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 an Uniform Energy Factor (UEF) of 2.87 or higher.




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

 Table of rebate amounts


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


 Part 1

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


 Part 2

Once you've finished your HPWH installation, please click the button below and upload all necessary documents.

Required Part 2 documents include:

  • 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)
HPWH Rebate Application


Review our Resources page for FAQs, contact information, and more.


We are looking for your feedback on our new webpages. Please visit our short survey page.