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Heat Pump Rebates in the Bay Area (2026): What's Still Available

In November 2026, most heat pump money in the Bay Area comes from your local electricity provider: Silicon Valley Clean Energy, San José Clean Energy, City of Palo Alto Utilities, WestLight Energy or CleanPowerSF. The federal 25C tax credit ended December 31, 2025, and statewide single-family funds are reserved. Most programs pay only when a heat pump replaces gas heat.

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By the Nur HVAC team · Updated November 9, 2026 · Program details checked November 2026 · 14 min read

Before

After

The swap most rebates are written for. A gas furnace in a San Mateo utility space, and the heat pump air handler that took its place.

Checked November 2026.Rebate amounts and budgets change, sometimes mid-month. Where a program page didn't show a clear amount, we left the number out and linked the page. Confirm on the program page before you sign a contract.

Quick answer: it depends on who supplies your electricity

Your city matters less than the name on the generation line of your electric bill. Find it there, then read the matching row.

Silicon Valley Clean Energy
Mountain View, Sunnyvale, Cupertino, Los Altos, eight other cities and unincorporated Santa Clara County. $2,000 when a heat pump replaces a gas furnace; some cities pay differently. Reserve first.
San José Clean Energy
San Jose. $1,500 when a heat pump replaces gas heating, $2,500 in Environmental Justice Communities. Approval before installation.
City of Palo Alto Utilities
Palo Alto. Up to $2,500 for a heat pump that replaces a gas heater, up to $5,000 for income-eligible homes.
WestLight Energy
San Mateo County, formerly Peninsula Clean Energy. $1,500 per heat pump that replaces gas heat, $1,000 more for CARE/FERA. Apply after the install.
CleanPowerSF
San Francisco. Up to $1,200 in bill credits over 24 months for heat pump heating, with an electrification rate.
Statewide and federal
Federal 25C ended. TECH Clean California single-family funds and HEEHRA in Northern California are reserved.

Find the programs for your city

Pick your city. You'll see the electricity provider that most homes there have, and the programs worth checking. If you opted out of your community provider and buy power straight from PG&E, ask the program whether you still qualify.

Where is the house?

Your electricity provider is most likely

San José Clean Energy (PG&E delivers the power)

Programs to check

San José Clean Energy EcoHome Rebate
$1,500 when a heat pump replaces gas heating, $2,500 for households that meet the Environmental Justice Community rules. Approval comes before installation. Dual fuel systems aren't eligible. An interest-free payment plan up to $5,000 is repaid on your electric bill.
Program page ↗
BayREN
Regional rebates through participating contractors. The amounts we found in different listings don't match, so check the current amount on the program page.
Program page ↗
TECH Clean California and HEEHRA (statewide)
HEEHRA single-family rebates have been fully reserved statewide since February 24, 2026, and new Northern California requests go on a waitlist. TECH's only new single-family offer is for San Fernando Valley homes near Aliso Canyon. Don't plan a Bay Area project around either one.
Program page ↗

If your PG&E bill doesn't show San José Clean Energy as the generation provider, ask SJCE whether EcoHome still applies to you.

Ask us to check your address: +1 (650) 542-8555

Bay Area heat pump rebates, program by program

For each program: who it's for, what it pays toward, how much where the program page states it, how the money arrives, and whether it's open. We read each official page in November 2026.

Silicon Valley Clean Energy (SVCE)

SVCE serves Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale and unincorporated Santa Clara County. Its rebates cover single-family homes, mobile homes, ADUs and buildings with four units or fewer. It pays for replacing existing equipment, not for new construction, and it pays one rebate per appliance type per home.

The core table shows $2,000 for a heat pump that replaces a gas furnace and $500 for one that replaces electric resistance heat. Income-qualified households get more, but when we checked, the page listed two different figures for the gas replacement, so confirm yours. Customers in Los Altos, Los Altos Hills, Milpitas, Mountain View and Sunnyvale are sent to a City Rebates tab with their own amounts. Sunnyvale funds higher heat pump HVAC rebates; the extra Los Altos city money has run out.

Contractor: Any licensed contractor. Permitted DIY projects qualify too.
Before install: Reserve the rebate; it has to be approved before installation and is held up to 120 days. After an emergency replacement, email SVCE first.
How it's paid: By mail to you or your contractor, about 4 to 6 weeks after approval. Never more than the project cost.
Status: Open. City money is first come, first served. SVCE's 0% financing closed to new enrollment on April 30, 2026.

