Heat pump rebates in the Bay Area now depend almost entirely on your address. The statewide and federal programs that used to do most of the work are closed, and what remains comes from the local electricity provider or city utility that serves your home. The amounts are still meaningful, but the rules are strict, and the most common way to lose a rebate is to install first and apply later.
Below is every program we could confirm on its own website on 24 September 2026, for the cities we serve. For how these systems perform in a Bay Area winter, see heat pumps in winter, part of our Winter Heating Help Center.
Open heat pump rebates, by provider
| Provider | Where | Heat pump HVAC offer |
| Silicon Valley Clean Energy | Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale, unincorporated Santa Clara County | $2,000 for a heat pump replacing a gas furnace; $3,000 income-qualified. Apply before installation. (source) |
| San José Clean Energy | San José | $1,500 for heat pump HVAC replacing gas equipment; $2,500 in designated Environmental Justice communities. Pre-apply and get approval before installation. (source) |
| City of Palo Alto Utilities | Palo Alto | Up to $2,500 for heat pump HVAC that replaces a gas or fossil-fuel heater; up to $5,000 for income-eligible residents. (source) |
| Silicon Valley Power | City of Santa Clara | Gas furnace replacement: $3,000 per ton, up to $10,000. Also a tune-up rebate of up to $75. Check that the heat pump program is open when you apply. (source) |
| WestLight Energy (formerly Peninsula Clean Energy) | San Mateo County, including Redwood City and Woodside | Heat pump HVAC upgrades: up to $2,500. (source) |
| MCE | Marin and much of Contra Costa County, including Walnut Creek, Danville and San Ramon | Up to $400 per 500 square feet of home; installation by a participating contractor. (source) |
| Ava Community Energy | Much of Alameda County | No Ava-branded heat pump HVAC rebate found; Ava points customers to its incentive finder. (source) |
Heat pump HVAC rebates from Bay Area electricity providers. Figures are the programs' own, read 24 September 2026.
South Bay
Most South Bay cities outside San José, Santa Clara and Palo Alto are served by Silicon Valley Clean Energy. Its rebate is $2,000 for a heat pump that replaces a gas furnace, or $3,000 for income-qualified households, and it tells customers to apply before the appliance is installed. San José residents use San José Clean Energy's EcoHome rebate, which requires pre-approval. Santa Clara (Silicon Valley Power) and Palo Alto (City of Palo Alto Utilities) run their own programs, and both pay more per home than most.
Peninsula
San Mateo County's provider renamed itself from Peninsula Clean Energy to WestLight Energy on 1 July 2026 (WestLight). Its heat pump HVAC upgrade offer is up to $2,500. Older articles and search results may still show a higher figure under the old name; use the program page.
East Bay and Tri-Valley
Walnut Creek, Danville and San Ramon are MCE communities (MCE); MCE pays up to $400 per 500 square feet and requires a participating contractor. Most Alameda County cities, including Fremont, Hayward, Dublin, Pleasanton and Livermore, are served by Ava Community Energy, which does not list its own heat pump HVAC rebate and points customers to its incentive finder instead.
What closed, and why older articles are wrong
| Program | Status in 2026 |
| Federal 25C tax credit (heat pumps, furnaces, AC) | Ended for equipment placed in service after 31 December 2025 (IRS). A system installed in 2025 or earlier is still claimed on that year's return. |
| TECH Clean California (single-family heat pump HVAC) | Fully reserved since 14 November 2025; not accepting new reservations (TECH Clean California). |
| HEEHRA (the state's federally funded home electrification rebates) | Single-family rebates fully reserved statewide; waitlist only (California Energy Commission). |
| California Energy-Smart Homes | 2026 incentive funding fully subscribed as of April 2026 (BayREN). |
| BayREN Home+ heat pump rebate | No longer available as of April 2024 (BayREN). |
| PG&E residential HVAC rebates | None listed. PG&E's residential rebates page currently lists a generator and battery rebate, a used EV rebate and an EV charging rebate, but no heat pump, AC, furnace or thermostat rebates (PG&E). |
Worked examples that stacked a federal credit, a TECH incentive, a PG&E rebate and a BayREN rebate on one installation were accurate in 2023 and 2024. None of those four is available for a new 2026 installation.
The order to do things in
- Confirm your provider from your PG&E bill, then read its current rebate page.
- Check the requirements: most want the heat pump to replace gas heating, and some require a participating contractor.
- Get quotes. Ask each contractor to name the rebate on the quote and to include the permit.
- Apply and wait for written approval where the program requires it.
- Install with a permit and keep the invoice, model numbers, photos of the removed gas equipment if requested, and the permit record.
- Submit the claim inside the program's deadline.
If your furnace is still working, this is the best argument for replacing it on your schedule rather than in an emergency. See Bay Area gas furnace rules and heat pumps for the rest of the decision.
Program details checked 24 September 2026. Funding, amounts and rules change, sometimes mid-year. Confirm the current terms on the program's own page, and get any pre-approval in writing, before you sign a contract.
Frequently Asked Questions
What is the biggest heat pump rebate in the Bay Area right now?
Of the programs we confirmed, Silicon Valley Power in Santa Clara lists the largest: $3,000 per ton, up to $10,000, for replacing a gas furnace (Silicon Valley Power). Palo Alto pays up to $5,000 for income-eligible residents. Check that each program is open when you apply.
Can I combine all the rebates on one installation?
You can generally only use the program that serves your address, and the statewide and federal programs that used to stack with it are closed for 2026 installations. Some local programs have add-ons, such as panel or insulation rebates, that combine with the heat pump rebate.
Do these rebates apply to ductless mini-splits?
Often, since a mini-split is a heat pump, but each program sets its own rules. Check the program page before choosing equipment.
I already installed my heat pump. Can I still apply?
For programs that require pre-approval, usually not. For programs with a post-installation deadline, apply as soon as possible. Read the program's rules first.
Is the BayREN heat pump rebate still available?
No. BayREN's Home+ heat pump rebate has been unavailable since April 2024 (BayREN).
Talk to a technician
Cool Aid Air Conditioning & Refrigeration has installed and repaired heating systems across the Bay Area since 1966. We will tell you which incentives apply at your address and quote the job against the programs that are actually open, with a 1-year parts and labor warranty on every job.
📞 Call 1-800-266-5243.
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