Peninsula Home Electrification
Heat Pump Water Heaters, Rebates & the Gas Phase-Out
What Peninsula and South Bay homeowners should know in 2026: the gas appliance rules, the rebates that are actually open, and where to start.
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.
Diamond Elite Contractor
Mitsubishi Electric’s highest tier - factory-certified, warranties up to 12 years.
The Bay Area gas phase-out: 2027 & 2029
Bay Area Air District rules require new residential water heaters to be zero-NOx - in practice, heat pump models - starting in 2027 (a proposed delay to 2028 is pending a Board vote expected in November 2026). Gas 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: local rebates are open 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
Which program applies depends on your electricity provider. We check your address and help with the paperwork. Amounts and availability change - check with the program before you buy. Figures as of October 2026.
WestLight Energy (formerly Peninsula Clean Energy)
San Mateo County$1,500 toward a heat pump that replaces a gas furnace, plus a rebate for a heat pump water heater that replaces a gas tank and a $1,000 bonus for CARE/FERA households. Apply within 90 days after installation.
Program detailsSilicon Valley Clean Energy
South Bay$2,000 toward a heat pump that replaces a gas furnace and $2,500 toward a heat pump water heater that replaces a gas tank, with higher amounts for income-qualified homes. Some cities, including Mountain View and Sunnyvale, set their own amounts. Reserve the rebate before installation.
Program detailsSan José Clean Energy (EcoHome)
San Jose$1,500 toward a heat pump that replaces gas heating ($2,500 in designated environmental-justice areas) and a rebate for a heat pump water heater that replaces a gas unit. Approval is required before installation.
Program detailsCleanPowerSF
San FranciscoUp to $1,200 in bill credits ($50 a month) for switching to an electric heat pump water heater or heating system, with an extra 12 months for CARE/FERA customers. Enrollment in an electrification rate is required.
Program detailsCity of Palo Alto Utilities
Palo AltoThe Electrify My Home program offers rebates, permit help and a full-service option for heat pump water heaters. Check the program for current amounts.
Program details
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 local utility rebates
- Future-proofs against the gas phase-out
- Lower monthly energy bills
- Quiet, proven technology
- Often a 1-day installation
Electrification & rebates - FAQ
Is gas really being phased out in the Bay Area?
Bay Area Air District rules require new small water heaters to be zero-NOx (in practice, heat pump models) starting in 2027, and furnaces from 2029. A proposed amendment would move the water heater date to 2028; the Board is expected to vote in November 2026. 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.
Which heat pump rebates are available in 2026?
Most rebates now come from your local community energy provider: WestLight Energy (formerly Peninsula Clean Energy) in San Mateo County, Silicon Valley Clean Energy and San José Clean Energy in the South Bay, CleanPowerSF in San Francisco, and City of Palo Alto Utilities in Palo Alto. Some require approval before installation, so we check your address and the program rules before we schedule. Amounts and availability change - check with the program before you buy.
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.
Electrification & heat pumps by city
Google Reviews
What our customers say on Google
“We had the system shutting off too soon. Elias found the problem: vermin had chewed through an important wire!”
“Adlan C. was our technician and was very helpful, knowledgeable, and thorough. I would recommend NUR HVAC to others as a trustworthy service provider.”
“Superior service. Fedor promised a high quality install, and delivered beyond expectations. The installers did a high quality install. There were no shortcuts taken. They did everything they could to make the install go smoothly. I cannot recommend them enough.”
“Very professional, all installation was excellent, quick and clean. Would recommend fully.”
“Nur HVAC recently installed a mini-split system in our SF condo; one in the living room, and one each in the two bedrooms. They installed the heat pump outside on the balcony. I was impressed with their work ethic and the way they kept our space clean during the installation. They cleaned up at the end of each work day and were very respectful and thoughtful of our home, our dog, and us. They communicate clearly and quickly; I would highly recommend them to install an AC system.”
“Very competitive price. Very professional estimate and installation process.”
“The people at NUR did a fabulous job installing a new heat pump, and at a very competitive price. The crew was communicative, on-time, and very professional. About a year later we're very much enjoying our (still) new heating/cooling system!”
“Adlan was amazing. Our apartment hvac was not functioning appropriately and Adlan analyzed the situation diligently and efficiently fixed the found issues.”
