MID Rebates for a New AC or Heat Pump: What Qualifies in 2026
Updated 2026-10 · Modesto, CA
Who it is for
MID's home rebates are for MID electric customers: most of Modesto north of the Tuolumne River, Salida, Waterford and parts of Riverbank, Oakdale, Escalon and Ripon. If your electric bill says PG&E or TID, MID's catalog does not apply, and your own utility's program does. Gas in Modesto is PG&E either way, and MID has nothing to do with it.
What the 2026 catalog lists for heating and cooling
Central air conditioners
Two tiers based on the Consortium for Energy Efficiency (CEE) directory, around $350 per unit at Tier 1 and $600 at Tier 2. Tier 1 for a split system calls for at least 15.2 SEER2 and 12.0 EER2.
Central heat pumps
Two tiers, around $450 and $700 per unit. Tier 1 for a split system calls for 15.2 SEER2, 11.7 EER2 and 7.8 HSPF2; Tier 2 is 17.0 SEER2, 12.0 EER2 and 8.0 HSPF2.
Ductless mini-split heat pumps
$350 per indoor head, up to four per household, at 15.2 SEER2, 11.7 EER2 and 7.8 HSPF2 or better.
Smaller items
ENERGY STAR smart thermostats replacing a manual or programmable one on a central system, whole-house fans moving at least 1,000 CFM in homes that already have air conditioning, and solar attic fans. Attic insulation is rebated per square foot, but only for homes whose primary heat source is electric.
The paperwork that decides whether it pays
- Installed by a CSLB contractor in good standing with a C-20 licence
- A copy of the city or county permit
- The paid invoice showing brand and model numbers
- A current AHRI Certificate of Product Ratings, and the unit listed as active in the CEE directory
- A matching indoor coil on split systems
- Maximum 5 tons (65,000 Btu/h) per unit, and no more than two central units per household
- Application within 90 days of purchase, online or by post to MID Energy Services
Things that catch people out
The 90 days runs from the purchase, not the inspection. If the final inspection or HERS visit drags, apply with what you have and send the permit when it closes, or ask MID how they want it handled.
Amounts depend on program funding on the date MID receives the application, not the date you signed the contract. Check mid.org before committing to an expensive tier for the sake of the rebate.
A condenser-only replacement on an old coil will not qualify on a split system, because the catalog requires the matching coil. That is also the right way to install it.
How it fits the bigger decision
A few hundred dollars does not decide between a furnace-and-AC and a heat pump on its own, but it narrows the gap, and the heat pump tiers pay more than the AC tiers. The federal tax credit for heat pumps changed in 2025, so do not count on it without checking current IRS guidance.
Pricing a system that qualifies? Call and say what you have now. A local heating and air company will quote it with the paperwork MID asks for.
Where to go next
Common questions
Does MID give rebates on furnaces?
The 2026 catalog's heating and cooling rebates cover air conditioners, heat pumps, mini-splits, thermostats and fans, not gas furnaces. MID does not supply gas.
How long does the rebate take?
MID processes it after receiving a complete application. Missing documents are the usual cause of delay; send everything at once.
I am a renter. Can I apply?
The catalog's terms and conditions set eligibility. Usually the person paying for the equipment applies, with the owner's agreement. Check mid.org.