Get pumped for a new Heat Pump Water Heater!


Silicon Valley Clean Energy (SVCE) is offering rebates to our single-family and multi-family household customers to switch from a natural gas water heater to an electric Heat Pump Water Heater. Income-qualified households will be eligible for additional incentives. Rebates are limited and will be available by reservation on a first-come, first-serve basis. There are 100 reservations available and check out our Reservation Tracker (pdf or excel) for an updated list of reservations. Only one rebate per household address.

Program Details

  • Replace existing natural gas water heater with modern and highly-efficient electric hybrid heat pump
  • Optional electric service panel upgrade to 200 amps
  • Data monitoring to help SVCE make specific recommendations to customers about the appropriate utility rate for them, as well as design grid-interactive, demand response initiatives to unlock even more savings

Program Rebates:

 SVCE will award rebates up to the dollar amounts described below. Rebates are not to exceed project costs.

Chart outlining program rebates - for assistance call (408) 721-531

This program is funded in part by a grant from the Bay Area Air Quality Management District.

Equipment Specifications:

Electric Heat Pump Water Heater

Units must have a minimum Uniform Energy Factor (UEF) of 2.87 or greater and be Energy Star® Certified. SVCE has seen numerous units available with a much greater efficiency (some as high as 3.75) – the greater the efficiency, the greater the savings potential.

Data Monitor

Once you have a reservation confirmation from us, we will provide you with information on how to purchase the home energy monitor directly from Sense so that it is registered automatically to our program.

Optional Additional Rebate Specifications:

Smart Performance Package 

In order to qualify for this additional rebate, select manufacturers and models were chosen for their capability to connect their usage data to continue to drive cost savings with time-of-use electricity rates. If you select the Smart Performance Package, SVCE will provide an additional $1,500 incentive as shown above.   Below you will find the eligible models and required equipment for this option.  The above Data Monitor is still required.

Chart outlining qualifying heat pump water heater models - for assistance call (408) 721-531

Either of the above two models + Thermostatic Mixing Valve

Service Panel Upgrade 

For customers interested in upgrading their existing service panel to 200 amps (200A), SVCE will provide an additional $2,500 incentive as shown above.  If your existing service panel is smaller than 200A, the heat pump water heater breaker may still fit.  However, at some point, the next investment you make (solar, EV, induction range, etc.) may exceed the capability of your smaller service panel.  If you are below 200A and even thinking of continuing on the FutureFit path to a cleaner future, feel free to take advantage of this offer.

CARE/FERA Eligibility

The first ten (10) existing CARE or FERA customers with SVCE qualify for the additional $1,500 rebate as shown above. We will update this figure if additional funding becomes available. Of course, all CARE or FERA customers are eligible to participate in this program even once those ten enhanced rebate slots are committed.

How the FutureFit Heat Pump Water Heater Program Works

1. Reserve a rebate. Submit a completed “Reservation Request” packet. SVCE approves application, reserves rebate for up to 90 days, and sends email confirming reservation.

2. Start the Project. Apply for a building permit, then install the necessary equipment.

3. Submit Rebate Request. After the project is installed and inspected by your local jurisdiction, submit a “Payment Request” packet.

4. Receive the rebate. Upon post-installation review, SVCE sends email notification. Rebate is paid and mailed to the customer or contractor, or split between them.

Steps to Participate

Step 1


Participants will first complete the Reservation Request:

  • Complete Reservation Request form. SVCE will review the Reservation Request packet and send the participant a Reservation Confirmation (valid for 90 days*) along with any relevant recommendations.

If you need special assistance or accommodations in viewing and completing this form, please contact SVCE at (833) 243-4235.

Step 2


Apply for building permit.

Install necessary equipment:

  • Eligible Heat Pump Water Heater
  • Data monitor
  • Thermostatic mixing valve (“Smart Performance Package” only)
  • Take a photo of the newly installed Heat Pump Water Heater
  • Take a photo, if applicable, of the new 200A service panel and/or thermostatic mixing valve

While SVCE does not maintain a preferred contractor list, you may find contractors who participated in other regional HPWH programs.

Bay Area Regional Energy Network (BayREN) Heat Pump Water Heater Contractor List

City of Palo Alto Heat Pump Water Heater Contractor List

Step 3


Complete the Rebate Request packet which includes:

  • Rebate Request form
  • Signed W-9 form
  • Signed Permit Inspection documentation
  • Copy of installation contract and receipts
  • Photo of the new Heat Pump Water Heater
  • Photo, if applicable, of the new 200A service panel and/or thermostatic mixing valve
Step 4


Upon post-installation review, SVCE will send an email notification. The total rebate amount may be paid to the customer or contractor, or split between them as indicated on the Rebate Request document.