“Professional, detailed, and super hard working. NUR did a fantastic job replacing my air conditioner. Highly recommend!”
“Furnace replacement. Very professionally done. Price was significantly below a competitive bid. I would recommend. English as a second language for the installers presented a challenge, but the end result, so far, has been great.”
“The best in service, as always! Thanks, David and team”
“Alex and Dil were extremely professional. They did amazing job and our project manager Arthur was always provided updates”
“We've only had a diagnostic so far, but the technician Adlan was awesome. We were super impressed so far. We hope to see him again for the repair.”
“I’m very pleased with Nur HVAC. I have an older AC unit, and Islam was able to successfully repair it while clearly explaining the work and showing me the before-and-after measurements so I could understand the difference. He also patiently answered all my questions. I am very satisfied with the service.”
“Alexey is fantastic. He did a great job. I would absolutely recommend NUR HVACand Alexey”
“Adlan was so professional, knowledgeable and an excellent technician. Glad we called!!!”
“Adlan is very nice and thorough with his explanations.”
“After 18 years our Air Conditioning System failed. We, of course, called Nur HVAC and were glad to see Islam again. He rapidly diagnosed that the AC compressor failed and had to be replaced. However, the AC system was so old that the compressor only had a 1 year warranty and the refrigerant in use 18 years ago is only available for legacy repairs (This is to protect the Ozone layer). We could have replaced the AC system, but the heating system was equally old and likely to fail. The cost to move to a full all electric HVAC system was a few dollars more than just replacing the AC system and it would eliminate our use of gas for heating and take advantage of the recently installed Solar Panels. So the house has a new fully electric HVAC system installed by Nur HVAC. Islam came and took the measurements so the system could be ordered and priced. Soon Alex and the installation team arrived to install the system. The quality of the installation and the care Alex and team took during the custom wiring, new refrigerant lines, new moisture drains, new thermostats, system setup and calibration was outstanding. Alex made sure that the air flow for both heating and cooling was measured and far better than the previous systems. Alex made sure to keep us informed as progress was being made and they managed to keep the house clean during the install. Again Nur HVAC exceeded expectations with a very high quality install at a fair price. A project of this size had a few bumps but this appeared to have been done to provide a quality install with attention to detail. This company has superb knowledgeable professionals working for it from service to installation. I highly recommend Nur HVAC.”
“We have used NUR HVAC for maintenance and repair multiple times over the years. The receptionist is friendly and dispatches technician timely whenever possible. Islam, the technician who worked with us in the past two years, is always on time for the scheduled appointment, technically competent and also very friendly and patient when answering my questions related to our 2 HVAC systems. Thank you Islam! We will definitely continue to use NUR HVAC’s service.”
“I could not be happier with the work Nur HVAC did. Mine was a large residential job, replacing 2 furnaces and 2 HVAC units. I procured 3 estimates from different companies and Nur provided the most detailed estimate at the lowest price. Communication was good throughout the process and the project was finished on time. I'm most happy about the quality of the work. It is meticulous! The entire project was a great experience.”
“Last month, we contracted NUR HVAC to install three units of Mitsubishi ductless AC units to our house. The sales contact Artur was very professional, always addressed our questions very quickly and clearly. Their office support Regina was proactive and timely communicated important information for our awareness ahead of time. Their two technicians Maxim and Alksei have done done an excellent job to install the units and relevant pipes. We are very satisfied with the quality of Nur HAVC's work, their competitive price and excellent customer services, and definitely recommend this company for others who are seeking professionals to do the similar service. George and Amy from Redwood Shores, CA”
“Alexey from NUR HVAC was a total pro! He was friendly and clearly communicated the repair plan (schedule, likely costs) as my Carrier HVAC circuit board was damaged but replaced under warranty. And when Carrier/brand mixed up and sent the wrong part, he quickly got them to resend and rushed down that same day to install it. Highly recommend NUR and Alexey!”
“Amazing job! 2 gentleman work smoothly and super fast and clean. There are no garbage after they finished. Highly recommend!!”
