Zero percent loans

Up to $10,000, zero interest, no money down, no credit check required

Zero percent loans help customers install electric water heaters, heating and A/C,  and energy efficiency upgrades that reduce carbon emissions and energy use in the home. The loans are zero percent (0%) interest with no money-down for a term of up to 10 years. The payments are conveniently included on your monthly electric bill.

Qualifying upgrades must be from the eligible list and must include either a heat pump water heater or a heat pump for space heating and air conditioning.

  1. Get bids and select your contractor
    Select from the “Upgrades and rebate details” table, and then from “Approved contractors” table (both are below). We recommend that you contact more than one contractor and compare.
  2. Apply for zero percent interest loan
    Once you select an approved contractor, apply here for your loan with your contractor bid. We will process your application within five (5) business days.
  3. Sign the Zero Percent Loan Agreement
    Once your application is approved, we will email you the loan agreement. You will have 30 days to sign and return the agreement.
  4. Complete upgrades
    After you’ve signed the agreement, your approved contractor can complete your upgrades.
  5. Verify installation
    Once the upgrades are installed, your contractor will prepare forms for you to sign. The contractor will submit those forms for you. We will email you the final loan terms and send payment to your contractor.
  6. Make monthly payments
    The loan will be added to your account and you will begin repaying your loan, at a term of between 2-10 years, directly on your electric bill.

You can check your eligibility by completing this form. Completing the form is optional and not required to secure a loan. 

Customer eligibility

  • Be a Peninsula Clean Energy customer on a residential rate (over 95% of residents in San Mateo County and Los Banos are customers)
  • Own the residence where the upgrades are installed
  • Have a zero-dollar ($0.00) past-due balance on your last three PG&E billing statements
  • Install eligible upgrades with an approved contractor
  • Have no more than one other active zero percent loan with Peninsula Clean Energy

Eligible upgrades

  • Heat pump water heater
  • Heat pump for HVAC (heating, ventilation and air conditioning)
  • Electrical panel upgrades
  • Energy efficiency and weatherization work (e.g. insulation, air sealing)

To qualify for a zero percent loan, a project must include either a heat pump water heater or heat pump for space heating and air conditioning. Gas-powered appliances are not eligible.

See “Upgrades and rebate details” (below). 

  1. Maximum amount you can borrow: $10,000 per household 
  2. APR: 0% 
  3. Fees: None 
  4. Credit requirements: None 
  5. Repayment terms: 2 to 10 years. You choose! 
  6. Restrictions: You must be the owner of the property and have lawful authority to initiate and install the equipment 

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
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
Energy efficiency and weatherization (BayREN Home+)4
Smart Thermostat (ENERGY STAR qualified list for Smart Communicating Thermostat)$0$150$150
Duct sealing 10% total leakage max. (ducts or furnace/air handler/FAU located in garage do NOT qualify)$0$200$200
Duct Replacement 5% total leakage max.$0$800$800
Attic insulation min. R-44 (includes attic air sealing)$0$0.75/sf (not to exceed $1,000)Up to $1,000
Wall insulation min. R-13 (2×4 framing) or R-19 (2×6 framing)$0$0.70/sf (not to exceed $1,000)Up to $1,000
BONUS: Combine attic and/or wall insulation with heat pump HVAC (must be completed simultaneously)$0$500$500
BONUS: Combine attic with exterior wall insulation (must be completed simultaneously)$0$500$500
BONUS: Downsize heating and/or cooling system (requires a minimum 12 kBTU or 1 ton input reduction)$0$100$100
BONUS: Building air sealing min. 30% total leakage reduction when combined with another measure, otherwise requires blower door test-in and test-out to qualify as a standalone building shell measure)$0$150$150
BONUS: Combustion Appliance Safety (CAS) test-out for all measures (not available as a standalone rebate; limit one per service address)$0$150$150
  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. You must work with a BayREN Participating Contractor and meet the BayREN eligibility requirements to get their rebate(s). 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.
  4. To be eligible for a zero percent loan, project must include at least one water or space heating measure, i.e. a heat pump water heater (HPWH) or a heat pump HVAC (HP HVAC) upgrade. Electrical work and energy efficiency/weatherization measures are eligible only if they are paired with a HPWH or HP HVAC.