SVCE Home Rebates ↗

San José Clean Energy EcoHome Rebate

San José Clean Energy pays an EcoHome rebate of $1,500 when a heat pump replaces gas heating, or $2,500 for households that meet its Environmental Justice Community rules (a mapped neighborhood plus income, or enrollment in CARE, FERA or SJ CARES). Ducted systems and ductless mini-splits both qualify if they replace a gas furnace, and the system needs SEER2 16 or higher. Dual fuel systems don't qualify, and the old gas appliance has to come out with its line capped.

The part people overlook is the EcoHome Payment Plan: interest-free, no money down, up to $5,000 over as long as five years, repaid on your monthly electric bill. A panel upgrade add-on pays $1,000 ($2,000 in Environmental Justice Communities) when the old panel is under 200 amps. SJCE also lists contractors who have finished three or more EcoHome installs, and says it doesn't endorse any of them.

Who: San José Clean Energy customers, owners and renters. The primary PG&E account holder applies.
Before install: Approval is required before work starts. Funds are held 120 days. Upload a photo of the old equipment with the application.
How it's paid: PayPal, Venmo or check after a claim with the itemized invoice, final permit and photos.
Status: Open in November 2026.

SJCE EcoHome Rebate ↗

City of Palo Alto Utilities (CPAU)

Palo Alto runs its own utility, so PG&E-area programs aren't where you start. CPAU pays up to $2,500 for a heat pump that replaces a gas or other fossil fuel heater, and up to $5,000 for income-eligible households through its REAP program. If the same project also installs a heat pump water heater, you can get both rebates, but you apply for each one separately.

There are two ways to claim it. An Instant Rebate Partner contractor applies for you and the rebate comes off the price. Otherwise you reserve first: approval takes about five business days and the money is held for up to 120 days. The final application is due within 90 days of the final inspection. Instant Rebate Partners are marked in the Rebate Hub's contractor directory.

Add-ons: Panel upgrade up to $1,000, $2,000 if income-eligible. The new panel can't exceed 200 amps. Add-ons need a core appliance rebate.
How it's paid: Off the invoice with an Instant Rebate Partner, or a check in about 5 to 6 weeks.
Contact: 650-713-3411, switch@paloalto.gov
Status: Open. A limited-time water heater bonus ran July 1 to October 31, 2026 and has ended.

Palo Alto Rebate Hub ↗

WestLight Energy, formerly Peninsula Clean Energy

Peninsula Clean Energy became WestLight Energy on July 1, 2026. It supplies electricity in San Mateo County and Los Banos, which covers San Mateo, Redwood City, Burlingame, Menlo Park, San Carlos, Belmont, Foster City and the rest of the county. If you searched for the Peninsula Clean Energy rebate, this is where it went.

WestLight pays $1,500 for a heat pump that replaces a gas heater or furnace, one rebate per outdoor unit and up to two per electric account. CARE/FERA customers get another $1,000 per rebate. A panel upgrade adds $1,000, and a smart load management device $500. Unlike SVCE and San José, you apply after the install, within 90 days, with the itemized invoice, the city permit and photos of the old equipment or the capped gas line. You have to own the home, and new construction doesn't qualify.

Who: WestLight customers in San Mateo County and Los Banos who own the property.
Contractor: Any contractor, or a permitted self-install. The 0% loan, up to $10,000, needs an approved contractor.
How it's paid: A mailed check, four to six weeks on average. It goes to the contractor only if they applied and passed the full rebate to you as a discount.
Status: Open, first come, first served. WestLight says it announces changes a month ahead. Phone 866-966-0110.

WestLight appliance rebates ↗

San Francisco: CleanPowerSF

CleanPowerSF's Electrify Your Home program pays in bill credits rather than a check: $50 a month for 24 months, up to $1,200, for heat pump heating finished on or after April 14, 2026. A heat pump water heater installed on or after March 15, 2025 earns the same. CARE/FERA customers get 12 more months, another $600, automatically. You apply after the upgrade, the work needs a DBI permit, and you have to enroll in an electrification rate such as E-ELEC or EV2-A.

CleanPowerSF Electrify Your Home ↗

BayREN (nine Bay Area counties)

BayREN offers rebates for heat pump HVAC and heat pump water heaters across the nine-county Bay Area. Its main rebate page didn't show amounts when we checked, and the figures on directory sites ranged widely, so check the current amount on the program page. Listings say a participating contractor is required for central heat pumps and mini-splits. Ask before you sign whether your contractor is enrolled.