“Our experience with NUR was simply awesome from start to finish. The quoting process (with Artur) was fantastic: he knew his stuff, could explain the "ins and outs" of every system choice in great detail (I had done my research and had a lot of very specific questions ready). I found him to be incredibly communicative, appreciated that he produced a really detailed quote and handled all the scheduling and logistics including permits. Our building is a tricky site because we are on a hill, so Artur even coordinated with a scaffold company on our behalf so the refrigerant line could be installed, and negotiated with them to lower the price. Shalai was our lead installer, and was incredible. He and his team were all super friendly, always respectful of our home, extremely clean and tidy, very detail-oriented, took their time to do the work (versus rushing to get to the next job) and checked in daily. I wanted a couple of things done very specifically with the plenum and filter box, and they were happy to accommodate everything, no questions asked. The install is a thing of beauty. Would absolutely recommend, great company.”
“We had the system shutting off too soon. Elias found the problem: vermin had chewed through an important wire!”
“Adlan C. was our technician and was very helpful, knowledgeable, and thorough. I would recommend NUR HVAC to others as a trustworthy service provider.”
“Superior service. Fedor promised a high quality install, and delivered beyond expectations. The installers did a high quality install. There were no shortcuts taken. They did everything they could to make the install go smoothly. I cannot recommend them enough.”
“Very professional, all installation was excellent, quick and clean. Would recommend fully.”
“Nur HVAC recently installed a mini-split system in our SF condo; one in the living room, and one each in the two bedrooms. They installed the heat pump outside on the balcony. I was impressed with their work ethic and the way they kept our space clean during the installation. They cleaned up at the end of each work day and were very respectful and thoughtful of our home, our dog, and us. They communicate clearly and quickly; I would highly recommend them to install an AC system.”
“Very competitive price. Very professional estimate and installation process.”
“The people at NUR did a fabulous job installing a new heat pump, and at a very competitive price. The crew was communicative, on-time, and very professional. About a year later we're very much enjoying our (still) new heating/cooling system!”
“Adlan was amazing. Our apartment hvac was not functioning appropriately and Adlan analyzed the situation diligently and efficiently fixed the found issues.”
“Professional, detailed, and super hard working. NUR did a fantastic job replacing my air conditioner. Highly recommend!”
“Furnace replacement. Very professionally done. Price was significantly below a competitive bid. I would recommend. English as a second language for the installers presented a challenge, but the end result, so far, has been great.”
“The best in service, as always! Thanks, David and team”
“Alex and Dil were extremely professional. They did amazing job and our project manager Arthur was always provided updates”
“We've only had a diagnostic so far, but the technician Adlan was awesome. We were super impressed so far. We hope to see him again for the repair.”
“I’m very pleased with Nur HVAC. I have an older AC unit, and Islam was able to successfully repair it while clearly explaining the work and showing me the before-and-after measurements so I could understand the difference. He also patiently answered all my questions. I am very satisfied with the service.”
“Alexey is fantastic. He did a great job. I would absolutely recommend NUR HVACand Alexey”
“Adlan was so professional, knowledgeable and an excellent technician. Glad we called!!!”
“Adlan is very nice and thorough with his explanations.”
“After 18 years our Air Conditioning System failed. We, of course, called Nur HVAC and were glad to see Islam again. He rapidly diagnosed that the AC compressor failed and had to be replaced. However, the AC system was so old that the compressor only had a 1 year warranty and the refrigerant in use 18 years ago is only available for legacy repairs (This is to protect the Ozone layer). We could have replaced the AC system, but the heating system was equally old and likely to fail. The cost to move to a full all electric HVAC system was a few dollars more than just replacing the AC system and it would eliminate our use of gas for heating and take advantage of the recently installed Solar Panels. So the house has a new fully electric HVAC system installed by Nur HVAC. Islam came and took the measurements so the system could be ordered and priced. Soon Alex and the installation team arrived to install the system. The quality of the installation and the care Alex and team took during the custom wiring, new refrigerant lines, new moisture drains, new thermostats, system setup and calibration was outstanding. Alex made sure that the air flow for both heating and cooling was measured and far better than the previous systems. Alex made sure to keep us informed as progress was being made and they managed to keep the house clean during the install. Again Nur HVAC exceeded expectations with a very high quality install at a fair price. A project of this size had a few bumps but this appeared to have been done to provide a quality install with attention to detail. This company has superb knowledgeable professionals working for it from service to installation. I highly recommend Nur HVAC.”
