All-electric homes

Heat pump water heater (HPWH)

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. Peninsula Clean Energy is partnering with the Bay Area wide BayREN Home+ program to offer additional rebates for installing heat pump water heaters for residents in its member communities.

Start today: Demand for heat pump water heater installations is growing. Contractor schedules and order times for some popular models require advanced planning.

Residential methane gas use, hot water 59% /space heat 32%, Cooking 5%, Dryer 2%, Misc 2% (California Residential Appliance Saturation Study 2019)
Home methane gas use (California Residential Appliance Saturation Study 2019)

 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 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


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 1Peninsula Clean EnergyBayREN Total
Replace methane gas water heater (any size)$1,000$1,000$2,000
Replace electric resistance water heater (>60 gals size)$500$1,000$1,500
Additional bonus incentives
CARE/FERA customers3$1,000$0$1,000
Main panel upgrade to 100 amps$1,500$0$1,500
Main panel upgrade up to 200 amps $750$0$750
Subpanel upgrade$750$0$750

1 Heat pumps must have UEF of 3.1 or greater
2 Combined rebates are not to exceed project costs
3 California Alternative Rates for Energy Program / Family Electric Rate Assistance Program


  • Must be a resident of San Mateo County (City of Los Banos residents, see here)
  • All installations must be completed on or after Jan. 1, 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.

Get even more rebates

Check to see if incentives are offered by manufacturers, cities, local agencies or other organizations, such as the rebates offered by Redwood City. These do not disqualify you or affect your eligibility for our programs. In fact, you can layer these on top of incentives from Peninsula Clean Energy or BayREN.

Redwood City offers $500 to install HPWH
Until 6/30/2022, Redwood City is offering $500 to its residents who replace a gas water heater with an electric heat pump water heater. Apply here.

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.

View a list of recent HPWH project data, including costs.

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

San Mateo County ContractorsContactTelephoneEmail
Alternative HVAC Solutions Inc.Mike Rebholtz(650)
Awesome Plumbing, IncSung Kwok(650)
Caccia PlumbingAnthony Caccia & Jennifer Collins (650) 342
Commando PlumbingAbraham Flores (650)
Dan B. Underhill Co.Dan Underhill(650)
EmeraldECOEric Sweet(415)
Shoreway PlumbingOsmar Flores(650)
Other Contractors Serving San Mateo CountyContactTelephoneEmail
Affordable Water Heaters & PlumbingPreston Stuckey(341)
Air Care Heating and Cooling, INCJoey Mangano(408)
Air and Plumbing SystemsMark Fridlyand(408) 733-2000
AIS Heating And Air ConditioningVeronica Rodriguez(510)
Attic Bright & HVAC ServicesAriel Baleli(925)
Bellows Plumbing, Heating & AirMain Office(831)
Bold Construction GroupGreg Ramirez(510)
Building EfficiencyAlex Ballete(415)
Cabrillo Plumbing Heating and AirRobert Burkett(650)
Cobalt ConstructionDave Loperena (408) 500-6396
DG Heating & Air ConditioningMichael D'Angelo(408)
DMG EnterprisesDavid Guan(415) -
Fuse HVAC & RepairStanislav Pakarin(408)
Green Energy Associates LLCBrandi McDougall(877)
Hussey Bros., Inc.Kyle Allison(408)
Larratt Brothers Plumbing, Inc.Sasha Arteche(650)
Phil Barnett Plumbing, IncJohn Lombardi(408)
Residential Heating and Air Conditioning, Inc. Cathy Haire(408)
RF Contractors dba Royal FloorsMario Wagner(510)
Starburst Construction Inc Cindy Carey(408)
Sunwork Renewable Energy ProjectsReuben Veek(650)
Synergy CompaniesMatt Urive & Ray Potter(888) &
Valley Heating, Cooling And ElectricalFront Office(408)

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.