The HEEHRA Waitlist & Your 2026 Strategy: How to Still Get Paid to Go Electric
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The HEEHRA “waitlist” & your 2026 strategy: how to still get paid to go electric
If you’ve been following the news about the Inflation Reduction Act (IRA), you’ve likely heard of HEEHRA (the High-Efficiency Electric Home Rebate Act). It’s the “holy grail” of rebates, offering up to $8,000 for heat pumps and $1,750 for heat pump water heaters.
However, if you’re a Bay Area homeowner looking to upgrade today, there is some news you need to hear: As of February 24, 2026, HEEHRA rebates for single-family homes in Northern California are officially fully reserved.
Wait—is the money really gone?
Yes and no. Because demand was so high, the initial “Phase I” funding for California has been spoken for. New applications are currently being placed on a waitlist. While more funding (“Phase II”) is expected, there is no guarantee on the timeline.
The good news? HEEHRA is only one “layer” of the rebate cake. Even with the waitlist, you can still save thousands of dollars right now by “stacking” other available incentives.
The “state of the plate”: your 2026 rebate options
At Hydroflow, we help our customers navigate the three main layers of savings that are still active today:
1. The federal 25C tax credit (the “sure thing”)
Unlike HEEHRA, this isn’t a first-come, first-served pot of money that can run out. It is a federal tax credit available to anyone with tax liability.
- The reward: A tax credit of 30% of the total project cost, capped at $2,000 per year for heat pump water heaters or HVAC.
- Bonus: You can also claim up to $600 for an electrical panel upgrade if it’s required for the installation.
- Source: IRS Energy Efficient Home Improvement Credit
2. TECH Clean California (the “instant discount”)
This is a state-level program that provides incentives directly to your contractor (that’s us!), which we pass on to you as an instant line-item discount on your invoice.
- The reward: In the Bay Area, market-rate customers can typically see $1,100+ off a heat pump water heater. If you qualify under “Equity” (lower income) brackets, that jump can hit $3,500.
- Current status: Funds are still available but moving fast. We check the TECH budget report weekly to ensure our customers get their slice.
3. BayREN & local utility “kickers”
Living in the Bay Area has its perks. Local programs often add kickers on top of everything else.
- BayREN: Offers $1,000 for switching from gas to a heat pump water heater.
- CleanPowerSF / Peninsula Clean Energy: Often offer an additional $1,000 to $1,500 bill credit or rebate for residents in their service areas.
The comparison: HEEHRA vs. the “stack”
| Feature | HEEHRA (waitlisted) | The 2026 “stack” (active) |
|---|---|---|
| Max savings | Up to $1,750 (water heater) | Up to $4,100+ (combined) |
| Income limits | Strict (under 150% AMI) | None (for tax credit / standard TECH) |
| Availability | Waitlist only | Available now |
| Effort | High (income verification) | Low (contractor handled) |
Why waiting for the HEEHRA waitlist is risky
If your water heater is over 10 years old, waiting for the HEEHRA waitlist to clear is a gamble. As we move closer to the January 1, 2027 deadline (when the sale of standard gas water heaters will be restricted in the Bay Area), two things will happen:
- Labor costs will rise as everyone rushes to beat the deadline.
- Equipment shortages will likely occur, similar to what we saw in 2021.
We covered the phase-out in detail on our blog: The 2027 Bay Area gas water heater phase-out.
Our advice: act while the “stack” is strong
By combining the 25C tax credit ($2,000) with TECH incentives ($1,100) and BayREN ($1,000), many of our customers are seeing $4,100 in total savings today—without waiting on a federal waitlist.
Want a custom “rebate roadmap” for your home? Schedule a 15-minute rebate consultation with the Hydroflow team. We’ll look at your current setup and give you a line-by-line breakdown of how much you can save—whether you’re in San Francisco, Marin, or elsewhere in the Bay Area. We also install and service heat pump and tankless water heaters across the region.
Hydroflow
San Francisco's trusted experts in plumbing, radiant heating, and boiler services. Serving the Bay Area since 2005.
