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ac rebate & Incentives in la

Los Angeles HVAC Rebates and Incentives: A Complete Guide

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In case you haven’t heard, Southern California Edison & the LADWP (Los Angeles Department of Water and Power) offer a number of program rebates and incentives to residential and commercial customers–homeowners, tenants, and landlords.

These programs have been made available to help customers improve the energy efficiency of their air conditioners or heat pumps, save on electric energy costs, and improve the environment. And best of all, these rebates and incentives will continue to provide residential and commercial customers with energy cost savings far into the future.

Rebates are provided not just for heating and cooling systems but for thermostat replacement as well. There’s even an available financing program. You don’t want to miss out on these program deals, so here’s a complete guide to the rebates and incentives offered to increase energy efficiency.

The LADWP is meeting residents and business owners halfway in an effort to see more energy efficient HVACS installed citywide

Rebates and Incentives Offered by the Los Angeles Department of Water and Power for Residential and Commercial Customers

The LADWP offers rebates through several different programs.

  • The Efficient Product Marketplace, where you can shop for a qualifying energy star AC unit and apply for your rebate.
  • Consumer HVAC rebate programs
  • Whole house fan rebate programs
  • For commercial customers, incentive programs to improve energy efficiency through lower rates.

These programs provide a great opportunity for homeowners, tenants, landlords, and commercial building owners to save some money while saving the planet.

Programs for Residential Customers

One thing to remember is that the residential program also includes landlords, not just homeowners and tenants. However, this particular rebate program set does not include commercial customers.

Replace Old Window Units

Residential customers can replace an old room air conditioner with one that’s more energy efficient and be eligible for a $50 rebate. There’s a limit of two units per year. Replacing two units of old window AC with new AC units will not only save money on your electric bill, but you’ll also be much more comfortable.

Replace Old Central AC Systems with Energy Efficient Products

Old systems mean poor energy efficiency. If you have to set your thermostat lower and lower, and you’re spending more and more money on electric bills (and wasting energy), it’s time to replace your unit.

To be eligible for program rebates from the LADWP requires the installation of new AC systems or new heat pumps. Rebates for energy-efficient Central AC pay up to $120 per ton. But first, we have to define some terms because the rebate amount is based on SEER–Seasonal Energy Efficiency Ratio.

SEER rating
SEER shows you how much energy and money your unit is expending annually

What is a SEER rating?

The seasonal energy efficiency ratio (SEER) is calculated by dividing the average cooling output of the system by the total energy used. In short, SEER shows you how much energy and money the air conditioning unit consumes within a single year.

Is it worth replacing your current AC under this program? You’ll realize savings of 20% to 40% of the cost of cooling your home when you purchase energy-efficient units. The higher the SEER rating, the better.

  • If you purchase a 15 SEER air conditioner unit, the rebate is $100 per ton
  • If you purchase an air conditioner unit that is rated 16 SEER or above, you qualify for a $120 per ton rebate.

With air conditioners, the number of tons you need is based on the square foot, so the amount of your rebate will vary. The rebates don’t end there. If you replace your qualifying existing HVAC system with an Energy Star energy-efficient product, you can receive up to a $1,200 rebate as a reward for your commitment to energy efficiency.

To qualify for this rebate program, you must replace your existing AC unit before it breaks. This is called “early replacement.” You must have a 10 ton or less central air conditioner or central heat pump system, be at least one year old, and cannot be non-operational. While the smart thermostat is available to LADWP residential customers, renters can participate, but must get the property owner’s permission.

heat pumpRebates for Heat Pumps

Heat pump rebates are based on both SEER and HSPF – Heating Seasonal Performance Factor. The Heating Seasonal Performance Factor measures the efficiency of your heat pump.

To qualify for the rebates, your heat pump must have an HSPF rating over 8.5 and a SEER rating greater than 15. If your unit qualifies, the rebate is $100 per ton. Again, the number of tons will be determined by the square foot.

whole house fanRebates for a Whole House Fan

To qualify for this rebate, you need permanent installation connected to framing, and the fan must move a minimum of 1,000 cubic feet of air per minute. The rebate for a whole house fan is $200.

thermostatHow About A Free Smart Thermostat?

