Bay Area Clean HEET grant program opens applications for expanded funding—even as clean-energy tax credits face elimination
The Bay Area's Clean HEET program is now accepting applications through July 31, 2025, with expanded rebates for replacing wood-burning heaters with electric heat pumps—just as Trump’s federal legislation threatens to cut all major clean-energy tax credits.
The Bay Area Air Quality Management District has officially opened the application window for its Clean HEET program, offering up to $13,500 in combined incentives for residents who replace wood-burning heating systems with electric heat pumps—or decommission wood-burning systems entirely. The application deadline is 5:00 PM PT on July 31, 2025, or until all funds are awarded.
This air district update was posted just days before President Trump signed the One Big Beautiful Bill—federal legislation that would eliminate nearly every clean-energy tax credit currently available under the Inflation Reduction Act (IRA). As we covered in our recent analysis, those federal credits—including rebates for EVs, home batteries, solar panels, and energy-efficient appliances—could be gone by 2026.
That makes grant programs like Clean HEET all the more urgent for homeowners looking to electrify while incentives still exist.
Pat Sharyon
What Is the Clean HEET Program?
The Clean Heating Efficiently with Electric Technology (Clean HEET) program is a locally administered rebate initiative designed to replace polluting wood-burning heat sources with clean, electric alternatives. With $2 million in total funding, the program aims to cut wintertime air pollution across the Bay Area—especially in neighborhoods that are historically overburdened by environmental harms.
The rebates can be used to install an electric heat pump or decommission a wood-burning heater without replacement, depending on the situation.
How Much Money Can You Get?
Funding amounts vary based on the age and type of the existing device and the applicant’s income level. Here’s a breakdown:
Base Incentives
| Project Type | Device Age | Max Funding |
|---|---|---|
| Replace wood stove or insert with heat pump | 2014 or earlier | $6,500 |
| Replace wood stove or insert with heat pump | 2015–2019 | $3,000 |
| Replace pellet stove or insert | 2014 or earlier | $3,000 |
| Replace open-hearth fireplace | Any | $6,000 |
| Second qualifying device (if applicable) | 2019 or earlier | +$3,000 |
| Decommission-only project | 1987 or earlier | $1,000 |
Additional “Plus-Up” Bonus
Applicants enrolled in qualifying low-income programs (like CalFresh, SSI, LIHEAP, or WIC) may be eligible for an additional $4,000, potentially pushing total rebates above $13,000 per household.
Who’s Eligible?
To qualify:
- You must be the legal homeowner of a property located within the Bay Area Air District.
- Your home must contain a wood-burning or pellet device used regularly for heat, manufactured before 2020.
- You must burn at least 0.1 cord of wood per year (roughly a 3 ft x 4 ft pile of logs).
- Your project must not be underway before approval is granted.
- Only licensed contractors may perform work.
Additional priority is given to homes in:
- West Oakland
- East Oakland
- Richmond–San Pablo
- Bayview Hunters Point/Southeast San Francisco
- Other disadvantaged communities as identified by California’s priority population mapping tools.
What Counts as an Approved Project?
Projects must involve either:
- Installing a ducted or ductless electric heat pump system (no electric fireplaces or baseboard heaters), or
- Permanently decommissioning a qualifying wood-burning or pellet stove/fireplace—making it inoperable and sealing it off.
Homeowners cannot install another wood-burning system for at least five years, and the removed device must be destroyed and recycled by a licensed contractor.
How to Apply
- Apply online at: www.baaqmd.gov/WoodSmokeGrant
- Submit:
- Photos of the device to be replaced
- A quote from a licensed contractor
- Proof of participation in low-income assistance (if applicable)
- Wait for approval and your Notice to Proceed
(⚠️ Do not start any work before receiving this) - Complete the work within 120 days
- Submit all documentation for reimbursement
Why This Matters Now
The Clean HEET program was already one of the most generous local electrification rebates in the country—but with the One Big Beautiful Bill threatening to erase overlapping federal clean-energy credits by 2026, this year may be the last chance for many homeowners to stack local and federal support.
- 🗓️ Application Deadline: July 31, 2025, at 5:00 PM PT
- 🔗 Apply here: www.baaqmd.gov/WoodSmokeGrant
If you’re considering making the switch to a cleaner, quieter, and more efficient heating system—or simply want to remove your fireplace for good—now is the time to act.
