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Financing a new AC or heat pump in Los Angeles
A Los Angeles homeowner can finance HVAC through the state-backed GoGreen Home program (loans up to $50,000 and terms to 15 years, with 0% for heat pumps in qualifying communities), contractor promotional financing, PACE on the property tax bill, or their own bank. Compare every option on total cost, not monthly payment. We have no lender partners.
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Disclosure
This site is a lead-generation publisher. It has no lending partners, arranges no credit and is paid nothing by any lender named here. This page is general information, not financial advice.
The four routes, side by side
| Route | Secured by | What to check |
|---|---|---|
| GoGreen Home loan | Usually unsecured | Your utility qualifies; the participating lender's APR and term |
| Contractor or dealer financing | Varies by lender | Deferred vs waived interest; cash price vs financed price |
| PACE | A lien paid with property taxes | Total assessment, term, effect on sale or refinance |
| Bank, credit union, home equity | Unsecured or the home | APR, fees, and whether the home is at risk |
For scale, published Los Angeles prices run $5,500–$12,000 for a central AC replacement and $8,000–$17,000 for a heat pump (named sources on the cost guide).
GoGreen Home, the state-backed loan program
GoGreen Financing is run under the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) in the State Treasurer's office. Its residential page (read 2026-10-20) says:
- It offers below-market rates and extended terms, and heat pump heating, cooling and water heating upgrades may get 0% financing if you live in a qualifying community.
- The property must get electricity and/or gas from PG&E, SDG&E, SCE, SoCalGas or City of Palo Alto Utilities; customers of some publicly owned utilities may also qualify.
CAEATFA's program reports describe loans up to $50,000 and terms to 15 years, and say borrowers can use any CSLB-licensed contractor (March 2024 report; verify current terms with GoGreen).
LADWP customers
LADWP is not named on GoGreen's utility list. Many City of Los Angeles homes have a SoCalGas account, which may qualify the property. Confirm with GoGreen before relying on it.
Contractor and dealer promotional financing
- Deferred interest: if the balance is not paid off by the promo end date, interest from day one may be added. Ask whether interest is deferred or waived.
- Price loading: a 0% offer can be paid for by a higher equipment price. Ask for the cash price on the same quote.
- Who the lender is: the contract should name the lender, APR, term and any fees.
PACE: financing on the property tax bill
Property Assessed Clean Energy (PACE) repays the cost through a property tax assessment, which is a lien on the home. After complaints, California added protections in 2016–2017: a recorded live confirmation call, an ability-to-pay determination before the assessment, and the right to cancel the home improvement contract if you cancel the PACE financing within the cancellation window (SB 242, verify current law). The same laws brought PACE administrators under state licensing, now overseen by the Department of Financial Protection and Innovation (verify on DFPI's site).
Before you sign PACE
Ask for the total you will repay over the term, check with your mortgage lender, and remember a buyer or refinance lender may require the lien to be paid off.
Monthly payment calculator
Standard loan arithmetic on numbers you enter. It does not know any lender's rate.
Rules that protect you whatever you choose
- CSLB cautions that a down payment should not exceed 10 percent of the contract price, and later payments should not run ahead of the work done or materials delivered. (CSLB)
- Only a CSLB-licensed C-20 contractor should install it: check the license.
- Rebates are paid after installation, so do not let a lender size the loan on a rebate you have not been approved for (status board).
Sources
- GoGreen Financing (California Alternative Energy and Advanced Transportation Financing Authority), "Residential" (retrieved 2026-10-20)
- CAEATFA, GoGreen Home monthly program report (March 2024): loans up to $50,000, terms to 15 years, any CSLB-licensed contractor (retrieved 2026-10-20) — verify before relying on it
- California SB 242 (2017), PACE consumer protections: confirmation call, ability-to-pay, cancellation (via California Legislative Information) (retrieved 2026-10-20) — verify before relying on it
- CSLB press release #24-21 (retrieved 2026-09-29)
- California Code of Regulations, Title 16, § 832.20, via Cornell LII (retrieved 2026-09-29)
Questions
What financing is available for a new HVAC system in Los Angeles?
Four common routes: a loan through the state-backed GoGreen Home program, contractor or dealer promotional financing, a PACE assessment on your property tax bill, or your own bank, credit union or home equity line. We have no lender partners and earn nothing from any of them.
Can LADWP customers use GoGreen Home?
GoGreen lists PG&E, SDG&E, SCE, SoCalGas and City of Palo Alto Utilities, and says customers of some publicly owned utilities may qualify through a separate list. LADWP is not named on the page we read, but a SoCalGas gas account may qualify a property; check eligibility with GoGreen.
Is 0% dealer financing really free?
Check whether interest is deferred rather than waived, and whether the cash price is the same as the financed price. Ask for both in writing.
What protections does PACE have in California?
State law since 2017 requires a recorded confirmation call, an ability-to-pay determination before the assessment, and lets a homeowner who cancels the PACE financing within the cancellation window also cancel the home improvement contract. The assessment is a lien paid with property taxes, which can complicate a sale or refinance.
How much deposit can an HVAC contractor ask for?
CSLB cautions that a down payment should not exceed 10 percent of the contract price, and later payments should not run ahead of the work done or materials delivered.
Next step
Free quote request
Get a quote to check against these numbers
- Tell us about the job. Service, ZIP, property and timing. The form says right away if your ZIP is outside the area.
- We check the license first. Requests go only to contractors whose CSLB C-20 license we have matched on the state register. If none covers your ZIP yet, we email you and say so.
- Compare what comes back. Line the written quote up against the published ranges and the quote checklist.
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