BayREN rebates ↗

Air District Clean HEET (wood stoves and fireplaces)

If the house still heats with wood, this is the biggest number in the Bay Area. The Air District's Clean HEET program reopened on November 2, 2026 and pays to replace a wood-burning stove, insert or fireplace with an electric heat pump: up to $15,000 for a wood stove or insert made in 2014 or earlier, $10,000 for one from 2015 to 2019, and $12,000 for an open-hearth fireplace. Qualifying low-income homeowners can get up to $10,000 more. Applications close March 10, 2027, and the program doesn't pay for work already done.

Clean HEET Program ↗

PG&E

We didn't find a direct PG&E rebate for heat pump HVAC. Two PG&E offers are still worth knowing about. PanelBoost is aimed at single-family homes with a 150-amp or smaller panel and uses smart load balancing, which can help a heat pump fit without a full panel upgrade. In November 2026 it's a waitlist: email panelboost@pge.com to join. E-ELEC is PG&E's electric home rate with its own time-of-use prices; compare it with your current plan once the heat pump is running.

PG&E PanelBoost ↗

What ended or ran out, and why old articles still promise it

Most heat pump rebate articles you'll find were written in 2024 or 2025, when federal and state money was at its peak. Contractor pages and rebate directories don't always get updated, so the totals they quote stack money that is gone.

Federal 25C tax credit
Ended for equipment installed after December 31, 2025. No federal tax credit has replaced it.
TECH Clean California, single-family
No single-family incentive open for Bay Area homes. The only new offer, announced November 2, 2026, is for San Fernando Valley homes near Aliso Canyon. TECH points everyone else to Switch Is On.
HEEHRA (federal money run by TECH)
Fully reserved statewide. Northern California since February 24, 2026. New reservations go on a waitlist, and a waitlisted project only qualifies if the heat pump is installed after approval. New income verification isn't accepted.
The next HEEHRA phase
There's talk of a point-of-sale phase through retailers, but no official launch date. Installing before a program launches usually disqualifies you, so don't wait on it.
Limited-time bonuses and financing
SVCE's $500 water heater bonus and Palo Alto's July to October 2026 water heater bonus have both ended. SVCE's 0% financing closed to new enrollment on April 30, 2026.
City top-ups
Los Altos extra city funds are gone. City money is first come, first served, so a top-up you saw in spring may not be there now.

Can you stack heat pump rebates?

Often, within limits each program sets for itself. A few patterns hold across the programs above.

Provider plus city. In SVCE territory, city money in places like Sunnyvale and Milpitas runs through the same SVCE application. In Los Altos Hills the town pays its water heater rebate separately, on its own website.

Add-ons need a core appliance. SVCE's $1,000 electrical infrastructure rebate and Palo Alto's panel rebate only pay when you also install a core appliance like a heat pump or heat pump water heater. A panel upgrade on its own doesn't qualify.

Heating plus hot water. Doing the furnace and the water heater on one project can earn two rebates. Palo Alto says you apply for each separately.

Caps. SVCE and San José Clean Energy won't pay more than the project cost, and WestLight notes that not every incentive can be combined. SVCE also says state and federal programs can complement its rebates, which mostly matters today if you already hold an approved HEEHRA reservation.

Read the stacking line on each program page, and reserve every program that requires it before the work starts. Missing one reservation can cost you the whole rebate.

How to actually get the money: before, during and after the install

1
Before: find your provider
Look for the generation provider on your PG&E bill, or your CPAU bill in Palo Alto. That decides which program you start with.
2
Before: write down what you have now
Gas furnace, gas wall heater, electric baseboards or an old heat pump. Programs pay different amounts, or nothing, depending on what's being replaced. Take photos of the old equipment and its label before it comes out; some programs ask for them.
3
Before: check the contractor rule
SVCE, WestLight and San José Clean Energy accept any qualifying contractor. BayREN listings say you need a participating one. Palo Alto has Instant Rebate Partners. Ask your contractor which applies before you sign.
4
Before: reserve where it's required
SVCE, San José Clean Energy and Palo Alto want approval before installation and hold funds for up to 120 days. Get the approval in writing and note the expiration date. WestLight and CleanPowerSF take the application after the install.
5
During: keep the paperwork clean
An itemized invoice, equipment model and serial numbers, and the permit number. California requires a city permit and a HERS verification for most heat pump changeouts, and SVCE pays only after the permit is finaled.
6
After: final inspection, then apply
Apply once the city has signed off. Palo Alto wants the final application within 90 days of the final inspection, WestLight within 90 days of installation. Most programs ask for the itemized invoice, permit and photos.
7
After: wait for the money
About four to six weeks for SVCE and WestLight checks, five to six for Palo Alto. Instant rebates show up on the invoice, and CleanPowerSF pays as monthly bill credits.

