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Silicon Valley Power Rebates for Heat Pumps in Santa Clara (2026)

In the City of Santa Clara, Silicon Valley Power (SVP), the City's own utility, supplies your electricity instead of PG&E or Silicon Valley Clean Energy, so SVP's rebates apply. As of October 2026, SVP pays up to $10,000 for a heat pump replacing a gas furnace and $5,500 for a heat pump water heater replacing a gas one.

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What Silicon Valley Power Pays For

Amounts as of October 2026, from siliconvalleypower.com. SVP says qualifying measures and rebate values are subject to change.

  • Heat pump replacing a gas furnace

    $3,000 per ton, up to $10,000, for a heat pump that replaces a gas, propane, oil or wood furnace. See heat pump installation.

  • Heat pump replacing electric heat

    $1,000 per system when the heat pump replaces electric resistance heat.

  • Heat pump water heaters

    $5,500 for replacing a gas water heater, $500 for replacing an electric one. See heat pump water heaters.

  • Smart electric panel

    $4,000 for an approved smart panel (KOBEN Genius, Lumin Smart or SPAN), 100 to 200 amps, installed by a C-10 electrician.

  • Panel and circuit add-ons

    $1,500 for a main panel upgrade and $500 per new circuit (up to $2,000), added to another SVP electrification rebate.

  • Income-qualified bonus

    Extra money for households enrolled in SVP's FRAP or LIHEAP before the purchase date: up to $1,000 more on a heat pump or a gas-to-heat-pump water heater.

Will You Qualify?

SVP's main conditions, as of October 2026.

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  • You live in the City of Santa Clara

    The rebates are for SVP residential customers who are Santa Clara residents. Landlords can take part when the tenant is the SVP customer.

  • You're replacing existing equipment

    A gas or electric furnace or water heater in an existing home. New construction isn't eligible.

  • The equipment meets SVP's specs

    Heat pumps: SEER2 16 and HSPF2 8.0 or better, all-electric (dual-fuel isn't eligible). Water heaters: ENERGY STAR, UEF 3.30 or better, no tankless.

  • A licensed contractor installs it, with a permit

    Do-it-yourself heat pump installs don't qualify, and SVP asks for the permit.

  • You apply within 60 days

    Counted from the permit final for a heat pump, or from permit issuance or purchase for a water heater.

  • No rebate for the same measure in 10 years

    SVP pays one rebate per service address per measure every 10 years.

Silicon Valley Power Rebates at a Glance (October 2026)

Amounts as of October 2026, from SVP’s residential rebates page. The income-qualified column is extra money on top of the standard rebate, for households enrolled in SVP’s Financial Rate Assistance Program (FRAP) and/or LIHEAP before the purchase date.

Measure Standard Income-qualified Limits
Heat pump replacing a gas, propane, oil or wood furnace $3,000 per ton, up to $10,000 +$500 FRAP, +$500 LIHEAP (up to $1,000) SEER2 16 and HSPF2 8.0 or better; no dual-fuel
Heat pump replacing electric resistance heat $1,000 per system +$500 FRAP, +$500 LIHEAP Same specs
Heat pump water heater replacing gas $5,500 +$500 FRAP, +$500 LIHEAP (up to $1,000) ENERGY STAR, UEF 3.30 or better; no tankless
Heat pump water heater replacing electric $500 +$250 FRAP, +$250 LIHEAP (up to $500) Same specs
Smart electric panel (100–200 A) $4,000 $1,000–$2,000 more, by income level KOBEN Genius, Lumin Smart or SPAN; C-10 electrician
Main service panel upgrade (add-on) $1,500 +$500 FRAP, +$500 LIHEAP Existing panel under 200 A; with another SVP electrification rebate
New circuits (add-on) $500 per circuit, up to $2,000 Check with SVP Up to 4 circuits
HVAC tune-up $75 — Once every 12 months

Every measure is limited to one rebate per service address every 10 years.

