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Home > Blog > San Diego Mortgage Incentives: Grants, Rebates & Energy Efficiency Programs

San Diego Mortgage Incentives: Grants, Rebates & Energy Efficiency Programs

by Alex Moore
6 min read
08/07/2025 02:36 PM
mortgage

New Incentives

Homeowners and buyers in San Diego can take advantage of a range of mortgage incentives, rebates, and energy efficiency programs designed to reduce costs, increase comfort, and boost property value. At Lending Bee, we make it easy to navigate these opportunities. Whether you’re purchasing your first home or upgrading your current one, we help you access the savings and financing solutions that make sense for your goals.

We connect you to programs offered at the city, county, state, and utility levels—maximizing every benefit available. With our expertise, you don’t just get a mortgage; you get a smarter path to long-term homeownership.

HERO and PACE Financing in San Diego

How PACE Works

The HERO program, part of California’s Property Assessed Clean Energy (PACE) initiative, offers homeowners a way to finance energy-efficient improvements through their property tax bill. PACE financing covers 100% of installation costs for eligible upgrades, including HVAC systems, insulation, energy-efficient windows, roofing, and solar panels.

Unlike traditional financing, HERO approval is based on home equity and property tax payment history—not your credit score. This makes it accessible to more homeowners. Repayments are made through your property taxes and often stretch up to 20 years. If you sell the home, the repayment obligation can transfer to the new owner.

Why Lending Bee Recommends It

Lending Bee helps you determine if HERO financing fits with your mortgage strategy. We assist with contractor coordination and ensure all disclosures and property tax adjustments are factored into your long-term affordability plan.

San Diego Gas & Electric Incentives

Rebates on Energy-Efficient Appliances

San Diego Gas & Electric (SDG&E) offers valuable in-store rebates for high-efficiency appliances and home technologies. Customers can receive instant discounts on items like smart thermostats, washers, dryers, water heaters, and air purifiers. These rebates often range from $25 to over $300 depending on the product.

Free Home Upgrades for Income-Qualified Residents

Through programs like Energy Savings Assistance (ESA) and Residential Energy Solutions (RES), SDG&E also provides no-cost upgrades for income-qualified homeowners and renters. These upgrades include LED lighting, attic insulation, weather stripping, and low-flow showerheads—measures that immediately reduce energy bills.

Lending Bee helps you apply for these rebates or schedule an ESA assessment, aligning savings with your mortgage strategy.

The HEART Program in the City of San Diego

Full Coverage for Electrification Projects

The City of San Diego’s Home Electrification Affordability Rebates and Technical Assistance (HEART) program launched in mid-2025. It targets moderate-income households and those impacted by recent flooding. Eligible residents can receive up to 100% coverage for electrification projects, including appliances, labor, permit fees, and even the removal of old equipment.

This program reduces the cost of switching to cleaner, energy-efficient systems such as electric heat pumps, induction ranges, and advanced water heaters.

Application Support From Lending Bee

Lending Bee helps you verify eligibility based on income and location. We walk you through every step—from contractor estimates to rebate forms—so you can complete upgrades without delays or stress.

Statewide Rebates: HOMES and HEEHRA Programs

HOMES: Whole-House Energy Efficiency

The Home Owner Managing Energy Savings (HOMES) rebate program rewards homeowners based on total energy savings achieved through a full-home upgrade. Rebates can range from $2,000 to over $8,000, depending on how much energy is saved after improvements are made.

Upgrades may include insulation, duct sealing, high-efficiency HVAC, and smart thermostats. This performance-based model ensures incentives match real outcomes.

HEEHRA: Appliance and Electrification Rebates

The High-Efficiency Electric Home Rebate Act (HEEHRA) supports lower-income households with rebates on qualifying appliances. This includes up to $8,000 for heat pumps, $1,750 for heat pump water heaters, and $840 for electric stoves.

As of 2025, funding for single-family home HEEHRA rebates has been exhausted in some areas, but benefits remain for multifamily buildings and new allocations are expected.

Lending Bee Tracks Funding and Deadlines

Lending Bee ensures you don’t miss out due to timing or paperwork. We stay up to date on statewide program rollouts, monitor fund availability, and guide you toward the best combination of rebates and financing options.

The Self-Generation Incentive Program (SGIP)

Solar and Battery Incentives

The SGIP program offers generous rebates for installing battery storage systems, either on their own or as part of a solar energy setup. This program is especially valuable for homeowners in wildfire-prone areas or communities vulnerable to power outages.

Rebates can cover a substantial portion of system costs, with even higher incentives available for income-qualified households. Starting in 2025, new tiers will expand access and increase rebate amounts for lower-income residents.

Resilience Meets Affordability

Lending Bee helps you integrate SGIP incentives into your financing plan. We evaluate the cost-benefit of battery installation and ensure it complements your overall home energy strategy.

Regional Incentives Through SDREN

New Programs From San Diego Regional Energy Network

The San Diego Regional Energy Network (SDREN) is launching ten new programs through the end of 2025 and into 2026. These will provide energy assessments, upgrade incentives, contractor matchmaking, and technical assistance, with a focus on underserved communities.

Programs will cover both single-family and multifamily properties and will include options for renters, landlords, and homeowners alike.

Lending Bee Helps You Navigate the Rollout

As these programs become available, Lending Bee keeps you informed. We ensure you understand which SDREN opportunities align with your property type, income level, and renovation goals.

How Lending Bee Helps You Maximize Incentives

More Than a Mortgage

At Lending Bee, we do more than secure your loan. We identify how rebates, grants, and financing tools can reduce your upfront costs and monthly expenses. For example, energy-efficient upgrades can lower your utility bills, making it easier to qualify for a larger mortgage or improve your debt-to-income ratio.

We also understand how these programs affect home value, resale potential, and long-term savings. Whether you’re buying, refinancing, or upgrading, we build a custom mortgage plan that includes every available benefit.

End-to-End Support

From identifying rebates to completing applications, Lending Bee provides hands-on support at every step. We coordinate with contractors, ensure compliance with rebate rules, and help you integrate energy savings into your mortgage strategy. You never have to guess what comes next—we guide you from start to finish.

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Whether you’re looking to flip a property, bridge a financial gap, or fund a new construction project, our flexible financing solutions can help you achieve your vision. Don’t let funding hold you back – contact us today and discover how our expert team can help you unlock the door to success.”

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