A heat pump replaces both the air conditioner and the gas furnace in a Folsom house, and SMUD, which supplies electricity to most of Folsom, pays up to $3,000 toward a variable-stage heat pump that replaces gas heat. Our ducted heat pump installs run $9,500 to $20,000 and ductless installs $4,300 to $14,300 (our 2026 ranges), set by equipment, ducts and electrical work. The full service is on our heat pump installation and replacement page.
SMUD's heat pump rebate in Folsom
PG&E lists Folsom among the cities where SMUD, not PG&E, is the electric utility (PG&E, other electric utilities in its service area). Gas still comes from PG&E. Check your own address with SMUD before planning around the rebate. SMUD's current tiers, read from its rebate page in October 2026:
| System | Replaces | SMUD rebate |
|---|---|---|
| Variable-stage heat pump | gas heat | $3,000 |
| Two-stage heat pump, 15.2 SEER2 minimum | gas heat | $2,000 |
| Two-stage or variable-stage upgrade | an existing electric system | $1,000 |
SMUD pays these only on systems installed by a participating SMUD Contractor Network contractor, and only while funding lasts (SMUD heating and cooling rebates). Alpha Mechanical is listed in the SMUD Contractor Network directory. A single-stage heat pump earns nothing, so the stage of the equipment decides the rebate as much as the fuel it replaces. Our SMUD rebates guide covers the claim process.
The heat pumps we have installed in Folsom
Our Folsom records hold four heat pump installs since January 2024, each with an indoor air handler:
- a 4 ton Bosch variable-speed heat pump rated 18 SEER in 2024;
- a 4 ton Bosch heat pump later in 2024, installed with new flex ducts in the attic and a new electrical line to the air handler;
- a 3 ton Mitsubishi variable-speed heat pump in 2025, with a new supply plenum, duct transition and copper line set;
- a 2.5 ton Trane heat pump in 2024 with an electric heat strip for backup.
Two of the four, the Bosch 18 SEER and the Mitsubishi, are recorded as variable-speed systems, the class of equipment SMUD's $3,000 tier is written for; check the model against SMUD's qualifying list before signing.
What a Folsom conversion has to check
Moving from a gas furnace to a heat pump changes three things in the house, and a written proposal should name each one:
- Ducts. Existing ducts can stay if their condition and size suit the new system's airflow. One of our Folsom installs needed new flex ducts in the attic; another kept its ducts with a new supply plenum and transition. California's energy code adds a duct leakage test when equipment changes on existing ducts (California Energy Commission).
- Electrical. The air handler and any backup heat strip need their own circuit. A panel upgrade, when a house needs one, is quoted by a licensed electrician.
- Backup heat. A heat pump keeps heating below freezing, with less capacity as it gets colder; how much backup heat strip a house needs depends on the equipment and the home's heat loss, which we calculate when the house calls for it.
A room with no practical duct run can suit a ductless system instead; see our ductless mini-split installation page. If you would rather keep gas heat, our Folsom furnace replacement page covers the 80 and 96 percent choice. If you are keeping gas heat and replacing only the cooling, our Folsom AC installation and replacement page covers that path, and our heat pump versus gas furnace guide compares running costs.
Permits and booking in Folsom
The permit for a heat pump installation goes through the City of Folsom Building Division and its online ePermit Center. Installs carry our 10-year workmanship guarantee. For a heat pump that is already installed and not heating, our heat pump repair service is the right starting point. Our Folsom HVAC service page covers the rest of our work in the city. Call 916-848-5980 or schedule an estimate online.
