Peninsula Home Electrification

Heat Pump Water Heaters, Rebates & the Gas Phase-Out

What every San Mateo County homeowner should know in 2026 — and how to capture thousands in rebates before the Bay Area gas rules take effect.

The Peninsula is going electric — here's what it means for your home

Across San Mateo County, gas furnaces and tank water heaters are being replaced by efficient electric heat pumps — driven by new Bay Area air-quality rules, generous rebates, and lower operating costs. The homes that plan ahead get to choose the right system on their own timeline and stack the most incentives. The homes that wait until something breaks pay full price under pressure.

As a Mitsubishi Diamond certified contractor serving the Peninsula, Nur HVAC handles the full electrification path — heat pump HVAC, heat pump water heaters, panel and circuit upgrades, and the rebate paperwork that goes with them.

Mitsubishi Electric — Diamond Elite Contractor

Diamond Elite Contractor

Mitsubishi Electric’s highest tier — factory-certified, warranties up to 12 years.

Modern residential electric heat pump system
Modern residential electrical service panel upgrade

The Bay Area gas phase-out: 2027 & 2029

Bay Area Air Quality Management District rules begin requiring new residential water heaters to be zero-NOx — in practice, electric heat pump models — starting in 2027. Gas space heaters and furnaces follow in 2029. You won't be forced to rip out a working appliance, but once your gas unit fails, its replacement will need to meet the new standard.

That makes the next couple of years the smart window to switch: rebates are strong now, you avoid an emergency replacement, and you lock in lower running costs. We help you plan the transition before it becomes urgent.

Money on the table

2026 heat pump rebates & incentives

These programs frequently stack. We calculate exactly what your home qualifies for and apply the contractor-side rebates for you. Amounts change — treat this as a starting point, not a quote.

Peninsula Clean Energy

Local

Rebates toward heat pump water heaters and heat pump HVAC for San Mateo County homes, with extra incentives for income-qualified households.

BayREN Home+

Regional

Bay Area regional rebates for heat pump water heaters, heat pump HVAC, ductwork and related electrical work — stackable with other programs.

TECH Clean California

Statewide

Statewide heat pump incentives applied at the point of installation by participating contractors like us.

Heat pump water heater

Start with a heat pump water heater

For most Peninsula homes the easiest first step is the water heater. A heat pump water heater uses roughly 3–4× less electricity than a standard electric tank, qualifies for rebates a gas unit doesn't, and sets your home up for the gas phase-out — all without touching your HVAC.

  • 3–4× more efficient than electric resistance
  • Qualifies for stackable 2026 rebates
  • Future-proofs against the gas phase-out
  • Lower monthly energy bills
  • Quiet, proven technology
  • Often a 1-day installation
Heat pump water heater installation

Electrification & rebates — FAQ

Is gas really being phased out in the Bay Area?

Yes — Bay Area Air Quality regulations begin requiring new water heaters to be zero-NOx (effectively electric heat pump models) starting in 2027, with space heaters and furnaces following in 2029. Existing appliances are not removed, but as they fail, replacements must meet the new standard. Planning ahead lets you choose the system you want instead of reacting to a breakdown.

How much can I save with heat pump rebates in 2026?

It depends on the equipment and your household, but San Mateo County homeowners can often stack rebates from Peninsula Clean Energy, BayREN and TECH together with TECH Clean California — frequently totaling several thousand dollars toward a heat pump water heater or heat pump HVAC system. We calculate your specific eligibility during a free assessment.

Why a heat pump water heater instead of a regular one?

A heat pump water heater uses roughly 3–4× less electricity than a standard electric tank by moving heat instead of generating it, and it qualifies for rebates a gas unit does not. It's the single easiest first step toward electrifying a Peninsula home, and it future-proofs you against the gas phase-out.

See what your home qualifies for

Free electrification assessment — we map your rebates and the right heat pump path for your home, with no pressure.

Google Reviews

What our customers say on Google

5.0441+ Google reviews
David Zhang
David Zhang
2 weeks ago

I highly recommend Nur HVAC! They upgraded my old split furnace HVAC with a heat pump HVAC retrofit. Fedor and the installation team showed outstanding professionalism and craftsmanship in all phases of the project: * Detailed initial project scoping tailored to my home's needs * Fast, friendly communication from start to finish * Solved new complexities we encountered on site * Collaboratively discussed alternative solutions, never felt pushy * High work quality I would absolutely choose Nur again for future HVAC work.

Vasudha Srivastava
Vasudha Srivastava
11 hours ago

Fedor and the team were great! Very professional and great communication.