“We have used NUR HVAC for maintenance and repair multiple times over the years. The receptionist is friendly and dispatches technician timely whenever possible. Islam, the technician who worked with us in the past two years, is always on time for the scheduled appointment, technically competent and also very friendly and patient when answering my questions related to our 2 HVAC systems. Thank you Islam! We will definitely continue to use NUR HVAC’s service.”
“I could not be happier with the work Nur HVAC did. Mine was a large residential job, replacing 2 furnaces and 2 HVAC units. I procured 3 estimates from different companies and Nur provided the most detailed estimate at the lowest price. Communication was good throughout the process and the project was finished on time. I'm most happy about the quality of the work. It is meticulous! The entire project was a great experience.”
“Last month, we contracted NUR HVAC to install three units of Mitsubishi ductless AC units to our house. The sales contact Artur was very professional, always addressed our questions very quickly and clearly. Their office support Regina was proactive and timely communicated important information for our awareness ahead of time. Their two technicians Maxim and Alksei have done done an excellent job to install the units and relevant pipes. We are very satisfied with the quality of Nur HAVC's work, their competitive price and excellent customer services, and definitely recommend this company for others who are seeking professionals to do the similar service. George and Amy from Redwood Shores, CA”
“Alexey from NUR HVAC was a total pro! He was friendly and clearly communicated the repair plan (schedule, likely costs) as my Carrier HVAC circuit board was damaged but replaced under warranty. And when Carrier/brand mixed up and sent the wrong part, he quickly got them to resend and rushed down that same day to install it. Highly recommend NUR and Alexey!”
“Amazing job! 2 gentleman work smoothly and super fast and clean. There are no garbage after they finished. Highly recommend!!”
“Our experience with NUR was simply awesome from start to finish. The quoting process (with Artur) was fantastic: he knew his stuff, could explain the "ins and outs" of every system choice in great detail (I had done my research and had a lot of very specific questions ready). I found him to be incredibly communicative, appreciated that he produced a really detailed quote and handled all the scheduling and logistics including permits. Our building is a tricky site because we are on a hill, so Artur even coordinated with a scaffold company on our behalf so the refrigerant line could be installed, and negotiated with them to lower the price. Shalai was our lead installer, and was incredible. He and his team were all super friendly, always respectful of our home, extremely clean and tidy, very detail-oriented, took their time to do the work (versus rushing to get to the next job) and checked in daily. I wanted a couple of things done very specifically with the plenum and filter box, and they were happy to accommodate everything, no questions asked. The install is a thing of beauty. Would absolutely recommend, great company.”
“We had the system shutting off too soon. Elias found the problem: vermin had chewed through an important wire!”
“Adlan C. was our technician and was very helpful, knowledgeable, and thorough. I would recommend NUR HVAC to others as a trustworthy service provider.”
“Superior service. Fedor promised a high quality install, and delivered beyond expectations. The installers did a high quality install. There were no shortcuts taken. They did everything they could to make the install go smoothly. I cannot recommend them enough.”
“Very professional, all installation was excellent, quick and clean. Would recommend fully.”
“Nur HVAC recently installed a mini-split system in our SF condo; one in the living room, and one each in the two bedrooms. They installed the heat pump outside on the balcony. I was impressed with their work ethic and the way they kept our space clean during the installation. They cleaned up at the end of each work day and were very respectful and thoughtful of our home, our dog, and us. They communicate clearly and quickly; I would highly recommend them to install an AC system.”
“Very competitive price. Very professional estimate and installation process.”
“The people at NUR did a fabulous job installing a new heat pump, and at a very competitive price. The crew was communicative, on-time, and very professional. About a year later we're very much enjoying our (still) new heating/cooling system!”
“Adlan was amazing. Our apartment hvac was not functioning appropriately and Adlan analyzed the situation diligently and efficiently fixed the found issues.”
“Professional, detailed, and super hard working. NUR did a fantastic job replacing my air conditioner. Highly recommend!”
“Furnace replacement. Very professionally done. Price was significantly below a competitive bid. I would recommend. English as a second language for the installers presented a challenge, but the end result, so far, has been great.”
“The best in service, as always! Thanks, David and team”
“Alex and Dil were extremely professional. They did amazing job and our project manager Arthur was always provided updates”
“We've only had a diagnostic so far, but the technician Adlan was awesome. We were super impressed so far. We hope to see him again for the repair.”
