Electric Water Heater FAQs

Palo Alto’s most frequently asked questions about heat pump water heaters

The City’s program to support Palo Altans switch from old gas water heaters to cleaner, safer, and smarter heat pump water heaters is picking up steam. Residents have asked us to answer lots of questions about switching. Here are the top five: 

1. Honestly, how much will this actually save me?

Save with the City’s full-service program, the price for a standard 65-gallon heat pump water heater installation is only $2,300. In addition, for homes that need some extra work to electrify their water heaters, the City also offers a credit of up to $1,000 for site preparation costs.

Have a water heater emergency? Switch quickly to a new heat pump water heater within two days using the City's emergency program. Costs start at $3,650, weekend service available at extra charge.

2. Seriously, do I need to swap out my old gas water heater?

Though the City is no longer enforcing a ban on gas water heaters in new homes, switching now makes a lot of sense. Gas water heaters will only become more problematic over time. Heat pump water heaters are better for the environment while delivering all the hot water you need when you want it. Right now, today, the City will do everything you need to switch.

3. Realistically, what happens if the power goes out?

The same with gas water heaters: You can use the hot water you have in the tank, but you’ll need electricity to produce more. (Gas water heaters still need electricity to power the pump.) Thankfully, the City is simultaneously striving to help residents switch while upgrading our electrical grid further to be more efficient and resilient.

4. Basically, how does the installation work?

To start, all it takes is a call, email, or filling out an online form. Our Home Efficiency Advisor will contact you and guide you through the process. If you want, we’ll handle the inspection (when it’s convenient for you), estimates (that include every last thing, including permits), installation (which should be done in a day), payment (with all the rebates we promised), and inspection (to make sure everything was done right and we can provide the permit). Find a step-by-step guide to the program here(PDF, 6MB) .

5. Approximately, how much will I save on utility bills?

We can’t give you a hard number because everyone uses water differently. That said, gas will only get more expensive. Heat pump water heaters, on the other hand, are up to three times more efficient than gas models. And we could all use appliances that are cleaner, safer, and smarter.  

What if I have more questions?

Contact the City’s Home Efficiency Advisor at (650) 713-3411, switch@cityofpaloalto.org, or get into the weeds with our comprehensive program guide.