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WestLight Energy Home Upgrade Rebates for 2026

If you live in Atherton, Menlo Park, Portola Valley or Woodside, WestLight Energy (formerly Peninsula Clean Energy) pays $3,500 when a heat pump water heater replaces a gas one and $1,500 per heat pump unit that replaces gas heat, as of October 2026. There's no pre-approval or contractor list: install, then apply within 90 days.

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What WestLight Pays For

Amounts as of October 2026, from WestLight's rebate terms (effective May 18, 2026). Rebates are first-come, first-served while funds last.

  • Heat pump water heater

    $3,500 when it replaces a gas, propane or oil water heater (tank or tankless); $500 when it replaces an electric-resistance one. Up to 2 per electric account. See heat pump water heaters.

  • Heat pump heating and cooling

    $1,500 per outdoor (or packaged) unit, up to 2 per account, when it replaces a gas, propane, oil or wood-stove heater. Ducted and ductless both qualify. See heat pump installation.

  • Electrical panel bonus

    $1,000, once per account, for a main panel or subpanel upgrade (200 A or less after the work) done within 6 months of the heat pump install. A new circuit alone doesn't count.

  • Smart circuit bonus

    $500 each, up to 2 per account, for circuit splitters, circuit pausers, smart panels or smart breakers installed within 6 months of the heat pump.

  • CARE/FERA bonus

    $1,000 more on each heat pump water heater and heat pump HVAC rebate if you're on PG&E's CARE or FERA discount.

  • 0% loan and Full-Service (WestLight's contractors)

    A 0% loan up to $10,000 and a Full-Service program with fixed pricing. Both use WestLight's own approved or partner contractors, not a contractor you bring.

Will You Qualify for the Rebate?

From WestLight's rebate terms. The rebate is paid after the install.

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  • You're a WestLight customer

    WestLight serves all of San Mateo County (including Atherton, Menlo Park, Portola Valley and Woodside) and the City of Los Banos. You need an active WestLight electric account.

  • The heat pump replaces gas, propane or oil

    The old appliance must be decommissioned, for example with a capped gas line. A heat pump that only replaces electric heat or a fireplace doesn't qualify for the HVAC rebate.

  • The system is fully electric

    Any all-electric heat pump water heater or heat pump HVAC qualifies, at any efficiency. Dual-fuel systems with gas backup don't.

  • The property owner applies

    Rentals are fine if the owner applies. New construction, ADUs and remodels replacing half or more of the roof are excluded.

  • You apply within 90 days

    The application is due within 90 days of the install being completed. No pre-approval is needed.

  • Any contractor can do the work

    The rebate has no participating-contractor list; a licensed contractor of your choice or a self-install qualifies.

WestLight Energy Rebates at a Glance (October 2026)

WestLight Energy is the new name of Peninsula Clean Energy, the community electricity provider for San Mateo County; it rebranded on July 1, 2026, and the new name has appeared on bills since July 17. Its Home Upgrade Rebates are open. Amounts below are as of October 2026 from the WestLight rebate page.

Measure Standard Income-qualified (CARE/FERA) Limits
Heat pump water heater replacing gas, propane or oil $3,500 $4,500 (with $1,000 bonus) 1 per water heater replaced, 2 per account
Heat pump water heater replacing electric resistance $500 Check with WestLight Same; heat pump to heat pump not eligible
Heat pump HVAC replacing gas, propane, oil or wood stove $1,500 $2,500 (with $1,000 bonus) 1 per outdoor or packaged unit, 2 per account
Electrical panel upgrade (bonus) $1,000 $1,000 1 per account; 200 A or less after; within 6 months of the heat pump
Smart circuit devices (bonus) $500 each $500 each 2 per account; within 6 months of the heat pump

A limited-time $500 bonus applied to gas-replacement heat pump water heaters installed September 1 through October 31, 2026. WestLight hadn’t posted the amount for later installs as of October 27; its terms list $3,500 as the standard rebate.

WestLight has no rebate for smart thermostats, AC-only systems, gas furnaces or duct sealing.

Rules That Trip People Up

  • The old gas appliance has to go. WestLight wants proof it was decommissioned: a capped gas line, or before and after photos.
  • Dual-fuel doesn’t count. A heat pump with a gas furnace as backup isn’t eligible. Neither is a heat pump that only replaces electric baseboard heat or a fireplace.
  • The 90-day clock starts at completion. Apply within 90 days of the install, with an itemized invoice showing the pre-rebate cost, photos of the unit, its nameplate and the panel interior, proof of decommissioning, and the city permit. The initial permit is fine; you don’t have to wait for the final.
  • The panel bonus needs a real panel upgrade. Adding a circuit isn’t enough, and the panel must be 200 A or less after the work.
  • Owners apply. A contractor can apply for you, but can only be paid the rebate if the invoice shows the full amount passed through to you.
  • Demand response. WestLight may enroll rebated equipment in future demand-response programs; you can opt out.