Customers must work with an approved contractor to be eligible for zero percent loans.  If you have a preferred contractor that is not on this list, please encourage them to apply by email to

San Mateo ContractorsTelephoneEmail
Air & Plumbing
Alternative HVAC
Barnett Plumbing and Water
DG Heating & Air
Element Home
Galaxy HVAC
Residential Heating and Air
Pacific Air
Valley Heating, Cooling, and Air
Villquin Air
Los Banos ContractorsTelephoneEmail
Cen-Cal Air(209)

Yes. Most of the eligible upgrades for the Zero Percent Loan Program are also eligible for a rebate from Peninsula Clean Energy and/or (in San Mateo County only) the BayREN Home+ program. The rebates reduce the total project cost and therefore the total amount borrowed. The rebates will be provided directly to your contractor, along with the amount borrowed, so that you do not have to put any money down for this amount.

Yes, the loan applies to the installed cost of your project, including both equipment and labor.

No. In order to receive a loan from Peninsula Clean Energy, the contractor you use must be a Zero Percent Loan Program approved contractor (see list above). If your preferred contractor is not already an approved contractor, please encourage them to sign up by contacting us at

Projects of any value are allowed, however you can only finance up to $10,000 of eligible upgrades. As an example, if your project costs $20,000 and you receive $4,000 in rebates, Peninsula Clean Energy will finance $10,000, and thus you will need to cover the remaining $6,000 up front with your contractor.

You can apply for up to two loans for a combined total of no more than$10,000 per electric account. As an example, you can have one $10,000 loan for one project or two $5,000 loans from separate projects. The combined borrowed amount cannot exceed $10,000.

No. Residents must apply, be approved for the program, and sign the Zero Percent Loan Agreement prior to completing the upgrades to qualify for financing.  

It depends. The loanee must be the PG&E account holder. If you own the home and are the PG&E account holder (i.e. the bill is under your name), then yes, you qualify. If the PG&E account holder is your tenant, then you do not qualify.  

Your loan payments will be added to your monthly PG&E bill but will not otherwise affect your bill or electricity service.

Peninsula Clean Energy’s on-bill loan payment policies are the same as for Peninsula Clean Energy’s electric generation payments which can be found under our Delinquent Accounts and Bad Debt Collections Policy. Failure to make payments after 150 days may result in the debt being sent to a collections agency.

Neither applying for a loan nor having an active on-bill loan affects your credit report. However, per Peninsula Clean Energy’s Delinquent Accounts and Bad Debt Collections Policy, unpaid accounts may be referred to a collection agent, in which case your credit report would be impacted. 

You can repay the loan over 2 to 10 years – you chose when you fill out your financing application. You can change the loan term before the installation is complete, however, once the installation is completed, this cannot be changed.  

You may pre-pay the loan in full but we cannot process any partial pre-payments. Full loan pre-payments must be sent directly to Peninsula Clean Energy via check. You cannot make a pre-payment by overpaying your PG&E bill. Please contact us at to arrange details.

You will need to pay the balance of the loan in full. Any closure of the PG&E account will require payment of the balance in full. Send this payment directly to Peninsula Clean Energy via check, it cannot be done through payment of your PG&E bill. Please contact us at to arrange details.  

No, the loan is associated with the PG&E account holder and PG&E account number of the property at the time the upgrades were completed. It cannot be transferred.  

The Bay Area Regional Energy Network (BayREN) is a regional program for the Bay Area’s nine counties focusing on energy, water and greenhouse gas reduction. BayREN’s Home+ program offers rebates for energy efficiency and electrification upgrades.  

In San Mateo County, Peninsula Clean Energy’s heat pump water heater rebates and heat pump HVAC rebates are integrated with the BayREN Home+ program. This allows customers who work with BayREN participating contractors to apply for rebates from both agencies through a single application process (BayREN’s). The BayREN program administrator reviews the application and documents and sends them directly to Peninsula Clean Energy, so that you or your contractor don’t have to submit them twice.  

If you are not working with a BayREN participating contractor for your project, BayREN does not have a role in your project. All installation documents are submitted directly to Peninsula Clean Energy in this case.  

Approved contractors are required to execute a program participation agreement with Peninsula Clean Energy. Contractors are also required to attend a Zero Percent Loan Program online training upon agreement execution. If your preferred contractor is not already an approved contractor, please encourage them to sign up by contacting us at 

Many BayREN participating contractors are approved contractors for the Zero Percent Loan Program but not all of them are. Additionally, not all approved contractors are BayREN participating contractors. To be approved for Zero Percent Loan Program, contractors are required to execute a program participation agreement with Peninsula Clean Energy. 

If you have further questions, please email with the subject line “Zero Percent Finance question”.

If you have questions specific to the Zero Percent Loan program, please contact