What it costs, what's permitted, and what to ask before you hire.
Last verified: 2026-05-31 · Well-sourced
Incentive snapshot
Section 25C Energy Efficient Home Improvement Credit (electrical panel upgrade)
Expired Dec 31, 2025. For 2023–2025: up to $600 (30% of project cost, capped) when paired with a qualifying 25C electrification project. EXPIRED: This federal credit ended Dec 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025). Installations completed in 2026 or later do not qualify, regardless of when payment was made. For installations completed during 2023–2025, the credit applied to electrical panel upgrades installed consistent with the National Electric Code, with a load capacity of at least 200 amps, installed in conjunction with (and enabling) a qualifying energy efficiency improvement or specific energy property (heat pump, heat pump water heater, central AC, water heater, furnace, boiler, or biomass stove/boiler). The credit fell under the $1,200 annual envelope cap. Homeowners with eligible 2025 installations may still claim the credit on their 2025 federal tax return. Verify with a qualified tax professional.
California Home Electrification and Appliance Rebates (HEEHRA) — single-family
When available, up to $8,000 (households below 80% AMI) or $4,000 (80–150% AMI) for a qualifying heat pump HVAC system, with additional rebates for heat pump water heaters, electrical panel upgrades, and wiring inside the per-household envelope. Phase I single-family funds are currently fully reserved (waitlist active). PROGRAM STATUS: Single-family Phase I is FULLY RESERVED statewide as of 2026-02-24 — new single-family applications are not being accepted and a waitlist is in place. Multifamily applications remain open. Phase II is under development pending DOE approval. HEEHRA is California's implementation of the federal IRA Home Electrification and Appliance Rebates program, administered by the California Energy Commission (CEC) with single-family implementation through TECH Clean California. When open, eligibility requires income-qualified single-family homeowners (or landlords with income-qualified tenants) at or below 150% of Area Median Income; income tiers determine rebate amount (below 80% AMI vs 80–150% AMI). Projects must obtain an approved reservation before installation; rebates only apply to heat pumps installed after the reservation is approved. Income verification is required before a contractor can submit a reservation. Replacement of an existing non-heat-pump space heating system is required for the HVAC rebate. Homeowners should check techcleanca.com and the CEC IRA rebate page for re-opening announcements before signing a contract.
California Equitable Building Decarbonization (EBD) Direct Install Program
No-cost direct-install upgrades for income-qualified households — homeowner does not pay out-of-pocket for covered measures. Measures may include heat pump HVAC, heat pump water heater, induction stove, electrical panel upgrade, and weatherization, subject to a per-household scope set by the regional implementer. Administered by the California Energy Commission (CEC) as the statewide Equitable Building Decarbonization Direct Install Program, with delivery through regional implementers and a separate Tribal Direct Install track. Targets low- and moderate-income households in low-income communities; specific AMI thresholds and per-region eligibility rules are set by the regional implementer rather than statewide. Both single-family homeowners and renters in eligible buildings may qualify, though scope and contractor selection are determined by the implementer (homeowners do not freely choose contractors). The program is funded through California IRA HOMES funding (60% allocation to Direct Install, approximately $130.3M) plus state appropriations. Direct Install retrofits began rolling out in summer 2025. Homeowners interested in EBD should contact the CEC at equitablebuildingdecarb@energy.ca.gov or watch for their regional implementer's launch announcement; the program does not accept open online applications the way TECH or HEEHRA do.
$2,500–$6,500 — Installed cost for a single-family SoCal home upgrading the main service panel from 100A or 125A to 200A overhead service, including new meter main, breakers, grounding, and standard permit fees, pre-incentive. Excludes underground service conversion and utility service-drop relocation.
As of 2026-05-30, SDG&E's default residential plan is TOU-DR1, a three-period time-of-use plan with on-peak / off-peak / super off-peak windows and a 4-9 PM peak. TOU-DR2 offers a simpler two-period structure with the same 4-9 PM peak. Households with EVs, batteries, or heat pumps may benefit from TOU-ELEC (designed for electrified homes), or from EV-specific plans: EV-TOU-5 (whole-house TOU with the lowest overnight pricing for home charging and the Solar Billing Plan) and EV-TOU (a separate-meter option). TOU-DR-P and EV-TOU-5-P are event-based variants that add Reduce Your Use events (up to 18/year) with a $1.16/kWh event adder during 4-9 PM. Plans require 12-month commitments; homeowners should verify the current default and rate cards on the SDG&E pricing plans page before assuming a peak window or rate.