Upgrading your heating and cooling system is a major investment. The good news? In 2026, there are still massive financial incentives available to help Fullerton homeowners switch to high-efficiency equipment. From federal tax credits to local SCE programs, you could be sitting on thousands in savings.
1. The Federal 25C Tax Credit (Up to $2,000 Yearly)
The most reliable way to save in 2026 is through the Energy Efficient Home Improvement Credit. Unlike rebates that can run out of funding, this is a tax credit you claim on your annual filings.
- Heat Pumps: Claim 30% of the project cost, capped at $2,000 every year.
- High-Efficiency Furnaces: Even if you aren’t ready for a heat pump, a 95% AFUE gas furnace qualifies for a $600 credit.
- Electrical Panels: Upgrading your panel to support a new heat pump can net you an additional $600.
2. Southern California Edison (SCE) Incentives
As a Fullerton resident, SCE offers several “instant” ways to lower your costs:
- Market Rate Incentives: SCE provides $1,000 to $1,500 for heat pump retrofits depending on your previous system.
- Smart Thermostats: Get an instant $75 bill credit for enrolling in the Smart Energy Program.
- TECH Clean California: As a TECH-certified contractor, Legit Air can pass these state-funded discounts directly to you on your invoice.
3. SoCalGas Energy Efficiency Rebates
If you are sticking with gas, SoCalGas still offers great tiered rebates for 2026:
- High-Efficiency Furnaces: Rebates up to $25/kBtuh for ENERGY STAR certified units (92% AFUE or higher).
- Tankless Water Heaters: Switching to a high-efficiency model can net you $80 to $1,500.
Critical Update: HEEHRA & Waitlists
You may have heard of the $8,000 “point-of-sale” rebates. As of January 2026, HEEHRA funds for single-family homes in Southern California are fully reserved. However, we are currently placing eligible customers on a Waitlist. If existing reservations aren’t used by the February 28 deadline, these funds will be released back to the pool.
How to Qualify for 2026 Savings
- Use an AHRI-Matched System: Your indoor and outdoor units must be a certified match to meet the efficiency “Tiers.”
- License is Key: You must use a licensed C-20 contractor (like Legit Air) to qualify for utility rebates.
- Get Your AHRI Certificate: We provide this certificate at the end of every install for your tax records.
Don’t leave money on the table! Call Legit Air at (714) 213-9864 today for a free estimate and a full “Rebate Audit” for your Fullerton home.