S Fishman
S Fishman
a week ago

Our team was meticulous with installation of a new AC system. The communication with the whole team from the office to the installers was clear, helpful and timely. They take great pride in their work and are professional and easy to work with. We highly recommend Nur.

Stephen Hanson
Stephen Hanson
a month ago

From appointment making to resolution of A/C issue the service was fantastic.

Colleen McGuire
Colleen McGuire
a week ago

Adlan is a pleasure to work with. He's knowledgeable and clearly tries to do the best, most effective repair for the lowest cost.

Mario EFH
Mario EFH
a week ago

With summers getting hotter every year, we finally decided to seek out someone to install an AC system. We opted to get everything done in one go, so we replaced an outdated furnace, installed new air ducts & vents, and decided on an efficient A/C unit. Nur HVAC was reasonably priced, not the most expensive, not the cheapest, but had the best communication, clear outline on the work being done, and the actual workmanship of the install was very professional. Very happy we went with this company. The attention to detail was top notch, service was friendly, and the equipment is so quiet we barely notice it when it's on. Only regret is not having done it sooner.

Mark Goldberg
Mark Goldberg
3 months ago

I used Nur to install a new heat pump and they were terrific. I sought quotes from a number of competitors. Not only were they competitively priced but they have been super responsive and professional throughout. Fedor patiently and thoroughly responded to every question that ChatGPT could throw at him (through me)! The installation team - Alex and Vadim - were awesome and worked went above and beyond.

G. T. Kelly
G. T. Kelly
2 months ago

The service was prompt and the HVAC system was quickly repaired. While repairing the HVAC, we had our heater serviced. Both were reasonably priced and no attempts were made to upsell additional services. Bottom line, we will use their services in the future.

Jason Fan
Jason Fan
a month ago

Great job by the team on two new Mitsubishi systems!

Jeff
Jeff
a month ago

Adlan just completed a full residential furnace and a/c system maintenance. Happy to say he performed a very thorough job. He diagnosed and fixed a dead vent. All proper measurements were taken and he dug in deep to check all the components. 100% happy with the service.

ferris ammadi
ferris ammadi
Edited a month ago

They are very professional and experienced. I looked around a lot. this company gave me the best price for new install. I was waiting to find something wrong with their install or the system, but they brought a brand new system, and did a great job on installation as well. So i won in every direction. I give Arthur 10.

Cathy Merrill
Cathy Merrill
3 weeks ago

I had my 40 year old gas furnace and 30 year old central air cooler removed and replaced with all new heat pump system that also qualifies for a SVCE rebate! NUR HVAC’s cost estimate was comparable to their competitors, they were responsive to my needs for scheduling, friendly and easy to work with. I would highly recommend them!

Jack Moore
Jack Moore
5 days ago

Great work on a difficult problem Replacement of faulty unit in a condo complex

Claus Moldt
Claus Moldt
5 days ago

Great communication. Needed a couple of visits to fix but stuck with it until the job was done.

Susan Lacy
Susan Lacy
Edited 5 days ago

Loved my technician. Very honest.

Mark Brunst
Mark Brunst
3 months ago

Great communication and expert team

Camille Sindhu
Camille Sindhu
Edited 3 weeks ago

Amazing quality of commitment, service, and communication. Would highly recommend this company!

Geoffrey Baehr
Geoffrey Baehr
Edited 2 months ago

nice guy, on time, did maint, no ripoffs, laid back, will use again. Excellent price.

Glen Phillips
Glen Phillips
3 weeks ago

Very knowledgable and provided great recommendations

Kaho Lee
Kaho Lee
2 weeks ago

Islam is very knowledgeable, patient and a diligent professional. Thanks Islam!

Sarah Levine
Sarah Levine
2 months ago

Responsive and professional. Great job.

Steve McShurley
Steve McShurley
3 weeks ago

Islan diagnosed system. Needs to order parts and return for repairs

Mamali Z
Mamali Z
Edited 2 months ago

Aldan is knowledgeable and very helpful. He came on time and did a thorough job. He explains every steps and future plans

Jerry Shluker
Jerry Shluker
2 months ago

Alexey was on time, very courteous and thorough. He solved the problem. AC works again.

David Zhang
David Zhang
2 weeks ago

I highly recommend Nur HVAC! They upgraded my old split furnace HVAC with a heat pump HVAC retrofit. Fedor and the installation team showed outstanding professionalism and craftsmanship in all phases of the project: * Detailed initial project scoping tailored to my home's needs * Fast, friendly communication from start to finish * Solved new complexities we encountered on site * Collaboratively discussed alternative solutions, never felt pushy * High work quality I would absolutely choose Nur again for future HVAC work.