Rebate, Loan or Full-Service?

WestLight runs three paths, and they don’t mix.

The rebate works with any licensed contractor, including us, or a self-install. This is the path where CPI fits: we install, pull the permit and give you the paperwork.

The 0% Home Upgrade Loan lends up to $10,000 with no fees and no credit check, repaid on your PG&E bill over 2 to 5 years. It must be approved before installation, and only a WestLight loan-approved contractor’s work is financed. If you’d rather spread the cost of a CPI install, ask about our 12-month 0% financing.

Full-Service gives owner-occupants of single-family homes up to fourplexes fixed pricing through WestLight’s partner contractors; you can’t bring your own. It’s no-cost for qualifying households: homes under 2,000 sq ft, investable assets of $500,000 or less, one property owned, and income at or below 80% of area median ($117,700 for one person or $168,100 for four in San Mateo County) or enrollment in programs like CalFresh or SSI. WestLight’s 24/7 emergency gas-to-heat-pump water heater replacement also runs through its partner contractor. Full-Service and emergency jobs can’t also file the rebate.

Stacking With Other Programs

WestLight lets you combine its rebate with regional and state programs, as long as the total doesn’t exceed the installed cost. BayREN’s EASE Home covers insulation and duct work for income-qualified households but not heat pump equipment. Statewide programs are closed or waitlisted; see California heat pump rebates. The federal 25C credit ended for installs after 2025.

Sources

Checked October 27, 2026.

What the Work Costs Before Rebates

CPI's typical installed prices, before any rebate. Every job is quoted as a fixed price before we start, and the invoice shows the pre-rebate cost WestLight asks for.

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

What affects the price

  • What you're replacing. Gas, propane or oil earns the full rebate; electric-resistance water heaters earn $500.
  • Electrical work. A panel upgrade or smart circuit device can add a $1,000 or $500 bonus.
  • Income. CARE/FERA customers get $1,000 more per heat pump rebate.
  • Installed-cost cap. WestLight, regional and state rebates together can't exceed what the job cost.

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 the WestLight Rebate

  1. Check your provider

    Your PG&E bill shows WestLight Energy (or Peninsula Clean Energy on older bills) as your generation provider. We'll confirm what you're replacing qualifies.

  2. Get a fixed-price quote

    We quote an all-electric system and itemize the pre-rebate cost, which the application asks for.

  3. Install and permit

    We pull the city permit, install the heat pump, cap the gas line and take photos of the unit, nameplate and panel interior.

  4. Apply within 90 days

    You apply online with our invoice, the photos, proof the old unit was decommissioned and the permit. The initial permit is accepted.

  5. Get your check

    WestLight reviews applications in about 15 business days; the check arrives about 4 to 6 weeks after you apply.

Rebate Notes for San Mateo County Towns

For CPI's San Mateo County service area, as of October 2026.

  • Atherton, Menlo Park, Portola Valley, Woodside

    All four are in WestLight Energy territory, so the rebate applies wherever you are in these towns.

  • Atherton permit fees

    San Mateo County's sustainability office says permits are free in Atherton and Burlingame when a heat pump water heater replaces a gas water heater.

  • Air District water heater rule

    The Air District's adopted Rule 9-6 date for typical home water heaters (under 75,000 BTU/hr) is January 1, 2027, at sale or replacement; working heaters never have to be replaced early. A Board vote on November 4, 2026 may change that date.

  • Fremont, San Jose and Santa Clara County

    Not WestLight territory. See our HVAC rebates guide for your provider.

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

WestLight Energy Rebates FAQs

Is the WestLight (Peninsula Clean Energy) rebate still available?

Yes, as of October 27, 2026. Rebates are first-come, first-served while funds last, with no set end date. WestLight says it will post at least one month's notice before changing them, and the amount is set by the date your install is completed.

How much is the WestLight heat pump water heater rebate?

$3,500 when it replaces a gas, propane or oil water heater, $500 when it replaces an electric-resistance one, plus $1,000 for CARE/FERA customers. A limited-time bonus raised the gas-replacement rebate to $4,000 for installs completed September 1 to October 31, 2026.

Do I need pre-approval?

Not for the rebate. You install first, then apply within 90 days of completion. The 0% loan is different: it must be approved and signed before installation starts.

Can I use any contractor?

For the rebate, yes: there's no participating-contractor requirement. The 0% loan only covers work by a WestLight loan-approved contractor, and Full-Service and emergency water heater jobs use WestLight's partner contractors.

Does it stack with other rebates?

Yes. WestLight allows stacking, but WestLight, regional and state rebates together can't exceed the installed cost. The federal 25C tax credit ended for installs after December 31, 2025.

I rent my home. Can I get the rebate?

The property owner has to apply. Rentals qualify when the owner applies.

Helpful Guides

Serving San Jose and the South Bay

Our shop is at 2880 Aiello Dr in San Jose. We provide westlight energy 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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