Earlier versions of this page listed PG&E rebate amounts for heat pumps, air conditioners, furnaces and thermostats. As of 24 September 2026, PG&E's own residential rebates page lists none of those. If a quote or a website promises you a PG&E HVAC rebate, ask for the program name and a link to it on pge.com.
That does not mean PG&E customers have no options. The money moved, mostly to the local electricity providers that buy power for most Bay Area cities while PG&E delivers it. This page explains what PG&E offers now, how to find your local provider, and what we recommend before any HVAC upgrade. It is part of our Winter Heating Help Center.
What PG&E lists for homes today
PG&E's residential rebates and incentives page lists three rebates: a rebate for adding a portable backup power system (generator or battery), a rebate on a pre-owned electric vehicle, and an EV charging rebate for income-eligible households (PG&E). None of them applies to heating or cooling equipment.
Where the heat pump money is now
Look at the electric generation section of your PG&E bill. If it names a provider such as Silicon Valley Clean Energy, San José Clean Energy, WestLight Energy, MCE or Ava Community Energy, that provider is where to look for heat pump rebates. Palo Alto and Santa Clara residents are served by their city utilities instead.
| 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 available to Bay Area PG&E-territory customers. Figures are the programs' own, read 24 September 2026.
Most of these programs pay only when a heat pump replaces gas heating, and most need approval before installation. Bay Area heat pump rebates: what is still available covers the application order in more detail.
PG&E programs that still matter to HVAC owners
Bill discounts
CARE gives income-qualified households a discount on both gas and electricity. FERA is an electric-only discount for households just above the CARE limits. Medical Baseline gives customers who rely on certain medical equipment, or have qualifying conditions, extra energy at the lowest price. These help far more with a winter heating bill than an equipment rebate would.
Gas safety services
PG&E offers free gas appliance safety checks and pilot relights for residential gas customers. See our pilot light and ignition guide for how to book them and when to call a technician instead.
Closed programs you may still see quoted
| 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). |
Before you upgrade
- Confirm your electricity provider and read its current rebate rules before collecting quotes.
- If the program needs pre-approval, get it in writing before any work starts.
- Make sure the job includes a permit. Rebate programs and the 2025 California Energy Code both expect one, and heat pump changeouts may need duct and refrigerant checks by a certified rater.
- Ask every contractor to show the incentive on the quote as a separate line, with the program named.
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
Does PG&E still offer a heat pump rebate?
Not on its residential rebates page as of 24 September 2026 (PG&E). Heat pump rebates now come mainly from local electricity providers such as Silicon Valley Clean Energy, San José Clean Energy and WestLight.
Does PG&E offer a smart thermostat rebate?
PG&E's residential rebates page does not currently list one. Check your local electricity provider, which may offer one.
How do I know which electricity provider I have?
It is named in the electric generation section of your PG&E bill. Palo Alto and Santa Clara residents have city utilities instead.
What PG&E programs help with high heating bills?
CARE (gas and electric discount), FERA (electric discount) and Medical Baseline. Links and details are in our guide to lowering winter heating bills.
Can I combine a local heat pump rebate with the federal tax credit?
Not for a 2026 installation. The federal 25C credit ended for equipment placed in service after 31 December 2025 (IRS).
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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