06/05/2026
Increased Rebate Amount for Heat Pump Water Heaters
SV Clean Energy customers get pumped up for increased incentives to go electric
Sunnyvale, Calif. – Silicon Valley Clean Energy (SVCE) has increased the rebate amount for heat pump water heaters (HPWH) by $500, bringing the total rebate amount to $2,500 for replacing gas water heaters with efficient, electric water heaters. HPWHs, unlike gas water heaters, operate without combustion, improving home air quality and safety.
“SVCE is here to help our communities in the transition to all-electric living and enjoy the health, safety and ongoing benefits of this electric equipment,” said SVCE Board Chair and Sunnyvale Mayor Larry Klein. “We recognize that in any appliance upgrade, cost can be a barrier - and we aim to reduce that barrier for our customers by increasing this incentive.”
On top of this increase, more funding will be available in the months of May, June, September and October when a limited-time $500 bonus rebate will be applied. The total rebate amount in these months will be $3,000.
HPWHs are three to four times more efficient than gas or tankless units and can save the average home $300-$400 a year on energy bills, based on a recent study conducted by SVCE and Peninsula Clean Energy.
To help customers make the switch to clean, efficient equipment, SVCE also offers rebates on heat pump heating and cooling systems, induction cooktops/ ranges, prewiring/wiring and circuit devices, with increased rebate amounts for income-qualified customers. Since 2018, SVCE customers have claimed more than $2.5 million in rebates for heat pump water heaters and over $10.5 million in total rebates for electric home upgrades.
SVCE rebates are stackable with other local and state incentives. Residents of Los Altos, Milpitas, Mountain View, and Sunnyvale may be able to receive additional rebate funding through city-specific incentive programs - which will be automatically added when customers go through the SVCE rebate application process.
The rebate increase comes ahead of Bay Area Air District appliance rules that require new water heaters and furnaces to meet air pollution standards by 2027 and 2029, respectively (the rules do not require replacing existing, functioning equipment). As a not-for-profit public agency responsible for clean energy procurement and reducing local emissions, SVCE and its governing Board of Directors are working to support local community needs in preparation of the regional regulations.
Beyond rebates, SVCE offers multiple pathways to go electric. SVCE customers can reserve a rebate themselves, choose an assisted path that matches recommendations with competitive quotes, or opt for a full home service that applies rebates upfront, connects homeowners with experienced contractors, pre-negotiates fixed pricing, and more.
To claim a heat pump water heater rebate and learn more about the rebate process for all electric home appliances, visit https://svcleanenergy.org/home-rebates/.