Vasudha Srivastava
Vasudha Srivastava
11 hours ago

Fedor and the team were great! Very professional and great communication.

S Fishman
S Fishman
a week ago

Our team was meticulous with installation of a new AC system. The communication with the whole team from the office to the installers was clear, helpful and timely. They take great pride in their work and are professional and easy to work with. We highly recommend Nur.

Stephen Hanson
Stephen Hanson
a month ago

From appointment making to resolution of A/C issue the service was fantastic.

Colleen McGuire
Colleen McGuire
a week ago

Adlan is a pleasure to work with. He's knowledgeable and clearly tries to do the best, most effective repair for the lowest cost.

Mario EFH
Mario EFH
a week ago

With summers getting hotter every year, we finally decided to seek out someone to install an AC system. We opted to get everything done in one go, so we replaced an outdated furnace, installed new air ducts & vents, and decided on an efficient A/C unit. Nur HVAC was reasonably priced, not the most expensive, not the cheapest, but had the best communication, clear outline on the work being done, and the actual workmanship of the install was very professional. Very happy we went with this company. The attention to detail was top notch, service was friendly, and the equipment is so quiet we barely notice it when it's on. Only regret is not having done it sooner.

Mark Goldberg
Mark Goldberg
3 months ago

I used Nur to install a new heat pump and they were terrific. I sought quotes from a number of competitors. Not only were they competitively priced but they have been super responsive and professional throughout. Fedor patiently and thoroughly responded to every question that ChatGPT could throw at him (through me)! The installation team - Alex and Vadim - were awesome and worked went above and beyond.

G. T. Kelly
G. T. Kelly
2 months ago

The service was prompt and the HVAC system was quickly repaired. While repairing the HVAC, we had our heater serviced. Both were reasonably priced and no attempts were made to upsell additional services. Bottom line, we will use their services in the future.

Jason Fan
Jason Fan
a month ago

Great job by the team on two new Mitsubishi systems!

Jeff
Jeff
a month ago

Adlan just completed a full residential furnace and a/c system maintenance. Happy to say he performed a very thorough job. He diagnosed and fixed a dead vent. All proper measurements were taken and he dug in deep to check all the components. 100% happy with the service.

ferris ammadi
ferris ammadi
Edited a month ago

They are very professional and experienced. I looked around a lot. this company gave me the best price for new install. I was waiting to find something wrong with their install or the system, but they brought a brand new system, and did a great job on installation as well. So i won in every direction. I give Arthur 10.

Cathy Merrill
Cathy Merrill
3 weeks ago

I had my 40 year old gas furnace and 30 year old central air cooler removed and replaced with all new heat pump system that also qualifies for a SVCE rebate! NUR HVAC’s cost estimate was comparable to their competitors, they were responsive to my needs for scheduling, friendly and easy to work with. I would highly recommend them!

Jack Moore
Jack Moore
5 days ago

Great work on a difficult problem Replacement of faulty unit in a condo complex

Claus Moldt
Claus Moldt
5 days ago

Great communication. Needed a couple of visits to fix but stuck with it until the job was done.

Susan Lacy
Susan Lacy
Edited 5 days ago

Loved my technician. Very honest.

Mark Brunst
Mark Brunst
3 months ago

Great communication and expert team

Camille Sindhu
Camille Sindhu
Edited 3 weeks ago

Amazing quality of commitment, service, and communication. Would highly recommend this company!

Geoffrey Baehr
Geoffrey Baehr
Edited 2 months ago

nice guy, on time, did maint, no ripoffs, laid back, will use again. Excellent price.

Glen Phillips
Glen Phillips
3 weeks ago

Very knowledgable and provided great recommendations

Kaho Lee
Kaho Lee
2 weeks ago

Islam is very knowledgeable, patient and a diligent professional. Thanks Islam!

Sarah Levine
Sarah Levine
2 months ago

Responsive and professional. Great job.

Steve McShurley
Steve McShurley
3 weeks ago

Islan diagnosed system. Needs to order parts and return for repairs

Mamali Z
Mamali Z
Edited 2 months ago

Aldan is knowledgeable and very helpful. He came on time and did a thorough job. He explains every steps and future plans

Jerry Shluker
Jerry Shluker
2 months ago

Alexey was on time, very courteous and thorough. He solved the problem. AC works again.

