TECH Clean California single family heat pump HVAC and heat pump water heater incentives are now available.

TECH Clean CA

Time-of-use rates

Your new heat pump water heater or heat pump HVAC brings the most energy-efficient technology into your home. In order to receive a TECH Clean California heat pump water heater incentive, you are required to enroll in a time-of-use (TOU) rate plan with your electric service provider, Most Californians are already on a time-of-use rate, but please check your electric bill to be sure. This is not required for heat pump HVAC incentives, however you could save on your electric bills by moving to a time-of-use rate! Additionally, PG&E, SCE, and SDG&E customers with all-electric space heating, and SCE customers with a heat pump water heater can save on their electric bills by telling their utility about their new electric appliance. Read the FAQs for more information, and don’t miss out on this cost-saving opportunity!

What is a time-of-use (TOU) rate plan?

Californians tend to use a lot of electricity all the same time during the evening hours – generally from 4:00 p.m. to 9:00 p.m. In the evening, when electricity demand “peaks” and electricity supply from solar energy is less available, it’s more expensive to generate enough electricity to meet everyone’s needs.

A time-of-use rate plan offers lower priced electricity during “off peak” hours and higher priced electricity during “peak” hours. This encourages customers to shift electricity usage away from peak hours when electricity prices and fossil fuel power generation are at their highest, to off-peak hours when there is abundant clean and lower cost electricity. This gives you more control over your electricity costs and could save you money, especially if you are able to shift some electricity use to lower priced times of the day.

Family washing hands by kitchen sink

Why is it important?

Your contractor will install your new heat pump water heater to automatically reduce electricity use during the more expensive peak hours while still ensuring you have hot water when you need it. By being on a time-of-use rate, you can take advantage of this smart schedule, and you can further increase your potential savings with smart choices everyday – for example by doing laundry or running your dishwasher at off-peak times.

California electric utilities now offer a variety of  time-of-use rate plans to choose from. The  time-of-use rate plan option that is best for you will depend on when and how much electricity you use. Now that you have received a TECH Clean California incentive for your new heat pump water heater or heat pump HVAC system, you may use more electricity than you used to if your old appliances were not electric (for example, if they used gas). Spending some time to review your options and choose the best rate for you could make a big difference in how much you pay for electricity on a monthly basis. We strongly encourage that you check your provider’s website to compare the specific rates in your area and determine which time-of-use rate would best align with your electricity usage; see the FAQ below for key information and links!

Frequently asked questions

Other TECH Clean California resources

Demand response

Water Heater Rewards Programs