Your water heater just started leaking. Your air conditioner is making a noise that sounds like a jet engine. You know a replacement is coming, and you worry about the cost.

But living in Murrieta in 2026 gives you a unique advantage. You sit at the intersection of federal tax credits, state incentives, and local utility rebates. If you know where to look, you can get thousands of dollars back on upgrades you need to make anyway.

The landscape has changed since last year. Some popular state funds are currently full, while other federal programs have renewed funding. Navigating this can feel overwhelming. You shouldn’t have to be a tax accountant to fix your home.

This guide breaks down exactly what money is available to you right now. We will look at the federal tax credits that everyone qualifies for. We will explain the current status of the California state rebates. We will also show you the “hidden” rebates from your local water and gas companies that most homeowners miss.

The 2026 Rebate Landscape in Riverside County

It is February 2026. The “gold rush” of early electrification rebates has stabilized. The massive state grants that made headlines two years ago are now operating differently. Some are waitlisted. Others are still wide open.

You need to shift your strategy. Instead of hoping for a single lottery-ticket grant from the state, you should focus on “stacking” multiple smaller incentives. A $2,000 tax credit plus a $1,000 utility rebate plus a $85 water credit adds up to serious savings.

The key is timing. Many of these programs require you to reserve the funds before you start the work. If you install the equipment first and apply later, you might get denied.

Federal Tax Credits (The 25C & 25D): Still the Biggest ROI

The Inflation Reduction Act (IRA) is still the most powerful tool in your budget. These are not rebates. They are tax credits. This means they reduce the amount of federal income tax you owe, dollar for dollar.

The 25C Energy Efficient Home Improvement Credit

This credit is active for the 2026 tax year. It resets every single year. This is a crucial detail. If you replace your AC this year and your water heater next year, you can claim the credit twice.

Heat Pumps and HVAC:
You can claim 30% of the project cost, up to a maximum of $2,000 per year.

  • This applies to Heat Pump Air Conditioners and Heat Pump Water Heaters.
  • The equipment must meet the highest efficiency tier (CEE Top Tier).

General Efficiency Upgrades:
You can claim 30% of the cost, up to $1,200 per year for:

  • New electrical panels (if needed for the new equipment).
  • Energy-efficient windows and doors.
  • Insulation.

The 25D Residential Clean Energy Credit

This credit has no annual cap. It remains at 30% of the total project cost.

  • Solar Panels: If you add more panels to your roof.
  • Battery Storage: If you install a home battery (like a Powerwall) to store energy for peak hours.
  • Geothermal Heating: If you install a ground-source heat pump.

Important Note: The federal credits are non-refundable. You must have tax liability to use them. Always check with your CPA to confirm your eligibility.

State Rebate Status: The Truth About TECH & HEEHRA

You might have heard about the TECH Clean California program. It offers massive rebates for heat pumps. You need to know the current reality.

The “Fully Reserved” Warning

As of January 2026, the general funds for TECH Clean California single-family market-rate incentives are marked as “Fully Reserved” for Southern California Edison customers.

This means the money currently in the pot is spoken for. However, it does not mean you should give up.

How to Join the Waitlist

Projects get cancelled every day. People move, change their minds, or fail to install the equipment in time. When a project cancels, that money goes back into the pot.

  • Action Step: When you hire a contractor for a heat pump installation, ask them explicitly: “Can you submit my application to the TECH waitlist?”
  • Why It Works: If funds open up, you are next in line. It costs you nothing to be on the list.

Equity Rates

There is an exception. If your household income is below 80% of the Area Median Income (AMI) for Riverside County, there are separate “Equity” funds. These funds often have availability even when the general market funds are full. Ask your contractor to check your eligibility based on your zip code and income.

SoCalGas Rebates: Cash for Heating & Water

Most homes in Murrieta still use natural gas. SoCalGas offers reliable rebates that are easy to claim. These are checks sent directly to you, not tax credits.

Tankless Water Heaters

If your old tank water heater bursts, do not just buy the same model. Upgrade to a high-efficiency tankless unit.

  • The Rebate: You can get between $800 and $1,200 depending on the specific model’s efficiency rating (UEF).
  • The Requirement: The unit typically must have a Uniform Energy Factor (UEF) of 0.87 or higher.

High-Efficiency Furnaces

If your furnace is 20 years old, it probably runs at 70% efficiency. New models run at 96%.

  • The Rebate: You can receive $115 to $200 for installing a furnace with an AFUE rating of 95% or higher.

