Heating and air conditioning

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 $3,500.

Heat pump condenser evaporator unit
Heat pump condenser evaporator unit

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

  • A qualified contractor can evaluate your home and help you choose system type, model selection, location, and other factors related to the ease and cost of installation
  • Heat pump HVAC can be integrated with your central air system; there are also ductless models for rooms that do not have central air ducts
  • Our rebates help offset the cost of heat pump systems and are also available for upgrades to your electric panel, if needed 
  • We also offer zero percent interest loans for heat pump HVAC

Methane gas leaks and combustion of methane contribute to climate change and are unhealthy and potentially hazardous in the home. Heat pumps have been around for decades – refrigerators and window air conditioners both use heat pumps.

  • Efficient: Heat pump HVAC designs for the home provide heat for less than 1/3 the energy used by a gas furnace, and also keep you cool in the summer
  • Safe: Heat pumps are all-electric – no gas combustion emissions or hazards 
  • Clean: Heat pumps powered by Peninsula Clean Energy are 100% clean

Peninsula Clean Energy rebates make it easier for residents in its member communities to transition to a clean energy home.  

The BayREN Home+ program also offers additional rebates for San Mateo County residents that can be layered on top of Peninsula Clean Energy rebates.  BayREN rebates are only available if you work with a BayREN Participating Contractor. 

Peninsula Clean Energy 1BayREN 2Total3
Heat pump HVAC
Replace gas heater/furnace$3,500$0-$1,000$3,500 – $4,500
Additional bonus rebates
Electrical panel upgrade$1,500$0$1,500
Time limited bonus for installations completed by March 31, 2023$500$0$500
CARE/FERA customers$1,000$0$1,000
  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. BayREN only covers the Bay Area and is therefore not applicable to City of Los Banos residents.
  3. Combined rebates cannot exceed project costs. Review detailed requirements for more details.

  • Be a resident of San Mateo County or the City of Los Banos 
  • Own the residence where upgrades are installed  

Please read the terms & conditions for full eligibility details and program requirements. 

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
    • If you are in San Mateo County you may work with a BayREN Participating Contractor, who will submit the application for you. 
    • If you are in Los Banos or 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 behalf of the customer 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 hater/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.  

I am interested in installing a heat pump water heater. Am I eligible for Peninsula Clean Energy rebates? 

Yes, Peninsula Clean Energy also offers heat pump water heater rebates of up to $3,000. More details here. 

What if I have a question that is not answered here? 

If you have additional questions about the Peninsula Clean Energy rebates, contact Programs@PenCleanEnergy.com  

If you live in San Mateo County and have questions about heat pumps, home electrification or energy efficiency projects, you may contact a BayREN Energy Advisor at (866) 878-6008 or advisor@bayren.org.   

If you have questions about our rebates for heat pump HVAC, please contact programs@peninsulacleanenergy.com.