Heating and Colling a division of Gemaire participation in Golden States Water Heating Midstream Program provides you with the ability to offer homeowners with the opportunity to upgrade their inefficient water heaters to more energy-efficient model at a lower cost.

Help your customers save on their monthly bill, reduce their carbon footprint, and increase the value of your home by providing an incentive when replacing a gas storage water heater.

How Does It Work?

After completing an installation, use the Heating and Cooling portal to submit your claim. A copy of your Heating and Cooling invoice, showing the model and serial number of the eligible equipment, is required.

Qualifying Equipment & Incentive Amount

Effective January 1 , 2026

EquipmentEfficiency RequirementsReplacement RequirementsIncentive Amount
Heat Pump Water Heaters240V HPWH >= 45 to <= 55 gal. UEF >= 3.30, replacing 40 gal electric storage WHMust be replacing 40 gallons electric storage water heater$500
Heat Pump Water Heaters240V HPWH >= 45 to <= 55 gal. UEF >= 3.30, replacing 50 gal electric storage WHMust be replacing 50 gallons electric storage water heater$500
*Eligibility Criteria: This incentive requires the replacement of an existing 40–50 gallon electric storage water heater.


EquipmentEfficiency RequirementsReplacement RequirementsIncentive Amount
Heat Pump Water Heaters240V HPWH Fuel Sub < 45 gal UEF >= 3.30 replacing 40 gal natural gas storage WHMust be replacing 40 gallons natural gas storage water heater$600
Heat Pump Water Heaters240V HPWH Fuel Sub > 75 gal UEF >= 3.30 replacing 75 gal natural gas storage WHMust be replacing 75 gallons natural gas storage water heater$680
Heat Pump Water Heaters240V HPWH Fuel Sub 45 to 55 gal UEF >= 3.30 replacing 30 gal natural gas storage WHMust be replacing 30 gallons natural gas storage water heater$700
Heat Pump Water Heaters240V HPWH Fuel Sub 45 to 55 gal UEF >= 3.30 replacing 40 gal natural gas storage WHMust be replacing 40 gallons natural gas storage water heater$700
Heat Pump Water Heaters240V HPWH Fuel Sub > 55 to 75 gal UEF >= 3.30 replacing 40 gal natural gas storage WHMust be replacing 40 gallons natural gas storage water heater$800
Heat Pump Water Heaters240V HPWH Fuel Sub > 55 to 75 gal UEF >= 3.30 replacing 50 gal natural gas storage WHMust be replacing 50 gallons natural gas storage water heater$800
Heat Pump Water Heaters240V HPWH Fuel Sub > 75 gal UEF >= 3.30 replacing 50 gal natural gas storage WHMust be replacing 50 gallons natural gas storage water heater$900
Heat Pump Water Heaters240V HPWH Fuel Sub > 75 gal UEF >= 3.30 replacing 60 gal natural gas storage WHMust be replacing 60 gallons natural gas storage water heater$900
*Eligibility Criteria: This incentive requires the replacement of an existing 40–75 gallon gas storage water heater.


EquipmentHVAC System TypeIncentive
Smart ThermostatAC w/ Gas Furnace$40
Smart ThermostatHeat Pump$40

Program Guidelines

Must be a residential dwelling. Retrofits, replacements, and new construction is eligible.

Must replace a gas or electric tank water heat of specific size.

Homeowners must have an active residential gas account with PG&E, SCE, SoCalGas, or SDG&E to qualify for a gas water heater incentive.

Homeowners must have an active residential electric account with PG&E, SCE, or SDG&E to qualify for an electric water heater incentive.