Bay Area/ San Jose

Bay Area Clean HEET Grants Offer Up To $10,500 For Heat Pump Replacements

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Published on February 14, 2026
Bay Area Clean HEET Grants Offer Up To $10,500 For Heat Pump ReplacementsSource: City of San Mateo

The Bay Area Air Quality Management District is literally putting money on the table for anyone ready to break up with their wood or pellet stove. Through its new Clean HEET grant program, homeowners can get help swapping out indoor wood or pellet stoves, inserts or fireplaces for electric heat pumps, with eligible households able to receive up to $10,500 for a heat pump replacement. Extra funds may be available for qualifying low-income residents or for replacing a second device, and the whole thing runs on a first-come, first-served basis while funding lasts. Heat pumps provide both heating and cooling and can cut down on the neighborhood smoke that drives wintertime air pollution.

The application window is open now and closes at 5 p.m. PDT on July 14, with all applications submitted through the Air District’s online system. According to the Bay Area Air Quality Management District, complete applications are processed in the order they are received, and projects must have a formal Notice to Proceed before any work starts. The City of San Mateo has also promoted the announcement on its Facebook page, nudging local homeowners to jump in.

How the money breaks down

Clean HEET funding depends on what you are replacing and how old it is. Base grant amounts for heat pump replacements range from $3,000 to $6,500, tied to the manufacturer's year and type of the existing wood-burning device. Homeowners who are taking out a second qualifying device can get up to an additional $3,000. Low-income households that meet the program’s criteria may qualify for up to $4,000 in extra “plus-up” funding. Put together, the base funding and plus-up options explain the often-mentioned top-end figure of $10,500. The exact amounts, by device type and age, are laid out in the program guidelines and fact sheet.

Who’s eligible and how it works

All Bay Area homeowners within the Air District boundaries can apply if they own the property and actually use their indoor wood or pellet device for heat. Eligible devices include freestanding wood stoves, pellet stoves, fireplace inserts and open-hearth fireplaces that meet the criteria in the guidelines. Applicants start online, upload their information and wait for the Air District to issue a Notice to Proceed. Only after that green light can equipment be ordered or work begin. The program page walks applicants through the process step by step and offers resource documents, plus the application portal.

Why the district is pushing swaps

In the Bay Area’s colder months, wood smoke is a leading source of localized fine particle pollution, known as PM2.5. Those tiny particles can lodge deep in the lungs, which is why the Air District is eager to get older wood-burning appliances out of living rooms and replaced with electric heat pumps. Making that switch cuts neighborhood smoke and the related health risks. State and local wood-smoke reduction efforts, including guidance from the California Air Resources Board, have been moving in the same direction by expanding incentives that encourage homeowners to choose cleaner electric heat.

Tips for applicants

If you are applying, patience and paperwork are both part of the deal. Before any demolition or installation happens, wait for the official Notice to Proceed from the Air District. Then make sure to gather every required document: before-and-after photos, itemized paid invoices, contractor certification forms and a completed W-9 so reimbursement can be processed. All work has to be completed by California-licensed contractors. The program guidelines explain which project costs are eligible, what to expect on permits and how to get help. Questions can be sent to [email protected], and applicants can also call (415) 749-5195.

Because funding is limited and awards are first-come, homeowners who are even thinking about a switch are encouraged to review the eligibility checklist and start an application early. Full details, including program rules, funding tables and resource materials, are available on the Air District’s Clean HEET program page and associated documents.