Heat pump water heater rebates, in short

Rheem heat pump water heater installed in a San Mateo garage next to the washer — Rheem heat pump water heater · San Mateo

Water heaters have their own deadline. Under the Bay Area Air District's Rule 9-6, amended November 4, 2026, only zero-NOx water heaters can be sold or installed starting January 1, 2028. There are exemptions for qualifying low-income owners and for homes with serious electrical or space limits. Your current gas tank can keep running; the rule matters when you replace it.

For a heat pump water heater that replaces a gas tank, SVCE's core table shows $2,500 ($1,000 replacing an electric tank). WestLight and Palo Alto both show $3,500 replacing gas and $500 replacing electric resistance. San José Clean Energy pays $2,500, or $3,500 in Environmental Justice Communities, and only when the old tank is gas. CleanPowerSF gives up to $1,200 in bill credits for installs on or after March 15, 2025.

Planning the switch before the old tank leaks gives you time to reserve a rebate. When a tank fails on a Sunday, there's rarely time to reserve anything. More on heat pump water heater installation and the Air District's appliance rules.

Recent jobs in these rebate areas

These are real installs from our project map, one or two per provider area. They show what the work looks like. We're not saying what, if anything, each homeowner received in rebates.

Mitsubishi 3-ton heat pump on a concrete pad beside a San Mateo house — Mitsubishi heat pump · San Mateo

San Mateo: gas furnace out, Mitsubishi heat pump in

An old Carrier WeatherMaker gas furnace sat squeezed between a wall and the water heater. We measured the space at the estimate visit, then set a 3-ton Mitsubishi air handler on the same platform with a filter cabinet on top, and a matching outdoor unit on a pad along the side of the house. The photo of the old furnace from that first visit is exactly the kind of record rebate programs ask for. Read the project.

New Carrier heat pump outdoor unit installed at a Menlo Park home — Carrier heat pump · Menlo Park

Menlo Park: off gas, through the existing ducts

The homeowner wanted to move off a gas-dependent setup. The new Carrier air handler went into the mechanical closet and connected to the existing ductwork, with a new wall controller. We pulled the permit and the system passed its HERS test, which is the paperwork a rebate claim leans on. Read the project.

New Carrier air handler and insulated ductwork in a Palo Alto attic — Attic air handler, Carrier · Palo Alto

Palo Alto: attic air handler and rebuilt ducts

A 3-ton Carrier heat pump with a new attic air handler on a platform, a sealed supply plenum and return, fresh insulated flex duct, and a float switch that shuts the system off before a clogged drain can drip through the ceiling. Permit and HERS test passed. Read the project.

New indoor air handler for a Carrier heat pump in Sunnyvale — Air handler, Carrier heat pump · Sunnyvale

Sunnyvale: all-electric heating and cooling

An aging heating and cooling system replaced with a Carrier heat pump and new air handler. New circuits, weatherproof junction boxes and a dedicated outdoor disconnect, permitted with the City of Sunnyvale and HERS-verified before we handed it back. Read the project.

New Carrier 3-ton heat pump on its pad beside a San Jose house — Carrier 3-ton heat pump · San Jose

San Jose: one system instead of two

The owners replaced an older Carrier outdoor unit with a 3-ton Carrier heat pump in the same spot, plus a new attic air handler with eight supply vents and a return. New disconnect, wiring in conduit and a surge protective device. A two-person crew spent about nine hours on site. Read the project.

What our estimate covers on rebates

01
We look at what heats the house now
Gas furnace, wall heaters or electric baseboards, plus the ducts and the electrical panel. That decides both the system and which rebate lines apply.
02
We check the program for your address
Before we order equipment, we confirm which program covers you and whether it needs approval before installation, so you don't miss it.
03
We handle the job and help with the paperwork
Permit, inspection and HERS test, Mitsubishi warranty registration on qualifying systems, and the documents your rebate application needs.

