Diamond Contractor Elite · Palo Alto, CA · CPAU Rebates
Mitsubishi Mini-Splits & Heat Pumps in Palo Alto, CA
Palo Alto’s trusted Mitsubishi Electric Diamond Elite Contractor — expert mini-split and heat pump installations, upgrades and CPAU rebate assistance.
Mitsubishi mini-split & heat pump installation in Palo Alto
Alternative HVAC Solutions installs Mitsubishi Electric heat pumps and ductless mini-splits for Palo Alto homeowners, from Eichlers in Greenmeadow and Midtown to older homes in Old Palo Alto and Professorville. As a Mitsubishi Electric Diamond Contractor Elite based a short drive up Highway 101 in San Carlos, we design each system room by room, handle the City of Palo Alto permit, and help you claim City of Palo Alto Utilities (CPAU) electrification rebates for replacing gas heating with an all-electric heat pump.
City of Palo Alto Utilities
CPAU rebates for Mitsubishi mini-splits & heat pumps in Palo Alto
Palo Alto homes are served by City of Palo Alto Utilities, which offers its own electrification rebates. Core rebates apply when an all-electric appliance replaces a gas one; add-on rebates stack with a qualifying core rebate.
| CPAU rebate | Amount | Key requirement |
|---|---|---|
| Heat pump HVAC | $2,500 ($5,000 income-eligible) | Must replace a gas or fossil-fuel home heater |
| Heat pump water heater | $3,500 replacing gas | $500 when replacing an electric-resistance water heater |
| Electrical panel upgrade (add-on) | $1,000 ($2,000 income-eligible) | New panel capacity up to 200 amps |
| Attic / roof insulation (add-on) | Up to $1,000 | R-30 attics; R-19 for Eichlers and flat roofs |
| New circuit wiring (add-on) | $500 per circuit | Circuit serving a new heat pump HVAC system ($1,000 for a heat pump water heater) |
| Permit fee (add-on) | $662 per eligible permit | Heat pump HVAC, water heater and induction permits |
| Gas meter removal | $2,500 | Full electrification with proof of gas meter removal |
Palo Alto Homes
The right Mitsubishi system for Palo Alto homes
Ductless mini-splits for Palo Alto Eichlers
Flat roofs and in-floor radiant heat leave Eichlers without ducts. Low-profile Mitsubishi wall and floor units add efficient heating and air conditioning — and CPAU’s R-19 flat-roof insulation add-on pairs well with the project.
Whole-home heat pumps for ducted homes
Craftsman and traditional homes in Old Palo Alto, Professorville and Crescent Park often have existing ducts. A ducted Mitsubishi Hyper-Heating INVERTER® system replaces the gas furnace and AC in one step.
Single-zone systems for ADUs and remodels
A single-zone Mitsubishi mini-split is a simple, efficient way to heat and cool a new ADU, garage conversion, home office or addition without touching the main system.
Palo Alto Customer Review
What a Palo Alto Mitsubishi customer says
★★★★★“Got a heat pump installed for a very reasonable price, Mike was great in the initial quote process, and Ricardo and his crew came out and got everything finished up fast and with minimal disruption! They walked me through some system features and the filter location, and even helped me install a custom attachment to the thermostat to control it on my phone!”
Michael Palo Alto, CA · Google reviewMitsubishi heat pump
Palo Alto Neighborhoods
Serving every Palo Alto neighborhood
From north of Embarcadero to south of Oregon Expressway, our Mitsubishi crews work throughout Palo Alto and the surrounding communities.
Nearby: Menlo Park · Atherton · Los Altos · Portola Valley · all Peninsula service areas
Palo Alto FAQ
Palo Alto Mitsubishi mini-split, heat pump & CPAU rebate FAQs
Do Palo Alto homeowners qualify for heat pump rebates?
Yes. City of Palo Alto Utilities (CPAU) offers electrification rebates to Palo Alto residents with active CPAU electric and gas service. The core heat pump HVAC rebate applies when an all-electric heat pump replaces a gas or other fossil-fuel home heater.
How much does a Mitsubishi mini-split cost in Palo Alto?
The price of a Mitsubishi mini-split in Palo Alto depends on the number of zones, the indoor unit styles, line-set routing, electrical work and the city permit. A free in-home estimate gives you a written, itemized price with the CPAU rebates you qualify for already shown.
How much is the CPAU rebate for a heat pump HVAC system?
As of October 2026, CPAU offers $2,500 for heat pump HVAC that replaces gas heating, or $5,000 for income-eligible households. Add-on rebates for an electrical panel upgrade, new wiring, insulation and permit fees can stack on top. Check the CPAU Rebate Hub for current amounts.
Do I have to use a CPAU-listed contractor to get the rebate?
No. CPAU lets Palo Alto homeowners choose their own contractor. CPAU Instant Rebate Partners can take the rebate off at the point of sale; with any other licensed contractor, you apply through the CPAU Rebate Hub within 90 days of final inspection, and we provide the documentation you need.
Does Palo Alto offer rebates for electrical panel upgrades?
Yes. CPAU offers a $1,000 panel upgrade rebate ($2,000 for income-eligible households) as an add-on to a qualifying heat pump or other core electrification rebate. The new panel capacity cannot exceed 200 amps.
Are there extra incentives for going fully electric in Palo Alto?
Yes. CPAU offers a $2,500 gas meter removal incentive for homes that fully electrify, in addition to rebates for heat pump HVAC, heat pump water heaters and induction cooking.
Are Mitsubishi ductless mini-splits a good fit for Palo Alto Eichlers?
Yes. Eichlers have flat roofs, open beams and in-floor radiant heat with no room for ductwork, so low-profile Mitsubishi wall and floor units are a natural fit. CPAU also offers an insulation add-on rebate with an R-19 standard for Eichlers and flat roofs.
Do I need a permit to install a heat pump in Palo Alto?
Yes. Heat pump installations require a City of Palo Alto permit. We pull the permit and coordinate inspection, and CPAU offers a $662 permit fee rebate per eligible permit as an add-on.
Do Peninsula Clean Energy rebates apply in Palo Alto?
No. Palo Alto is served by its own municipal utility, City of Palo Alto Utilities, so Palo Alto homeowners use CPAU electrification rebates rather than Peninsula Clean Energy programs, which serve San Mateo County.
Which Palo Alto neighborhoods do you serve?
All of them, including Old Palo Alto, Professorville, Crescent Park, Midtown, Greenmeadow, Fairmeadow, Barron Park, College Terrace, Palo Verde and Charleston Gardens, plus nearby Menlo Park, Atherton, Los Altos and Portola Valley.
Why choose a Mitsubishi Diamond Contractor Elite in Palo Alto?
Diamond Contractors are trained directly on Mitsubishi Electric equipment, and qualifying installations can receive Mitsubishi’s extended 12-year parts and compressor limited warranty when registered.
Book a Palo Alto Mitsubishi mini-split or heat pump consultation
Tell us about your Palo Alto home. We’ll design the right Mitsubishi system, handle the City of Palo Alto permit and help you claim every CPAU rebate you qualify for.
- No-pressure, written proposal
- Rebate paperwork help
- 12-year warranty on qualifying installs*
