Heat Pump & Water Heater Rebates

Heat Pump Rebates

Heat pumps – a clean, efficient way to heat and cool your house 

Planning to install air conditioning, remodel, have an old furnace, or just want to switch from methane gas? If so, consider a heat pump heating, ventilation, and air conditioning (HVAC) system: it provides both heating and cooling. Heat pumps are clean, safe, and all-electric and Peninsula Clean Energy offers customer rebates of up to $3,500.

Get a 0% interest loan up to $10,000 with no credit check and no money down for heat pump HVAC through our Zero Percent Loan program

Water Heater Replacement Rebates

If you’re planning to transition to a clean energy home, your WATER HEATER is a great place to start. Nearly 60% of the methane gas used by homes is for heating water. Heat pump water heaters are clean, safe and all-electric, and Peninsula Clean Energy is offering up to $3,000 in customer rebates.

Where additional rebates are available, they can be added to Peninsula Clean Energy’s incentives. For example:

  • The BayREN Home+ program offers rebates in San Mateo County (installation must be with a BayREN participating contractor)
  • Redwood City offers $500. Learn more and apply here

Heat Pump HVAC

Peninsula Clean Energy


*Replace gas heater/furnace


$0 – $1,000

Heat Pump Water Heater

*Replace methane gas water heater



*Replace electric resistance water heater



Applicable for both

*Electrical panel upgrade



*Time limited bonus for installations completed by March 31, 2023



*CARE/FERA Customers



  1. HPWH and HP HVAC upgrades must meet Peninsula Clean Energy installation requirements to be eligible for the rebate. Review detailed requirements before you start your project.
  2. The BayREN Home+ program is an independent regional program. You are not required to work with BayREN to access Peninsula Clean Energy rebates. However, for BayREN rebates you must work with a BayREN Participating Contractor and meet BayREN’s eligibility requirements. Peninsula Clean Energy will do its best to keep BayREN rebate amounts up-to-date, however they are subject to change without notice. Visit the BayREN Home + website for their most up-to-date program information.
  3. Combined rebates cannot exceed project costs. Review detailed requirements for more details.

Eligibility requirements

  • Be a resident of San Mateo County
  • Own the residence where upgrades are installed

Next steps

Please note that the rebate application process varies according to if you are working with a BayREN Participating Contractor or not.

  1. Plan your project: find a contractor (if you are in San Mateo County, we recommend using a BayREN Participating Contractor) and review our program requirements. Use BayREN Home Energy Advisors for assistance as needed.
  2. Install your equipment and retire your old gas equipment. Make sure to get a building permit for your project from your city.
  3. Apply for your rebate
    1. If you are in San Mateo County you may work with a BayREN Participating Contractor, who will submit the application for you. 
    1. If you are in San Mateo County and NOT working with a BayREN Participating Contractor, apply here.
  4. Receive rebate The application will be processed and rebate checks will be sent to you from Peninsula Clean Energy and BayREN (if applicable).


I installed a heat pump HVAC system before October 1, 2022. Am I eligible for the Peninsula Clean Energy rebate? 

No, only systems installed on or after October 1, 2022, are eligible for the rebate.  

Do I have to use a BayREN Participating Contractor to be eligible for the rebate? 

You do not have to use a BayREN participating contractor to be eligible for the Peninsula Clean Energy rebates. You can work with any contractor you’d like or even do the project yourself.  

However, you do have to use a BayREN participating contractor to be eligible for BayREN rebates. We recommend working with BayREN participating contractors because they are vetted to ensure customers receive quality service. These contractors are highly experienced and will be able to submit the application on your behalf for both BayREN and Peninsula Clean Energy rebates. If a contractor you want to work with is not a BayREN participating contractor, please encourage them to join the program

I have two gas heaters/furnaces in my home and want to replace them both with one heat pump each. Can I get a rebate for each? 

Yes, two heat pump HVAC rebates are eligible per electric account. For more exact language, as stated in our terms & conditions, the heat pump HVAC rebates are “limited to one rebate per condensing unit (or packaged unit). Maximum rebate of up to $7,000 per electric account (excluding bonus rebates).” 

I want to install a heat pump HVAC system to provide air conditioning to my home but would like to keep my gas heater/furnace for space heating, am I eligible for the rebate?  

No, as stated in our program terms & conditions, you must decommission your existing gas heater/furnace (e.g. take out gas equipment or cap gas line) to be eligible for the rebate.  

I need to upgrade my electrical panel for another project. Am I eligible for the electrical panel rebate? 

To be eligible for the additional electrical panel upgrade rebate, it needs to be paired with a heat pump HVAC or heat pump water heater installation. If you are not doing either of those things, you are not eligible for the panel rebate.