We've been a Mitsubishi Electric Diamond Elite contractor since 2025, we're a Carrier dealer, and qualifying Mitsubishi installs are eligible for up to 12 years of coverage on parts and compressor. See heat pump installation, ductless mini-splits for homes without ducts, or our free electrification assessment.

Heat pump rebates: questions

Is there still a federal tax credit for heat pumps in 2026?

No. The federal 25C credit for energy-efficient home improvements doesn't apply to equipment installed after December 31, 2025, and nothing has replaced it. Articles that still count it in are out of date.

Can I still get the TECH Clean California rebate?

Not in the Bay Area right now. TECH's single-family page lists HEEHRA as fully reserved statewide, and the one new single-family offer it announced in November 2026 is limited to San Fernando Valley homes affected by the Aliso Canyon gas storage facility. It points everyone else to Switch Is On.

What happened to Peninsula Clean Energy rebates?

Peninsula Clean Energy became WestLight Energy on July 1, 2026, and the rebates moved to westlightenergy.org. In November 2026 WestLight lists $1,500 for a heat pump that replaces a gas furnace, $1,000 more for CARE/FERA customers, and $3,500 for a heat pump water heater that replaces a gas tank. You apply after the install, within 90 days.

Do I have to apply before the heat pump is installed?

It depends on the program. SVCE and San José Clean Energy require approval before installation. Palo Alto does too, unless an Instant Rebate Partner contractor applies for you. WestLight and CleanPowerSF work the other way: you apply after the upgrade, and WestLight wants the application within 90 days. If a failed furnace forced an emergency install, SVCE and San José Clean Energy ask you to email them before applying.

Do rebates cover replacing an old heat pump or a central AC?

The utility programs in this guide pay for moving off gas heat, and SVCE also pays a smaller amount for replacing electric resistance heat. We didn't find one that pays for swapping an old heat pump for a new one, or for a straight air conditioner.

Does a dual fuel system qualify for rebates?

San José Clean Energy says dual fuel systems aren't eligible, and San José and WestLight both want the old gas equipment removed or its gas line capped. Other programs pay for a heat pump that replaces gas heating, so keeping the furnace can cost you the rebate. Check the rules before you choose dual fuel.

Can I use any contractor?

For the rebate itself, mostly yes. SVCE accepts any licensed contractor and permitted DIY. WestLight accepts any contractor and self-installs, but its 0% loan needs an approved contractor. San José Clean Energy accepts any contractor without labor violations in the past three years. In Palo Alto, Instant Rebate Partners take the rebate off the price for you. BayREN listings say a participating contractor is required.

How long does it take to get the rebate?

SVCE says checks take about four to six weeks to arrive after approval. WestLight averages four to six weeks from application. Palo Alto quotes about five to six weeks for a check, and its instant rebates come off the invoice. San José Clean Energy pays by PayPal, Venmo or check, and quotes one to two weeks for a check. CleanPowerSF pays as monthly bill credits.

Quick answer: it depends on who supplies your electricity

Silicon Valley Clean Energy

San José Clean Energy

City of Palo Alto Utilities

WestLight Energy

CleanPowerSF

Statewide and federal

Find the programs for your city

Heat pump rebates for San Jose

Heat pump rebates for Palo Alto

Heat pump rebates for Mountain View

Heat pump rebates for Sunnyvale

Heat pump rebates for San Mateo

Heat pump rebates for Redwood City

Heat pump rebates for Burlingame

Heat pump rebates for San Francisco

Heat pump rebates for Los Altos

Heat pump rebates for Cupertino

Heat pump rebates for Somewhere else

Bay Area heat pump rebates, program by program

Silicon Valley Clean Energy (SVCE)

San José Clean Energy EcoHome Rebate

City of Palo Alto Utilities (CPAU)

WestLight Energy, formerly Peninsula Clean Energy

San Francisco: CleanPowerSF

BayREN (nine Bay Area counties)

Air District Clean HEET (wood stoves and fireplaces)

PG&E

What ended or ran out, and why old articles still promise it

Federal 25C tax credit

TECH Clean California, single-family

HEEHRA (federal money run by TECH)

The next HEEHRA phase

Limited-time bonuses and financing

City top-ups

Can you stack heat pump rebates?

How to actually get the money: before, during and after the install

Before: find your provider

Before: write down what you have now

Before: check the contractor rule

Before: reserve where it's required

During: keep the paperwork clean

After: final inspection, then apply

After: wait for the money