CPAU customers, California · Rebate
Heat pump water heater rebate (City of Palo Alto Utilities)
Run by City of Palo Alto Utilities (CPAU)
Palo Alto homeowners with CPAU service get $3,500 for replacing a gas water heater with a NEEA Tier 3 or higher heat pump water heater, or $500 when replacing an electric resistance one. An extra $500 applies to switches between July 1 and October 31, 2026.
Amounts
How much you get
$3,500 to replace a gas water heater, $500 to replace an electric resistance water heater. The amount depends on which of these fits your install.
| What you install | You get |
|---|---|
| Replacing a gas water heater | $3,500 |
| Replacing an electric resistance water heater | $500 |
| July 1 - October 31, 2026Limited-time bonus | $500 |
Eligibility
Do I qualify?
You need to meet all 3 of these.
City of Palo Alto Utilities residential customer with active electric and gas service.
The property owner must be the applicant (a rental property qualifies, but the owner applies). Renters can ask their landlord to apply.
What to doIf you rent, ask your landlord to apply through the Rebate Hub.
Must replace an existing gas water heater or electric resistance water heater with a NEEA Qualified Products List Tier 3 or higher heat pump water heater. One rebate per utility account.
Equipment
What equipment counts
The program sets these minimums for water heaters.
- Heat pump water heaters
NEEA Qualified Products List Tier 3 or higher.
Applying
How to apply
You apply online. Final application within 90 days after final inspection; reservation required before installation. Get approved before you buy anything.
- Create a project in the Rebate Hub.
In the CPAU Rebate Hub (Rock Rabbit), create a project, pick the rebate and any add-on rebates. A CPAU Instant Rebate Partner contractor can take the rebate off the price and apply for you.
- Submit a reservation before installing.
Include photos of the existing gas appliance and its nameplate. Funds are held for 120 days once approved.
- Install and pass final inspection.
- Submit final documents within 90 days of final inspection.
Itemized contractor invoice, photos of the new equipment and nameplate, and proof of final inspection.
- Receive a check.
Mailed within about 6 weeks of approval.
Forms and instructions, including for applying by mailRebate Hub - City of Palo Alto Utilities · Rebate eligibility criteria and required documentation - CPAU Rebate Hub · Electrify My Home - City of Palo Alto Utilities
Questions about applying(650) 713-3411 or switch@paloalto.gov
Stacking
Use it with
You can get these too.
CPAU customers, California
Electrification add-on rebates: panel, wiring, insulation, permits (City of Palo Alto Utilities)
Up to $2,000 back
With a CPAU heat pump or induction rebate, Palo Alto homeowners can add up to $1,000 ($2,000 if income-eligible) for a panel upgrade, $1,000 for attic insulation, $500-$1,000 per new circuit or device, and a permit fee rebate of up to $662.
Checked Oct 27, 2026
CPAU customers, California
Heat pump HVAC rebate (City of Palo Alto Utilities)
Up to $5,000 back
Palo Alto homeowners with CPAU electric and gas service get up to $2,500 ($5,000 for income-eligible residents) for replacing a gas, propane, oil or wood heater with an all-electric heat pump. Reserve the rebate before installing.
Checked Oct 27, 2026
CPAU customers, California
Gas meter removal incentive (City of Palo Alto Utilities)
Up to $2,500 back
Palo Alto homeowners who go fully electric and have CPAU remove their gas meter can get a $2,500 incentive. The City treats it as taxable income and needs a W-9.
Checked Oct 27, 2026
Your address
Next steps
Check that it covers your address. This program has to approve you before you buy anything, so start with the program, not a contractor quote.
Is it available at your address?
Before anything else
Apply on the program’s site and wait for approval before you buy.
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
FAQ
Questions
How much does Heat pump water heater rebate (City of Palo Alto Utilities) pay?
$500 to $3,500, depending on what you install. The table under How much you get lists each amount.
Do I need to be a CPAU customer?
Yes. It’s only for homes in CPAU customers, California. See Do I qualify for the details.
Do renters qualify?
The property owner must be the applicant (a rental property qualifies, but the owner applies). Renters can ask their landlord to apply. If you rent, ask your landlord to apply through the Rebate Hub.
Do I need approval before I buy?
Yes. Apply before you buy or install anything; purchases made first don’t qualify.
What’s the deadline?
No fixed deadline. Apply any time while it’s open.
Can I combine it with other rebates?
Yes, with Electrification add-on rebates: panel, wiring, insulation, permits (City of Palo Alto Utilities), Heat pump HVAC rebate (City of Palo Alto Utilities) and Gas meter removal incentive (City of Palo Alto Utilities). See Use it with.
Is it still available?
Yes. It was open when we last checked, on October 27, 2026.
Plain words
Words used on this page
References
Sources
This page is built from these official pages, run by the program itself.
- Rebate Hub - City of Palo Alto Utilities
- Rebate eligibility criteria and required documentation - CPAU Rebate Hub
- Electrify My Home - City of Palo Alto Utilities
When one of these pages changes, we re-check this page against it.
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