*Reservation may be extended by demonstrating significant progress, such as having a valid building permit. Contact SVCE about this.

An Essential Element in the ‘FutureFit’ Home

FutureFit Home Graphic with intelligent cooling, solar+battery storage, induction cooking, heat pump heating and cooling, electric dryer, heat pump water heater and EV charger

An all-electric FutureFit home is more efficient, comfortable and safe. Appliances run exclusively on clean electricity from sources such as solar, wind and hydropower – rather than fossil fuels that harm indoor air quality and pollute the environment. At the core of a FutureFit home is an electric Heat Pump Water Heater.

Most existing homes in the San Francisco Bay Area have water heaters that run on natural gas. Gas water heaters are typically a home’s single biggest source of emissions that are damaging to air quality and the environment.

What is so special about a Heat Pump Water Heater?

Typical water heaters burn fossil fuels to warm water – but that is old news.  Heat Pump Water Heaters move heat from one place to another to warm water.  Why is that so cool (pun intended)?  By moving existing heat, Heat Pump Water Heaters use clean electricity and are highly efficient, instead of burning natural gas, which pollutes homes and the environment.

As a customer of Silicon Valley Clean Energy, your new Heat Pump Water Heater will provide hot water to your sinks, showers and washing machines using electricity from carbon-free sources. Overall, this technology saves energy, improves safety and adds comfort!

heat pump water heater in garage

Benefits of a Heat Pump Water Heater

Saves Energy

Heat Pump Water Heaters use less energy compared to natural gas water heaters. They are also designed to engage with additional energy and money saving options related to energy bills.

Improves Safety

Replacing water heaters that use natural gas with Heat Pump Water Heaters eliminates the potential for toxic pollutants such as carbon monoxide and nitrogen dioxide from being released in your home and the environment.

Adds Comfort

As heat pumps move warm air to warm water, it also releases cold air that can make surrounding spaces more comfortable on hot summer days. Multiple modes and functions meet your hot water needs, whenever you need it.


– Energy Star – energystar.gov/products/water_heaters/heat_pump_water_heaters

– California Air Resources Board – arb.ca.gov/research/indoor/combustf.htm 

– Contractors State License Board – cslb.ca.gov 

Terms and Conditions

  1. The launch date of this Program is June 28, 2019, and the application window will close on November 30, 2020.
  2. The project must be located within SVCE’s service territory.
  3. Only one (1) rebate is available per residence.
  4. Recipient acknowledges the existing natural gas water heater being replaced in this program is at least five (5) years old.
  5. The electric heat pump water heater installed in this program is new and has not been in operation prior to this installation.
  6. Recipients agree to keep the new heat pump water heater unit at the installed residence for a minimum of seven (7) years, unless the heat pump water heater unit no longer functions in its primary role as a water heater.
  7. Participant agrees to share heat pump water heater usage information with SVCE via the data monitoring device.
  8. Recipients agree to maintain a wireless internet connection for the data monitoring device.
  9. Applicant and all entities named in the Application will cooperate in good faith with SVCE or its authorized representative in performing evaluation, measurement and verification (EM&V) of the Program. Information accessed for EM&V may include, but is not limited to, onsite verification of project operation, program compliance, and project records. All information collected will be held confidentially and will be used by SVCE or its authorized representative for program analysis purposes only. Building Owner/Manager shall cooperate to provide access to the project at reasonable times, for a period of up to two (2) years from the date of receipt of an award under this Program.
  10. An award may be considered income and may be taxable. An Applicant selected as an awardee is responsible for determining whether a tax liability exists.
  11. SVCE makes no representations, express or implied, regarding the design, construction, reliability, performance, operation, maintenance, or use of any equipment, or installation discussed, selected, rejected, purchased, or otherwise considered by Applicant and/or Building Owner/Manager. Any decisions regarding the selection, design, purchase, installation, use, and operation of any equipment or consideration or selection of any contractor shall be at the sole discretion and are the sole responsibility of the Applicant and/or Building Owner/Manager.
  12. SVCE reserves the right to modify or terminate this Program, in whole or in part, at any time and for any reason without prior notice.
  13. These Terms and Conditions apply for all application packages submitted on or after June 28, 2019 and subsequent. If Applicant fails to comply with any of these Terms and Conditions, as determined by SVCE, Applicant agrees to repay the award in an amount determined by SVCE within 30 days of written notice by SVCE.
  14. SVCE may waive any of these Terms and Conditions, at its sole discretion.




Terms and conditions

Check out the Reservation Tracker to view the active reservations.