs that are still open, including MCE in Marin, Silicon Valley Clean Energy, WestLight Energy (formerly Peninsula Clean Energy) and The Switch is On. TECH Clean California is fully reserved and the federal 25C tax credit expired for equipment placed in service after 31 December 2025, so neither is part of the picture for a new installation. We don’t quote rebate amounts over the phone because every situation is different, but we do make sure you don’t leave money on the table.

What Heat Pump Systems Does Bellows Install?

We carry industry-leading equipment built for Central Coast conditions. Our lineup includes Lennox Elite Series heat pumps with variable-capacity inverter compressors, the Friedrich Breeze heat pump system featuring up to 19 SEER2 efficiency, Goodman built by Daikin heat pumps, and Mitsubishi mini-split and ducted systems for homes where traditional ductwork isn’t ideal. All of our recommended systems are ENERGY STAR certified and designed to qualify for current rebate programs.

Santa Cruz’s coastal climate is ideal for heat pump performance. Unlike colder inland climates, our mild winters mean heat pumps operate at peak efficiency year-round, delivering consistent comfort while reducing your energy bills.

How the Process Works With Bellows

1. Call us and schedule a free in-home assessment with one of our comfort advisors
2. We evaluate your current system, home layout, duct condition, and rebate eligibility
3. We recommend the right system and walk you through your combined rebate and incentive potential
4. We handle the installation including permitting, which is required for rebate applications
5. We support your rebate application. Our team helps you gather the documentation checklist required by CCCE
6. You collect your rebate. Applications are processed within 60 days by CCCE

What to Do Next

CCCE replaced its program design on October 1, 2026, and applications for installations through September 30, 2027 are assessed under the design in force on the day you apply. Whether you’re replacing an old gas furnace, adding central cooling for the first time, or upgrading a system that’s struggling to keep up, it is worth confirming the current amount with CCCE before you budget around it.

Bellows Plumbing, Heating, Cooling & Electrical serves all of Santa Cruz County including Santa Cruz, Scotts Valley, Capitola, Watsonville, Aptos, Soquel, and the surrounding communities.

Call Bellows today to schedule your free consultation and find out exactly how much you could save.

Serving Santa Cruz, Monterey, San Benito, Santa Clara, San Mateo, Marin, Sonoma, and Napa Counties.

Sources: Central Coast Community Energy Electrify Your Home Program, 3cenergy.org/rebates/electrify-your-home/