Due to Santa Clara County’s Shelter in Place Order, heat pump water heaters may be installed if there is a health or safety issue caused by lack of a working water heater on the premises. Customers wishing to participate in the heat pump water heater rebate are welcome to review the eligibility and requirements outlined on this page and if interested, can follow the online application link below.


The City of Palo Alto Utilities (CPAU) is currently offering a rebate of up to $1500 to residents who install a high efficiency, electric heat pump water heater (HPWH).



To participate in this program you must be a CPAU residential customer replacing a gas or electric water heater or installing a HPWH in a new or remodeled home. The new HPWH must be Energy Star certified and have a Uniform Energy Factor (UEF) of 2.87 or higher.




Eligible residents that participate in the HPWH program can receive rebates for installation of a HPWH. Rebate funding is subject to availability and may change without prior notice.



Before you get started, review our advice on Steps For Installing A HPWH.

    If you're ready to sign up for the program, please fill out the Heat Pump Water Heater Program Online Application before you begin your HPWH installation. A CPAU representative will contact you once we receive notification that your application has been submitted.

    CPAU staff will review your application and, if approved, will send an email with instructions to submit the following required documents: 
  • Copy of permit with final inspection signature
  • Invoice for purchase of HPWH
  • Invoice from contractor/plumber/electrician
  • Any photos that you would like to share (optional)


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