09/18/2025 | Press release | Distributed by Public on 09/18/2025 12:43
20,000 heat pump installs deliver up to $500 in yearly savings per home
SACRAMENTO, Calif. - SMUD and its customers have achieved a major clean energy milestone for the Sacramento region. Through SMUD's Advanced Home Solutions program, more than 20,000 gas-fired space and water heating systems have been replaced with high-efficiency electric heat pumps. These upgrades are equivalent to converting 10,000 homes to all-electric living and cut 20,000 tons of carbon emissions each year -the same as taking 8,000 gas-powered cars off local roads.
Households that have made the switch from gas to electric using heat pump technology are saving an average of $500 per year on utility bills - money that stays in the local economy. Together, customers are keeping $5 million annually in their pockets to boost the local economy.
"Once my old gas water heater started having issues, I decided to take advantage of SMUD's rebate for a heat pump," said George El-Chemali, a SMUD customer. "Switching over has been nothing but amazing -it works better, it's more affordable and it feels good knowing the change is better for the environment."
"Every day, more Sacramento families are discovering that heat pumps can heat and cool their homes more affordably while helping our community breathe cleaner air," said Rachel Huang, director of Distributed Energy Solutions. "SMUD continues to show that clean energy isn't just good for the environment -it's good for family budgets, too."
Heat pumps work like a two-way air conditioner -heating in the winter and cooling in the summer -all powered by electricity instead of gas. Heat pump water heaters use the same technology to deliver hot water while using up to 80 percent less energy than traditional models.
Despite their growing popularity, many customers are just learning about heat pump appliances, which can dramatically reduce customers' energy bills and carbon footprints. SMUD offers rebates to help more customers make the switch to heat pump technologies:
Beyond heat pumps, SMUD offers rebates for induction cooktops and home EV charging. So far, residential customers have installed 8,000+ chargers and 2,300+ induction cooktops with SMUD support.
For more information, visit smud.org/GoElectric.
SMUD can provide access to its Smart Energy Home, which showcases a complete setup of home appliances and heat pump technology. Technical experts -along with a SMUD customer who has made the switch -are available to explain how these systems operate and why they make sense for Sacramento's homes and climate.
As the nation's sixth-largest, community-owned, not-for-profit electric service provider, SMUD has been providing low-cost, reliable electricity to Sacramento County for more than 75 years. SMUD is a recognized industry leader and award winner for its innovative energy efficiency programs, renewable power technologies and for its sustainable solutions for a healthier environment. In 2023, SMUD's power supply was, on average, 78 percent carbon free, and SMUD has a goal to reach zero carbon in its electricity production by 2030. SMUD's rates and customer bills are consistently among the lowest in California, and are today, on average, more than 50 percent lower than its neighboring investor-owned utility. For more information on SMUD's Zero Carbon Planand its customer programs, visit smud.org.