Heat Pump Incentives for HVAC and Water Heaters
Take Advantage of Generous Incentives for a New Heat Pump HVAC and Hot Water Heater System
Improve the Comfort of Your Home – Year Round
A high efficiency heat pump HVAC system creates a more comfortable living space than your current furnace and AC system and also improves home air quality because heat pumps don’t use combustion fuels like natural gas (methane), which can spread pollutants throughout your home.
Reduce Your Energy Expense
Heat pumps move heat instead of generating it, so they use less energy and are more efficient than your existing furnace, air conditioning and hot water heating systems.
And, if you power your new heat pump HVAC and hot water heater system with solar you can enjoy comfort in your home guilt free!
Explore Current Heat Pump Incentives
Tax credits and incentives for Heat Pump HVAC and Heat Pump Water Heaters are alive and well for 2025 installations. But you better hurry, because the status of tax credits and rebates for 2026 is uncertain.
Here are the tax credits and rebates currently available to homeowners in Silicon Valley who replace old natural gas furnaces and water heaters with heat pumps:
| 30% Energy Efficiency Tax Credit | Silicon Valley Clean Energy Rebate | San Jose Clean Energy Rebate | Peninsula Clean Energy Rebate | Totals | |
|---|---|---|---|---|---|
| Heat Pump HVAC | $2,000 | $2,500 | $2,500 | $1,500 | $3,500-$4,000 |
| Heat Pump Water Heater | $2,000 | $2,000 | $2,000 | $2,500 | $4,000-$4,500 |
| Electric Panel Upgrade | 30% with solar | $1,000 | $1,000 | $1,000 | $1,000+ |
| Wiring Upgrades | $500 / circuit | $500 / circuit | $500+ |
These incentives are in addition to the 30% Tax Credit for Solar and Battery Storage systems.
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Act today to get a free quote while incentives are still available.
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