City of Palo Alto, CA

07/01/2026 | Press release | Distributed by Public on 07/01/2026 16:14

Limited Time: Save $500 When You Switch to a Heat Pump Water Heater

Limited Time: Save $500 When You Switch to a Heat Pump Water Heater

Published on July 01, 2026

Palo Alto residents can now save an extra $500 on a new heat pump water heater for a limited time from July 1 through October 31, 2026.

The discount applies to heat pump water heater projects completed through the City's Electrify My Home program, including the Emergency Replacement & Fast service and self-managed projects through the Rebate Hub. The $500 discount is automatically applied and combined with existing City rebates and incentives.

For residents facing an unexpected water heater failure or want to expedite the replacement, the City's Emergency Replacement & Fast service offers a fast option to replace a water heater within 48 hours; installations start at $2,100. The $500 discount is already included.

Speed up the process of switching to an electric heat pump water heater, call us at .

Why Make the Switch to Electric?

Switching to electric not only saves time and money, but also creates a cleaner, safer environment for your home and the community. Because Palo Alto's electricity is sourced from 100% clean energy, every home that goes electric decreases the amount of regional greenhouse gases produced, helping to reach the City's sustainability and climate action goals.

How the Discount Works

  • Available July 1 through October 31, 2026
  • Applies only to heat pump water heater projects
  • Available through Electrify My Home, Emergency Replacement & Fast and self-managed projects through the Rebate Hub
  • Automatically applied to eligible projects
  • Combined with other available rebates and incentives
  • The $500 discount is confirmed with a signed project contract or rebate reservation (for those completing the project with your own contractor) and is provided once your heat pump water heater installation is installed

Home Electrification Support

The City offers support for residents to go electric at home. Switch home appliances such as heating and cooling systems, induction cooking equipment, and more through the Electrify My Home program. Gain rebates, permits, and full support to install or go with your own contractor. Make the switch to electric and help create a cleaner, healthier community for all.

One call does it all:

Weekend service is available at an extra charge.

FAQ

What is the Fast service?

The Fast service is an extension of the City's emergency heat pump water heater replacement program and is an option for all residents wanting to switch fast. Switch your gas water heater to an electric heat pump water heater within 48 hours. One call still does it all. Call us at to get started. Weekend service is available for an additional charge.

Does my water heater project qualify for the discount?

If you are replacing your gas water heater with an electric heat pump through any City's programs, then the project qualifies for the $500 discount.

How does a heat pump water heater save money over time?

Heat pump water heaters are incredibly efficient because they transfer heat from the surrounding air into water rather than generating heat from scratch. This technology uses up to 70% less energy than standard water heaters.

Can I stack the $500 discount with other rebates and incentives? 

Yes. The limited-time $500 discount is automatically applied and paired with existing City of Palo Alto rebates and incentives.

What happens if my current water heater stops working unexpectedly? 

If your water heater fails unexpectedly, the City's emergency replacement service ensures you have a qualified contractor to install a new electric heat pump water heater within 48 hours so you can get hot water up and running again in your home.

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City of Palo Alto, CA published this content on July 01, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 01, 2026 at 22:14 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]