Small-to-Medium Business Rebates Available Now!

Get up to $20,000 in rebates to update your old gas equipment to new electric equipment. Plus, get up to an additional $10,000 if your business is a non-profit.

Upgrade to energy efficient all-electric heating and water heating systems!

Attention small to medium-sized businesses! You’re now eligible for support in transitioning to energy-efficient all-electric induction cooking and heat pumps for HVAC and water heating. Traditional gas systems are major contributors to building emissions and indoor/outdoor air pollution. Electric heat pumps offer a clean, safe, and efficient alternative. Act now to claim rebates on new heat pump water heaters and HVAC systems for your business.

What rebates are available?

SVCE rebates are available for small to medium-sized business, schools, and municipal buildings. We accept applications submitted by the Business Owner, Property Owner, Property Manager, Lease Holder, City, School/District, or Contractor (on behalf of Business/Property Owner). If your building uses less than 1,000,000 kWh and 40,000 therms per year, you qualify!

Rebate Amounts

SVCE will award rebates up to the dollar amounts described below. Rebates are not to exceed the project costs.

Qualifying Rebate Measure Description Incentive
Packaged and split system heat pump HVAC (3-20 tons) Equipment $1,800 - $12,000 ($600/Ton)
Residential-style HPWH (40-80 gal) Equipment $2,000/Unit
Commercial-grade HPWH (81-120 gal) Equipment $4,000/unit
Point-of-Use Electric Water Heater Equipment Up to $400/unit
Residential Induction Cooktop or Range Equipment $500/unit
Commercial Induction Cooktop or Range Equipment Up to $5,000
Electrical Upgrades (as needed)* Infrastructure $2,500/installed device
Packaged and split system heat pump HVAC (3-20 tons) Non-profit additional $3,000/unit
Residential or commercial heat pump water heater Non-profit additional $1,000/unit

*does not include Point-of-Use Electric Water Heaters

How it Works

STEP 1: Reserve Your Rebate

Submit a Rebate Application. Have your PG&E account number and a photo of your existing equipment(s) (gas-fired water heater and/or packaged rooftop HVAC unit name plate, gas cooktop or range) handy. You’ll also be asked to review and sign our Agreement. Please note that the Rebate Application must be approved before your equipment is installed.

You will receive a confirmation email when approved and will have 90 days to submit a Rebate Claim.

STEP 2: Install Your New Equipment

  • Equipment: Review the Equipment Specifications to learn which equipment qualifies.
  • Contractor: Contact a local installer who has experience installing all-electric equipment. We recommend you do some research and get a few quotes. You can use any qualified contractor of your choice in order to qualify.
  • Permitting: Make sure to apply for the right building permits with your city or county. Your contractor should be able to help with the permitting process.

STEP 3: Receive Your Rebate

After installing your equipment and receiving your inspection approval, submit a Rebate Claim. You will be asked to provide photos of your newly installed equipment, proof of project costs, and the permit document(s) signed and dated by your City or County inspector to claim your rebate.

After submitting a Rebate Claim, you will receive an email confirmation. We will issue the rebate and mail it to you or to your contractor, whichever is your preference. Please note that it takes approximately four weeks for a rebate check to arrive in the mail.

Helpful Documents

Need More Help?

Send your questions to SVCEPrograms@smud.org or call us at 833-243-4235

Complex Upgrade Scenarios

Are you running into issues with planning, equipment selection, and bid review for your business electrification process? We offer free technical assistance for more complicated projects via our Building Electrification Technical Assistance team.


Frequently Asked Questions

Yes, you can receive up to $20,000 in rebates, and $30,000 if you’re a non-profit.

Any commercial customer or municipal customer who meets the program qualifications: the building being upgraded consumes less than 1,000,000 kWh and 40,000 therms per year.

We accept applications submitted by the Business Owner, Property Owner, Property Manager, Lease Holder, City, School/District, or Contractor (on behalf of Business/Property Owner).

Induction technology offers: faster cooking times, precise temperature control, less ambient heat, and eliminates the emission of harmful gases such as carbon monoxide, making it safer for employees. Learn more about induction.

Please email us at SVCEPrograms@smud.org and we can work with you to find solutions!

After we’ve approved your application and you’ve completed the rebate claim form, the one-time rebate check will be sent to the address you provide in about 4 weeks.

Yes, you can. You will need to submit separate applications for each metered account. There is a $20,000 rebate cap ($30,000 if you are a non-profit) for each metered account.

Yes, as long as each building meets the program qualifications then you’re eligible to receive up to $20,000 per building ($30,000 if you’re a non-profit).

To claim your rebate you will need to submit the following documentation:

  • Proof of project costs, such as, permit fees, materials purchase receipts, contractor’s invoices
  • Photos of existing equipment to be replaced
  • Photos of all newly installed equipment
  • Final permits from Authority Having Jurisdiction (City or County)

To qualify as a “non-profit” an organization must demonstrate receiving “exempt” status under the Internal Revenue Services by meeting the requirements of a 501(c)(3) organization. Public schools and school districts are also eligible for the non-profit adder.

POU Water Heaters are great for low-usage applications that currently have a small gas tank or instantaneous gas water heater serving them. For example, a single lavatory or sink in a small retail or warehouse. They are cheap to install and easy to maintain!