Commercial Incentives
As of October 31, 2023, TECH Clean California commercial incentives are available to small and large commercial businesses. All commercial projects must be fully installed, and incentive applications submitted by August 31, 2025.
Heat Pump Water Heater Incentives
TECH Clean California offers incentives directly to contractors to support the installation of heat pump water heaters for non-residential customers. This includes installations at any non-residential, non-multifamily facility – for example, retail businesses, office buildings, and schools qualify. Installed heat pump water heaters may only serve the hot water needs of one business or entity; there is no funding for commercial central heat pump water heaters serving the needs of multiple non-residential customers.
Commercial heat pump water heater incentives are only available for electric customers of PG&E, SCE, SDG&E, and SMUD. SMUD customers must be gas customers of PG&E to be eligible. Please refer to the Switch is On Incentive Search tool for up-to-date information by searching a zip code to determine whether commercial incentives are available in a specified area.
Incentives are available only to TECH Clean California-enrolled contractors. To sign up, please visit Switch is On .
Two types of commercial projects eligible for incentives:
- Small Business Unitary: The project uses a residential heat pump water heater and follows the same rules and simple application process as a single family residential project.
- Large Commercial Unitary: The project uses commercial heat pump water heater equipment and follows a reservation process including custom incentives calculations.
Commercial Unitary Incentives
Customer Class | Unitary Heat Pump Water Heater Incentive | Low-GWP Kicker* | Max Incentive per Project |
---|---|---|---|
Large Commercial | $700/kWh** | $200/kWh** | 50,000 |
Small Business | $3,100/unit | $1,500/unit | N/A |
*The low-GWP kicker applies to HPWHs that use refrigerants with a global warming potential (GWP) of 150 or less.
**Incentive dollar amount is per kWh of energy storage capacity. Large Commercial incentive applicants must propose the energy storage capacity of an individual system for program review.
Commercial Budget
Please refer to the Incentive Budget Report to review the total commercial budget as well as remaining funding.

Submit a Large Commercial Reservation Form
To reserve incentive funds for a Large Commercial project, complete the TECH commercial incentive reservation form linked below. If you have any questions, contact tech.commercial@energy-solution.com.
Resources
Contractors should see the resources below, starting with the Commercial HPWH Projects Guide, for additional information on the two commercial project pathways.