Why Santa Clara Has Its Own Rebates

The City of Santa Clara owns its electric utility, Silicon Valley Power. Homes in the city buy their electricity from SVP rather than from PG&E, and they aren’t part of Silicon Valley Clean Energy or San José Clean Energy. Your gas still comes from PG&E. Because SVP is the electric utility, its rebates are the ones that pay Santa Clara residents to switch from gas to electric heat and hot water.

The Rules That Trip People Up

  • The 60-day window. SVP doesn’t ask you to apply first, but it does set a deadline after the work. For a heat pump, apply within 60 days of the permit final. For a heat pump water heater, SVP counts the 60 days from permit issuance or the purchase date, so that clock can start before the job is finished.
  • A licensed contractor and a permit. Do-it-yourself heat pump installs aren’t eligible. The invoice must show the contractor’s license number, and SVP asks for proof of the permit.
  • Photos of the old equipment. For a heat pump, SVP wants before and after photos and a photo of the old furnace’s nameplate. Take them before anything is removed.
  • Dual-fuel doesn’t count. A heat pump with a gas furnace as backup isn’t eligible; the system has to be all-electric. You don’t need an existing air conditioner.
  • Income bonus timing. FRAP or LIHEAP enrollment has to be in place before the purchase date, with income verified in the prior 12 months.
  • No thermostat or AC-only rebate. SVP lists no smart thermostat rebate and none for a standalone air conditioner.

Stacking With Other Programs

SVP’s rebate can’t be more than your purchase, installation and permit cost after any other rebates or grants, so other incentives reduce how much SVP can pay. In practice there’s little else to stack in 2026: the federal 25C tax credit ended for installs after December 31, 2025, and statewide TECH Clean California and HEEHRA single-family funds are fully reserved. California Energy-Smart Homes is limited to PG&E, SCE and SDG&E electric territory and has had a waitlist since April 20, 2026. If the rebate leaves a gap, ask about our 0% financing for 12 months.

Gas Water Heaters and the Air District Rule

The Bay Area Air District’s adopted Rule 9-6 date for typical household gas water heaters is January 1, 2027. It covers water heaters manufactured after that date, at the point of sale or replacement; a working water heater never has to be replaced early. The Air District Board votes on November 4, 2026 on amendments that may change that date, so check baaqmd.gov after the vote.

How We Help

We install qualifying heat pumps and heat pump water heaters, pull the permit and give you what SVP’s application asks for: the itemized invoice with our license number, model numbers, before and after photos and the permit details. You submit the application on SVP’s portal. Panel and smart-panel rebates are for electrical work done by an electrician. See our HVAC rebates guide for every program near you.

Sources

Checked October 27, 2026.

What the Equipment Costs Before Rebates

Typical installed prices in the South Bay, before any rebate. Each job is quoted as a fixed price before we start.

Typical silicon valley power rebates prices in San Jose, installed, in US dollars. Checked October 2026.
ServiceTypical San Jose price (USD)
Ducted heat pump system$8,000–$25,000
Heat pump with new air handler$12,000–$22,700
Ductless mini-split, single zone$3,000–$8,000
Ductless mini-split, multi-zone$9,000–$15,000
Heat pump water heater$2,500–$6,000+
Inspection feeWaived for service plan members$59

What affects the price

  • System size. The gas-furnace rebate is $3,000 per ton, so a larger system earns more, up to $10,000.
  • What you're replacing. Replacing gas pays far more than replacing electric resistance heat.
  • The cap. SVP's rebate can't be more than your purchase, installation and permit cost, less any other incentives.
  • Electrical work. Some homes need a panel upgrade or new circuits, which have their own add-on rebates.

Most repairs are quoted as a fixed price before we start. Ranges are typical for San Jose and the South Bay and don't include current specials.

Read the heat pump installation cost guide →

How to Claim an SVP Rebate With CPI

  1. Check what applies

    We confirm your home is on SVP and what you're replacing, then quote equipment that meets SVP's specs.

  2. Photos before we start

    We photograph the old furnace or water heater and its nameplate, which SVP asks for.

