South Coast AQMD’s $21 million GO ZERO Pilot Incentive Program provides rebates to help single-family homeowners, multifamily properties, and small businesses replace conventional gas or propane equipment with high-efficiency, zero-emission heat pump space and water heating technologies. Due to high demand and funding depletion, applications for single-family properties closed on September 4, 2026. The small business pilot rebate program remains open and is accepting applications.
So far, the GO ZERO pilot program has incentivized the installation of around 4,000 clean and efficient, zero-emission heat pumps to replace natural gas or propane furnaces and water heaters.
On October 2, 2026, the South Coast AQMD Governing Board approved $60.2 million in additional funding for GO ZERO Phase 2. The expansion will provide $20 million for both single-family and multifamily rebates, plus an additional $20 million to be allocated to either category based on demand. At least 75 percent of single-family and multifamily rebate funding will continue to be prioritized for applicants in overburdened communities.
Phase 2 will expand rebate eligibility to include zero-emission solar water heaters, in addition to heat pump water heaters, and introduce new rebate tiers. Rebates will range from $500 to $1,000 for most single-family households, depending on system type and size, with higher amounts of $1,000 to $2,000 available in overburdened communities. Multifamily rebates will range from $500 to $1,000 per unit, with a $300,000 cap per property. The new tiers will also support smaller systems, such as mini-split and window heat pumps, and updated reservation requirements will help distribute funding across more multifamily properties.
Small businesses can still apply for rebates of $4,000 per qualifying heat pump system. Full initial funding remains available for eligible small businesses, including independently owned and operated businesses with 100 or fewer employees, annual gross receipts of $5 million or less, or qualifying nonprofits exempt from federal income tax under Section 501(c)(3).
GO ZERO incentives may be combined with other eligible rebates and incentives to reduce the cost of installing qualifying technologies. Qualified units installed on or after September 4, 2026 will be eligible for Phase 2 rebate funding.
Zero-emission heat pumps provide both heating and cooling and operate up to three to four times more efficiently than traditional gas systems. Replacing gas or propane equipment with electric heat pump technology can reduce energy consumption and emissions, helping improve local air quality while potentially lowering utility costs.
To learn more or apply, visit aqmd.gov/gozero.