Heat Pump Water Heater Rebate Rules

Eligibility

  • This rebate is available only to current Silicon Valley Power (SVP) residential customers. Landlords may participate if their tenant is an eligible SVP residential customer.
  • Submit the rebate application within 60 days of the building permit issuance date or purchase date.
  • Must be installed and operating in an existing residence receiving electricity from SVP.
  • New construction is not eligible.
  • To qualify for income qualified bonus rebate(s), Silicon Valley Power residential customer must be enrolled in the Financial Rate Assistance Program and/or Low Income Home Energy Assistance Program prior to date of purchase. Income verification must have been provided within the prior 12 months.
  • One (1) rebate per Silicon Valley Power utility service address per measure every ten (10) years.
  • Silicon Valley Power reserves the right to verify both the new appliance sale and installation before a rebate is issued. Approval is at the sole discretion of Silicon Valley Power.

Payment

  • Gas-to-Electric Replacement:
    • Rebate amount is up to $5,500.
    • Income-qualified customers may be eligible for an additional bonus rebate of up to $1,000.
  • Electric-to-Electric Replacement:
    • Rebate amount is up to $500.
    • Income-qualified customers may be eligible for an additional bonus rebate of up to $500.
  • The rebate amount cannot exceed the purchase price of the water heater plus installation and permit fees, excluding taxes, shipping costs, discounts, and additional incentives received by Customer (i.e., other rebates or grants).
  • Rebates are valid for purchases made with United States currency only (i.e., no store credit or credit card points)

Heat Pump Water Heater Requirements

  • Uniform Energy Factor (UEF) ≥ 3.30 (All tank sizes)
  • ENERGY STAR® certified
  • Must replace an existing non-electric system or electric resistance water heater
  • Instantaneous and tankless water heaters do not qualify
  • Existing gas water heater should be removed
  • Cannot be paired with water heater prewire add-on rebate
  • Proof of building permit issuance

Building Permit Requirements

  • Proof of building permit issuance to receive a rebate
  • All electrical work must be in accordance with local codes, permitting, and inspection requirements. Please call (408) 615-2420 or visit the Permit Center website for more information.

Required Documents

  • Rebate application 
  • Sales receipt must include purchase date, purchase amount, and brand and model number
  • Sales receipt for materials, if applicable, must identify the item used for the installation and include purchase date and purchase amount
  • Sales invoice from contractor, if applicable, must include invoice date, contractor’s license number, name and address of contractor, and price paid for installation
  • A "before" photo of the old appliance in place and an "after" photo showing the installed appliance.
  • Proof of building permit issuance

Qualifying measures and rebate values are subject to change. Visit the Residential Rebates page, call (408) 244- SAVE (7283), or email SVPResidential@SiliconValleyPower.com to verify before purchase or installation.

Last Updated:
07-07-2026