David Zhang
David Zhang
2 weeks ago

I highly recommend Nur HVAC! They upgraded my old split furnace HVAC with a heat pump HVAC retrofit. Fedor and the installation team showed outstanding professionalism and craftsmanship in all phases of the project: * Detailed initial project scoping tailored to my home's needs * Fast, friendly communication from start to finish * Solved new complexities we encountered on site * Collaboratively discussed alternative solutions, never felt pushy * High work quality I would absolutely choose Nur again for future HVAC work.

Vasudha Srivastava
Vasudha Srivastava
11 hours ago

Fedor and the team were great! Very professional and great communication.

S Fishman
S Fishman
a week ago

Our team was meticulous with installation of a new AC system. The communication with the whole team from the office to the installers was clear, helpful and timely. They take great pride in their work and are professional and easy to work with. We highly recommend Nur.

Stephen Hanson
Stephen Hanson
a month ago

From appointment making to resolution of A/C issue the service was fantastic.

Colleen McGuire
Colleen McGuire
a week ago

Adlan is a pleasure to work with. He's knowledgeable and clearly tries to do the best, most effective repair for the lowest cost.

Mario EFH
Mario EFH
a week ago

With summers getting hotter every year, we finally decided to seek out someone to install an AC system. We opted to get everything done in one go, so we replaced an outdated furnace, installed new air ducts & vents, and decided on an efficient A/C unit. Nur HVAC was reasonably priced, not the most expensive, not the cheapest, but had the best communication, clear outline on the work being done, and the actual workmanship of the install was very professional. Very happy we went with this company. The attention to detail was top notch, service was friendly, and the equipment is so quiet we barely notice it when it's on. Only regret is not having done it sooner.

Mark Goldberg
Mark Goldberg
3 months ago

I used Nur to install a new heat pump and they were terrific. I sought quotes from a number of competitors. Not only were they competitively priced but they have been super responsive and professional throughout. Fedor patiently and thoroughly responded to every question that ChatGPT could throw at him (through me)! The installation team - Alex and Vadim - were awesome and worked went above and beyond.

G. T. Kelly
G. T. Kelly
2 months ago

The service was prompt and the HVAC system was quickly repaired. While repairing the HVAC, we had our heater serviced. Both were reasonably priced and no attempts were made to upsell additional services. Bottom line, we will use their services in the future.

Jason Fan
Jason Fan
a month ago

Great job by the team on two new Mitsubishi systems!

Jeff
Jeff
a month ago

Adlan just completed a full residential furnace and a/c system maintenance. Happy to say he performed a very thorough job. He diagnosed and fixed a dead vent. All proper measurements were taken and he dug in deep to check all the components. 100% happy with the service.

ferris ammadi
ferris ammadi
Edited a month ago

They are very professional and experienced. I looked around a lot. this company gave me the best price for new install. I was waiting to find something wrong with their install or the system, but they brought a brand new system, and did a great job on installation as well. So i won in every direction. I give Arthur 10.

Cathy Merrill
Cathy Merrill
3 weeks ago

I had my 40 year old gas furnace and 30 year old central air cooler removed and replaced with all new heat pump system that also qualifies for a SVCE rebate! NUR HVAC’s cost estimate was comparable to their competitors, they were responsive to my needs for scheduling, friendly and easy to work with. I would highly recommend them!

Jack Moore
Jack Moore
5 days ago

Great work on a difficult problem Replacement of faulty unit in a condo complex

Claus Moldt
Claus Moldt
5 days ago

Great communication. Needed a couple of visits to fix but stuck with it until the job was done.

Susan Lacy
Susan Lacy
Edited 5 days ago

Loved my technician. Very honest.

Mark Brunst
Mark Brunst
3 months ago

Great communication and expert team

Camille Sindhu
Camille Sindhu
Edited 3 weeks ago

Amazing quality of commitment, service, and communication. Would highly recommend this company!

Geoffrey Baehr
Geoffrey Baehr
Edited 2 months ago

nice guy, on time, did maint, no ripoffs, laid back, will use again. Excellent price.

Glen Phillips
Glen Phillips
3 weeks ago

Very knowledgable and provided great recommendations

Kaho Lee
Kaho Lee
2 weeks ago

Islam is very knowledgeable, patient and a diligent professional. Thanks Islam!

Sarah Levine
Sarah Levine
2 months ago

Responsive and professional. Great job.

Steve McShurley
Steve McShurley
3 weeks ago

Islan diagnosed system. Needs to order parts and return for repairs

Mamali Z
Mamali Z
Edited 2 months ago

Aldan is knowledgeable and very helpful. He came on time and did a thorough job. He explains every steps and future plans

Jerry Shluker
Jerry Shluker
2 months ago

Alexey was on time, very courteous and thorough. He solved the problem. AC works again.