Strong demand leads to expanded funding, new rebate options
DIAMOND BAR, Calif., Oct. 2, 2026 /PRNewswire/ — Following strong public demand and a successful launch, the South Coast Air Quality Management District (South Coast AQMD) Governing Board today approved $60.2 million in additional funding for the GO ZERO Incentive Program.
The expansion builds on the program’s initial $21 million pilot, which has already helped more than 3,000 single-family homes and 700 multifamily units replace gas furnaces and water heaters with zero-emission heat pumps for space and water heating.
The GO ZERO pilot program launched in September 2025, offering rebates to single-family homeowners, multifamily property owners, and small businesses* to switch from gas to zero-emission space and water heating units. Demand quickly exceeded available funding. Multifamily funding was fully reserved within two weeks of the program launch, and single-family funding was exhausted in less than 6 months.
“GO ZERO has shown just how eager our communities are to move away from polluting gas appliances when we make it more affordable to do so,” said South Coast AQMD Governing Board Chair Michael A. Cacciotti. “This expansion lets us build on that momentum and provides this opportunity for more residents across our region.”
The increased funding will provide $20 million each for single-family and multifamily rebates, plus $20 million in funding to allocate to either category based on demand. Other changes to the program include:
- More Options: Solar water heating will now qualify for rebates along with heat pump water heaters.
- 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-$2,000 available in overburdened communities. Multifamily rebates will range from $500-$1,000 per unit, with a $300,000 cap per property. New tiers will also support smaller systems such as mini-split and window heat pumps, making electrification more accessible for smaller homes and apartments.
- More Access to Multifamily Funding: Updated reservation requirements and limits will be implemented to help distribute funding across more properties.
At least 75 percent of single-family and multifamily rebate funding will continue to be prioritized for applicants in overburdened communities. GO ZERO rebates may also be combined with other eligible incentives, helping residents and property owners further reduce the cost of installing qualifying heat pump technologies.
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 furnaces, air conditioners, and water heaters with heat pumps—or qualifying solar systems—can reduce energy use and air pollution.
Applications and updated program details including portal reopening date will be available at www.aqmd.gov/gozero. Rebates will be processed while funding lasts; property owners and small businesses are encouraged to apply early.
*Eligible small businesses include independently owned and operated businesses that meet at least one of the following: 100 or fewer employees, annual gross receipts of $5 million or less, or, nonprofits exempt from federal income tax under Section 501(c)(3).
**Qualified units installed on or after September 4, 2026 will be eligible for Phase 2 rebate funding.
South Coast AQMD is the regulatory agency responsible for improving air quality for large areas of Los Angeles, Orange, Riverside and San Bernardino counties, including the Coachella Valley. For news, air quality alerts, event updates and more, please visit us at www.aqmd.gov, download our award-winning app, or follow us on Facebook, X (formerly known as Twitter) and Instagram.
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SOURCE SOUTH COAST AQMD
