South Coast AQMD Pours $60 Million Into Heat Pump Rebate Program

The program’s pilot, launched in September 2025 with $21 million, proved unexpectedly popular. Multifamily property owners claimed their entire allocation within two weeks, while single-family funding dried up in less than half a year. To date, the initiative has facilitated the installation of heat pumps in over 3,000 single-family homes and 700 multifamily units. Governing Board Chair Michael A. Cacciotti noted that the rapid uptake underscores a regional appetite for cleaner heating alternatives when financial barriers are lowered.

This second phase introduces a more flexible financial structure, splitting the $60.2 million into three $20 million tranches—two dedicated to single-family and multifamily sectors, with a third pool reserved for whichever category sees higher demand. Rebate values now range from $500 to $2,000, with higher tiers reserved for residents in overburdened communities, which remain the primary focus for 75% of the total funding. The district is also broadening its scope to include solar water heating systems and smaller, more accessible units like window heat pumps. Interested applicants can track the portal reopening and updated requirements through the agency’s official website.