“I’m very pleased with Nur HVAC. I have an older AC unit, and Islam was able to successfully repair it while clearly explaining the work and showing me the before-and-after measurements so I could understand the difference. He also patiently answered all my questions. I am very satisfied with the service.”
“Alexey is fantastic. He did a great job. I would absolutely recommend NUR HVACand Alexey”
“Adlan was so professional, knowledgeable and an excellent technician. Glad we called!!!”
“Adlan is very nice and thorough with his explanations.”
“After 18 years our Air Conditioning System failed. We, of course, called Nur HVAC and were glad to see Islam again. He rapidly diagnosed that the AC compressor failed and had to be replaced. However, the AC system was so old that the compressor only had a 1 year warranty and the refrigerant in use 18 years ago is only available for legacy repairs (This is to protect the Ozone layer). We could have replaced the AC system, but the heating system was equally old and likely to fail. The cost to move to a full all electric HVAC system was a few dollars more than just replacing the AC system and it would eliminate our use of gas for heating and take advantage of the recently installed Solar Panels. So the house has a new fully electric HVAC system installed by Nur HVAC. Islam came and took the measurements so the system could be ordered and priced. Soon Alex and the installation team arrived to install the system. The quality of the installation and the care Alex and team took during the custom wiring, new refrigerant lines, new moisture drains, new thermostats, system setup and calibration was outstanding. Alex made sure that the air flow for both heating and cooling was measured and far better than the previous systems. Alex made sure to keep us informed as progress was being made and they managed to keep the house clean during the install. Again Nur HVAC exceeded expectations with a very high quality install at a fair price. A project of this size had a few bumps but this appeared to have been done to provide a quality install with attention to detail. This company has superb knowledgeable professionals working for it from service to installation. I highly recommend Nur HVAC.”
“We have used NUR HVAC for maintenance and repair multiple times over the years. The receptionist is friendly and dispatches technician timely whenever possible. Islam, the technician who worked with us in the past two years, is always on time for the scheduled appointment, technically competent and also very friendly and patient when answering my questions related to our 2 HVAC systems. Thank you Islam! We will definitely continue to use NUR HVAC’s service.”
“I could not be happier with the work Nur HVAC did. Mine was a large residential job, replacing 2 furnaces and 2 HVAC units. I procured 3 estimates from different companies and Nur provided the most detailed estimate at the lowest price. Communication was good throughout the process and the project was finished on time. I'm most happy about the quality of the work. It is meticulous! The entire project was a great experience.”
“Last month, we contracted NUR HVAC to install three units of Mitsubishi ductless AC units to our house. The sales contact Artur was very professional, always addressed our questions very quickly and clearly. Their office support Regina was proactive and timely communicated important information for our awareness ahead of time. Their two technicians Maxim and Alksei have done done an excellent job to install the units and relevant pipes. We are very satisfied with the quality of Nur HAVC's work, their competitive price and excellent customer services, and definitely recommend this company for others who are seeking professionals to do the similar service. George and Amy from Redwood Shores, CA”
“Alexey from NUR HVAC was a total pro! He was friendly and clearly communicated the repair plan (schedule, likely costs) as my Carrier HVAC circuit board was damaged but replaced under warranty. And when Carrier/brand mixed up and sent the wrong part, he quickly got them to resend and rushed down that same day to install it. Highly recommend NUR and Alexey!”
“Amazing job! 2 gentleman work smoothly and super fast and clean. There are no garbage after they finished. Highly recommend!!”
“Our experience with NUR was simply awesome from start to finish. The quoting process (with Artur) was fantastic: he knew his stuff, could explain the "ins and outs" of every system choice in great detail (I had done my research and had a lot of very specific questions ready). I found him to be incredibly communicative, appreciated that he produced a really detailed quote and handled all the scheduling and logistics including permits. Our building is a tricky site because we are on a hill, so Artur even coordinated with a scaffold company on our behalf so the refrigerant line could be installed, and negotiated with them to lower the price. Shalai was our lead installer, and was incredible. He and his team were all super friendly, always respectful of our home, extremely clean and tidy, very detail-oriented, took their time to do the work (versus rushing to get to the next job) and checked in daily. I wanted a couple of things done very specifically with the plenum and filter box, and they were happy to accommodate everything, no questions asked. The install is a thing of beauty. Would absolutely recommend, great company.”