  3. Permit and install

    We pull the permit, install the system and take the after photos.

  4. Final inspection

    For a heat pump, the permit final starts SVP's 60-day clock.

  5. You apply online

    You submit on SVP's online portal. We give you the invoice with our license number, model numbers, photos and permit details.

  6. SVP pays you

    Rebates of $600 or less come as a bill credit; larger ones by check.

Santa Clara Utilities and Rebates

Who serves Santa Clara homes, as of October 2026.

  • Electricity from Silicon Valley Power

    SVP is the City of Santa Clara's municipal electric utility, so SJCE and SVCE rebates don't apply in the city.

  • Gas from PG&E

    PG&E supplies gas to most Santa Clara homes, but it lists no residential heat pump or water heater rebates in 2026.

  • Neighboring cities

    San José homes use SJCE EcoHome; Sunnyvale, Cupertino and other nearby cities use SVCE Home Rebates.

  • Permits

    SVP asks for proof of the permit final on a heat pump and proof of permit issuance on a heat pump water heater.

Neighborhoods we serve: Downtown San Jose · Willow Glen · East San Jose · South San Jose · Evergreen · Cambrian Park · West San Jose · Berryessa · North San Jose · Blossom Valley

Current Specials

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What Our Customers Say

Google 4.9 from 130+ reviews: read more →See photos of our work →

  • Our new heat pump system has just been installed and we are very pleased with CPI and the new equipment. We are especially grateful for the knowledgeable and hard-working technician Bunhak, who worked throughout our recent heatwave to finish the job. We would highly recommend CPI for any HVAC installation or maintenance.

    Linda G.Google review

  • CPI and Alex were extremely helpful when our local church’s water heater kept malfunctioning and needed replacing. From the initial diagnosis, explanation and recommendation of replacement, we always felt that our needs were being tailored to. Not only were they extremely kind, knowledgeable and professional, but they also were diligent and efficient during their time.

    We’re truly grateful for their excellent work and would highly recommend CPI to anyone in need of plumbing or heating services, especially for those in larger community buildings like churches like ours.

    Stephen S.Google review

  • CPI Service is a great company to use for HVAC too! Our A/C stopped working during the recent heatwave & another company wanted to replace our whole unit. Then we called CPI & they found it didn’t need to be replaced, they fixed it that day! I really appreciate a company that responds quickly, is very professional & reasonably priced!!! I’ll be using them for sure in the future.

    Jaycee V.Google review

Silicon Valley Power Rebates FAQs

Is the Silicon Valley Power heat pump rebate still available?

Yes. As of October 27, 2026, SVP's residential rebates are open, with no waitlist or end date posted. SVP says amounts can change, so check siliconvalleypower.com before you buy.

How much is the SVP heat pump rebate?

As of October 2026, $3,000 per ton, up to $10,000, when a heat pump replaces a gas furnace, and $1,000 per system when it replaces electric heat. Households enrolled in FRAP or LIHEAP can get up to $1,000 more.

Do I need pre-approval from SVP?

No. SVP describes no pre-approval or reservation. You apply online after installation: within 60 days of the permit final for a heat pump, or 60 days of permit issuance or purchase for a heat pump water heater.

I live in Santa Clara. Can I get SVCE or San José Clean Energy rebates?

No. Santa Clara's electricity comes from Silicon Valley Power, so SVP's rebates are the ones that apply. SVCE and SJCE rebates are for their own customers.

Can I combine SVP rebates with other programs?

SVP's rebate can't exceed your cost after other rebates or grants. The federal 25C credit ended for installs after 2025, and statewide TECH and HEEHRA heat pump funds are fully reserved.

I rent my home. Can I get the rebate?

SVP lets landlords take part when the tenant is the SVP residential customer, so talk to your landlord.

Helpful Guides

Serving San Jose and the South Bay

Our shop is at 2880 Aiello Dr in San Jose. We provide silicon valley power rebates across the city and nearby South Bay and Peninsula communities. See our full service area.

Content and prices reviewed October 2026.

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