Water Heating Upgrades
A better way to have hot water
When it comes to energy efficiency, a heat pump water heater (HPWH) is the best choice on the market. This means you save money when you switch. Plus, PCE offers a rebate up to $2,500 that can be combined with other cost-saving incentives, so upgrading could cost less than you think.

Benefits of Switching
Heat pump water heaters are safe, clean, and all-electric
If you’re transitioning 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.
Rather than using fossil fuels to create heat, a heat pump water heater (HPWH) works like a recycler, pulling heat from the air and warming your water. Choosing an heat pump water heater can save you thousands of dollars over the lifetime of the appliance.
Lower energy bills
Energy efficient
Climate friendliness
A future-proof home
Getting Started
Steps to upgrading your heat pump water heater
1
Check eligibility for rebates
Look into available rebates to save on upfront costs.
- See what PCE offers for heat pump water heater rebates
- Stack rebates with other federal, state and local incentives. Check Peninsula Clean Energy – Rebate Finder
2
Assess your space
Heat pump water heaters need good air circulation. A garage, basement, or utility room is ideal.
3
Choose the right size
Match the water heater to your household size for enough hot water.
4
Find a qualified installer
Work with an experienced contractor who knows heat pump systems.
5
Prepare for installation
Heat pumps may require additional electrical capacity, but a service upgrade from PG&E can often be avoided by making smart choices. Common Challenges: Electric Upgrades Content
6
Schedule the upgrade
Coordinate installation and enjoy lower energy bills.
What to Consider
Things to think about before you upgrade
- Space needs: HPWHs require more room to operate efficiently.
- Noise level: Heat pump systems hum softly during operation. Consider this when choosing placement.
- Electrical panel: Some homes may need a panel upgrade to accommodate the new system but generally won’t need to increase their electrical service with PG&E. Save time and money by asking the right questions. Here are some questions to ask your contractor.
- Maintenance: Regular maintenance keeps your system running smoothly and efficiently.

Other Service Options
Explore our other home upgrade services and support
Ready to start upgrading your home? Check out the ways we can support you on your home electrification journey.
Personalized Support
Full-Service Installation
Do-It-Yourself Upgrades

Support
Have more questions about what upgrade service is right for you?
As your community-choice, not-for-profit source of clean, renewable electricity, our goal is to empower and support our community. Reach out any time with questions and we’ll be happy to help.