Rebates
Palo Alto Heat Pump Water Heater Rebate
The City of Palo Alto Utilities is offering a rebate of 55% of project costs, up to $3,500, for residents who install an efficient, electric heat pump water heater.
Please apply for this rebate if you will be selecting your own contractor. If you are interested in having a City contractor install your heat pump water heater, please choose our "Full Service Solution" at cityofpaloalto.org/upgradeyourwaterheater.
How to Qualify
- Be a residential customer who receives utility service from City of Palo Alto Utilities (i.e., must pay residential rates for electric and/or gas utility services).
- Submit a completed online application and be approved prior to purchasing equipment and installing the heat pump water heater.
- Rebates are for replacing existing gas or electric resistance water heaters only. New construction projects are not eligible.
- The new HPWH must meet Product Tier 3 or higher tier from the Northwest Energy Efficiency Alliance (NEEA) Qualified Products List.
Rebate Amounts
- 55% of total project cost, up to $3,500, if you have an existing natural gas water heater and apply for this rebate on or after April 15, 2024.
- $500 if you have an existing electric water heater and have a final inspection permit dated on or after October 4, 2022.
Golden State
Heat pump water heaters Up to $900 instant rebate