Smart Thermostats

SoCalGas wants you to use less gas.

  • The Rebate: Get up to $75 back when you buy an Energy Star certified smart thermostat (like Nest or Ecobee). This rebate is often available instantly at the checkout counter if you buy from their online marketplace.

Fireplace Inserts

Do you have an open masonry fireplace? It likely sucks warm air out of your house.

  • The Rebate: You can get up to $300 to install a gas fireplace insert. This turns a decorative hole in the wall into an efficient heating source.

Southern California Edison (SCE) Incentives

SCE is pushing hard for electrification. They want you to switch from gas to electric appliances.

Charge Ready Home (The Panel Upgrade Hack)

This is one of the most valuable “hidden” rebates.

  • The Deal: SCE offers rebates of up to $4,200 to upgrade your electrical panel to 200 Amps.
  • The Catch: You must install a Level 2 EV charging station to qualify.
  • The Strategy: Even if you don’t have an EV yet, upgrading your panel prepares your home for a heat pump HVAC system, an electric induction stove, and a future car. The rebate covers a huge portion of the electrical work that you would otherwise pay for out of pocket.

Golden State Rebates

These are “Instant” rebates. You don’t have to mail in a form. You get the discount at the register.

  • Heat Pump Water Heaters: Look for coupons offering $500 off at major retailers like Home Depot or Lowe’s.
  • Room Air Conditioners: Discounts are available for high-efficiency window units or portable ACs.

The “Hidden” Water Rebates (WMWD & SoCal Water$mart)

In Murrieta, your water likely comes from the Western Municipal Water District (WMWD). They partner with the regional SoCal Water$mart program. Water efficiency and energy efficiency go hand in hand.

High-Efficiency Clothes Washers

A washer that uses less hot water saves energy.

  • The Rebate: You can get $85 or more for purchasing a qualifying high-efficiency washer.
  • Repair vs. Replace: If your washer needs a $400 repair, this $85 rebate might tip the scale toward buying a new, reliable machine instead.

Premium High-Efficiency Toilets

  • The Rebate: Get up to $40 per toilet when you replace old 1.6 gallon-per-flush models with premium 1.1 gallon models.

Smart Irrigation Controllers

  • The Rebate: Get up to $80 for a weather-based irrigation controller. It adjusts your sprinklers based on the actual local weather in Murrieta, saving thousands of gallons of water.

How to “Stack” Rebates for Maximum Savings

You do not have to pick just one. You can combine these programs. Here is a real-world example of how a Murrieta homeowner can stack savings for a new HVAC system.

The Project:
You replace your old gas furnace and AC with a high-efficiency Heat Pump system. Total Cost: $14,000.

The Stack:

  1. Federal Tax Credit (25C): You claim 30% of the cost on your taxes. That is a $2,000 credit.
  2. TECH Waitlist: Your contractor submits you to the waitlist. Six weeks later, funds open up. You get a $1,000 check.
  3. SCE Golden State Rebate: You bought a smart thermostat with the system. You get a $75 instant discount.

Total Savings: $3,075.
You lowered the effective cost of your system significantly. Plus, you now have a system that costs less to run every month.

The money is there. You just have to follow the rules to get it. Do not wait until your appliance fails completely. Plan ahead. Check the lists. Reserve your funds.

If you are unsure whether your current system is worth repairing or if you should upgrade to take advantage of these rebates, we can help you assess the condition of your equipment. At Appliance Repair Murrieta, we give you the honest technical advice you need to make the smart financial choice. Reach out today to schedule an inspection.

FAQs: Claiming Your Money in 2026

Q: Did the heat pump rebates expire in 2026?

No. The state-level TECH rebates are currently fully reserved (waitlisted) for general market customers. However, the federal tax credit is active, unlimited in quantity, and guaranteed for the 2026 tax year.

Generally, no. Most HVAC and water heater rebates require the work to be done by a licensed contractor. The rebate application usually asks for the contractor’s license number and the permit number. Simple items like thermostats or window AC units are the exception; you can install those yourself.

Utility rebates (SoCalGas/SCE) typically arrive in 4 to 6 weeks. The federal tax credit is different; you see that money when you file your 2026 taxes in early 2027. It reduces your tax bill or increases your refund.

No. The City of Murrieta does not run its own appliance rebate program. You rely on the county-level programs (Riverside), the utility programs (SCE/SoCalGas), and the water district (WMWD).