Water heating

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 and gas prices can fluctuate unpredictably. Heat pump water heaters are clean, safe, and all-electric. Peninsula Clean Energy offers up to $3,000 in customer rebates to switch to a heat pump water heater. Install by March 31, 2023, and get an additional $500 bonus, for a total of $3,500.

Where additional rebates are available, they can be added to Peninsula Clean Energy’s incentives. For example:

  • The BayREN Home+ program offers rebates in San Mateo County (installation must be with a BayREN participating contractor)
  • Redwood City offers $500. Learn more and apply here

Get a 0% interest loan up to $10,000 with no credit check and no money down for heat pump water heaters through our Zero Percent Loan Program.

installed heat pump water heater
Installed heat pump water heater
  • Don’t wait until your water heater fails catastrophically: if your water heater is at least 10 years old or you are planning a remodel consider a HPWH
  • A qualified contractor can evaluate your home and help you understand factors that may affect the ease and cost of installation, including HPWH selection and location
  • Rebates not only help offset costs of HPWHs but are also available for electrical panel  upgrades, if needed
  • HPWHs typically need more space when compared to gas water heaters and are best suited for installation in a garage, but may be installed in a closet if it is properly ventilated
  • HPWH noise varies depending upon the model and may be mitigated through choice of location and/or sound-proofing
  • Start today – demand for HPWHs is growing and contractor schedules and order times for popular models require advanced planning

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: At least 3x more efficient than methane gas water heaters  
  • Safe: Heat pumps are all-electric – no gas combustion emissions or hazards 
  • Clean: Heat pumps powered by Peninsula Clean Energy is 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 water heater
Replace methane gas water heater$3,000$1,000$4,000
Replace electric resistance water heater$500$1,000$1,500
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 the BayREN 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 water heater before October 1, 2022. Am I eligible for the Peninsula Clean Energy rebate? 

If you installed a HPWH between January 1, 2022 and September 30, 2022, you are eligible for a $1,000 rebate (our previous rebate amount). Only installations completed on or after October 1, 2022 are eligible for our current rebate of $3,000.  

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 want to install two heat pump water heaters in my home. Can I get a rebate for each? 

Yes, two heat pump water heater rebates are eligible per electric account.  

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 water heater installation or a heat pump HVAC 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 HVAC system. Am I eligible for Peninsula Clean Energy rebates? 

Yes, Peninsula Clean Energy also offers heat pump HVAC rebates of $3,500. More details here. 

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

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

If you live in San Mateo County and have questions about heat pump water heaters, 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 water heaters, please contact programs@peninsulacleanenergy.com.