It’s all in the name of energy efficiency. The LADWP is offering a free smart, learning thermostat to residential customers. Installation is also free! These thermostats actually learn your schedule. It also learns the temperatures you prefer. This means you get energy cost savings.

Zoned systems receive only one thermostat, and if you already have a smart thermostat, you are ineligible. You also will not qualify if you’ve received a free thermostat under other Los Angeles Department of Water and Power programs. If you want to purchase additional thermostats, there are programs for you, too–you may be eligible for a $50 or $75 rebate.

Only residential customers of the Los Angeles Department of Water and Power are eligible for the smart thermostat program. If you’re a renter, you can participate, but you have to obtain the permission of the property owner.

financing optionsHow about Some Help with Financing?

The LADWP has teamed with SoCalGas for something called Go Green Home Energy Financing to save you even more dollars.

You can use the money toward energy-efficient products and devices, such as:

  • Heat pumps
  • Windows and window film
  • HVAC systems
  • LED lighting
  • Pool pumps
  • Insulation
  • Gas water heaters
  • And more

The program benefits include:

  • No upfront costs and available 100% financing
  • Affordable payments
  • Financing is unsecured, so no home equity is required
  • There are no fees or closing costs

This program can also be combined with rebates that further reduce your project costs. You can get more information on this program and apply for help making your AC, appliances, lighting, and other devices more efficient by visiting

fine printThe Fine Print

If you’ve received rebates or incentives from the Los Angeles Department of Water and Power within the last two years, you are not eligible. And tenants of a multi-unit residential property cannot ask for any services directly but must do it through the property manager, who can then call (833) 280-8100 for additional information about the program.

energy efficiencyEnergy Efficiency Rebates and Incentives for Commercial Customers of the LADWP

The LADWP Custom Performance Program pays you incentives for energy savings that come through the implementation and installation of various energy efficiency measures and devices that meet or exceed industry standards.

Rather than offering a rebate, this program offers discounts on electric rates per kilowatt hour (kWh) at various levels depending on the units or devices installed. The savings and the measures that must be taken include

  • $.30 per KWh for high-efficiency HVAC units
  • $.30 per KWh for efficient AC/refrigeration compressors
  • $.30 per KWhAC for economizers that save on electric use in data centers

Electric rate discounts are also available for other measures for appliances such as reach-in refrigerator cases, insulated refrigerator case doors, and the modernization of elevators.

Southern California Edison
Southern California Edison has their own program on how to get residents the most energy efficient units available

Find a Similar Program at Southern California Edison

Southern California Edison offers its own program to help both residential and business customers.

commercial hvac systems los angelesFor business customers, the program options are:

  • A base interruptible program
  • Emergency load reduction program
  • Automated demand response
  • Real-time pricing
  • And more, including a $25 home area network rebate and generator rebates of $200 or $600.

types of ac units offered by UniversalFor residences:

  • Up to $75 rebates for smart thermostats
  • Pre-owned electric vehicle rebates at levels of $1,000 and $4,000
  • A $200 rebate on generators
  • An energy savings assistance program that provides free appliances and services

This utility also offers programs for multifamily properties, a program for mobile home upgrades, budget assistance, and a residential direct install program that offers no-cost upgrades for eligible single-family homes.

golden state rebates
Check out Golden State Rebates today and find out how much you may receive towards your next HVAC!

State Rebates

The State of California, through its Golden State Rebates program, offers coupons to save money and improve energy efficiency for heating and cooling. These coupons are redeemable immediately at participating retailers. The state also offers its own programs that include tax credits, rebates, and incentives. Find out more about these here.

Picture of Peri T.
Peri T.

I'm Peri, the owner of Universal Heating & Air, and I'm here to save the day (or at least your AC). Our team got the skills and knowledge to handle any AC repair, installation, or maintenance job. My goal is to make sure my customers are comfortable, no matter the weather. So, if you need superheros for your AC problems, look no further!