Heat pump water heater (HPWH)

Residential methane gas use Pie chart: Hot water 41%, Range/oven 5%, Dryer 2%, Misc 2%, Space Heat 50%

Residential methane gas use (California Residential Appliance Saturation Study – 2009)

If you’re planning to transition to a clean energy home, your water heater is a great place to start. At least 40% of the methane gas used by homes is for heating water.

Heat pump water heaters are clean, safe and all-electric. Peninsula Clean Energy is partnering with the Bay Area wide BayREN Home+ program to offer additional rebates for installing Heat Pump Water Heaters for San Mateo County residents. 

 A qualified contractor can evaluate your home and help you understand factors that may affect the ease and cost of installation, including: 

  • Electrical: You may need changes or upgrades to your panel.  You may also need electrical wiring to the point of installation. Rebates can help offset some of the costs! 
  • Location: HPWHs typically have larger space requirements than a methane gas storage water heater. HPWHs are best suited for installation in a garage, but may be installed in a closet if it is properly ventilated and sound-proofed. Modifications to the existing location or relocation may be needed.  

See below for rebates and next steps for a Heat Pump Water Heater for your home.

Benefits of Heat Pump Water Heaters

More efficient

At least three times more efficient than methane gas water heaters


No gas combustion emissions or hazards

Cleaner environment

Heat Pump Water Heaters powered by Peninsula Clean Energy use carbon-free electricity


Heat Pump Water Heaters can operate during power outages with solar + battery backup

Heat Pump Water Heater Rebates

Heat Pump Water Heater*
Peninsula Clean Energy
Replace methane gas water heater (any size)
Replace electric resistance water heater (>60 gals size)
Additional Bonus Incentives
CARE/FERA customers
Electrical panel upgrade to 100 amps
Electrical panel upgrade to 200 amps

*Heat pumps must have UEF of 3.1 or greater
**Combined rebates are not to exceed project costs
***Available until 9/30/2021


For San Mateo County residents

All installations must be completed on or after Jan 01, 2021

Must use a BayREN Participating Contractor (see table)

Your BayREN Participating Contractor will submit the rebate application for you and will make sure that all available incentives are applied.

BayREN Home Energy Advisors are available to assist the customer throughout the process.

Next steps

  1. Plan your Heat Pump Water Heater project, using BayREN Home Energy Advisors for assistance as needed.
  2. Install an eligible Heat Pump Water Heater through a BayREN Participating Contractor (see list below).
  3. After installation, your BayREN Participating Contractor will submit the application for you. Only one application is needed to receive all applicable rebates.
  4. Receive rebate: The application will be processed and rebate checks sent to you from Peninsula Clean Energy and BayREN.

Find a BayREN Participating Heat Pump Water Heater Contractor

These BayREN Participating Contractors install Heat Pump Water Heaters in San Mateo County.

If you have a preferred contractor that is not on this list, please encourage them to apply to become a BayREN Participating Contractor.

Peninsula Clean Energy does not benefit from the use of these links or selection of any contractor appearing here. Further, Peninsula Clean Energy does not guarantee the quality of work of contractors on this list.