Home Rebates, Incentives and Tax Credits Update

-Stackable rebates from $2,000-$9,200 now available, depending upon utility service-

Funding and Permitting for All Rebates Require the Following

• City and county permitting fees by project
• State of California registration fee of $30
• Advanced and post Home Energy Rating Systems (HERS) and Combustion Appliance Zone (CAZ) testing required and will be quoted in advance
• Rebates require gas appliances to be replaced (gas furnace or gas water heater)
• Pre-approved reservation will be required prior to installation 
• All HVAC programs offered through TECH Clean California now require itemized Statements of Work and signed terms and agreements
• Qualifying Heat Pump models must meet AHRI ratings — some 5-ton systems may not apply
• CPAU, HEEHRA and TECH rebates are sent to the contractor.  Once received, a check will be mailed to the client
• SVCE, SJCE and PCE rebates are sent directly to clients

Peninsula Clean Energy (PCE)

• Rebates up to $4,000*
  • Heat pump water heater - $2,500
  • Heat pump - $1,500
  • The processing fee is $150
  • Zero interest loans up to $10,000 with no credit checks and no fees. Zero interest loans
  • Get all rebate details at: https://www.peninsulacleanenergy.com/residential/rebates-offers/
  • Apply for your rebate here: https://www.peninsulacleanenergy.com/residential/rebates-offers/appliance-rebate-application-form/
  • The processing fee is $150 if you elect Valley Heating, Cooling, Electrical and Solar  to process this rebate for you. 

* Available only to San Mateo County residents and PCE customers 

City of Palo Alto Utilities (CPAU)

• Rebates up to $8,500*
  • Heat Pump Water Heater - $3,500
  • Heat Pump - $2,500
  • Electrical Panel Upgrade - $1,000
  • Electric Circuit for Installation - $500
  • The processing fee is $150

* Available only to City of Palo Alto residents and CPAU customers 

Silicon Valley Clean Energy (SVCE) Rebates

• Rebates up to $6,000*  
  • Heat Pump $2,500
  • Heat Pump Water Heater $2,000
  • Electrical Panel Upgrade $1,000
  • EV Circuit $500
  • Client must reserve this rebate directly with SVCE - Rebate Application
  • The rebate must be approved for funds to be reserved, and this must be finalized before the project is completed. 
  • Funding for the rebate will happen after the client finalizes the request when the job has been completed- all details available HERE

*Available only to SVCE customers 

San Jose Clean Energy (SJCE) Rebates

• Rebates up to $6,700 
  • Heat Pump $1,500
  • Heat Pump Water Heater $2,000
  • Electrical Panel Upgrade $1000
  • Blown-In Insulation up to $700
  • EV Circuit $500
  • Client must reserve this rebate directly with SJCE - Rebate Application
  • The rebate must be approved for funds to be reserved, and this must be finalized before the project is completed. 
  • Funding for the rebate will happen after the client finalizes the request when the job has been completed- all details available Rebate Claim
  • Additional rebates with income verifications @ Environmental Justice Communities Qualifications
  • For renters: Property Owner Attestation of Approval
  • Interest free payment plan up to $5000 available

https://sanjosecleanenergy.org/ecohome-payment-plan/ 

*Available only to SJCE customers 

 Federal Tax Credits- Ending 12/31/2025  

• Customers can claim 30% of project cost for qualifying
• Annual credit for Heat Pump installation $2,000 
• Tax advisors can assist in claiming the credits
• Please visit https://www.irs.gov/credits-deductions/home-energy-tax-credits for complete information
• Please confirm your eligibility with your tax advisor prior to installation

TECH Clean Energy Incentives*

TECH Clean California single family heat pump HVAC and heat pump water heater incentives are now available. Funding is first come, first served. Rebate reservations are required.  Valley will reserve a TECH Clean California incentive for you.   

Heat Pump Incentive Requirements

Customers who receive a TECH Clean California incentive for a heat pump HVAC or a heat pump water heater must enroll in an approved demand response program. Demand response enrollment is not required to receive the HEEHRA rebate. In addition, customers receiving a TECH Clean California incentive for a heat pump water heater must enroll in a  time-of-use rate and a water heater rewards program, where available. Learn more about these requirements and their enrollment process below: 

Customers who have questions about the status of the incentives, please contact TECH.info@energy-solution.com.

• Up to $1,500 for a Heat Pump 
• Up to $3,300 for a Heat Pump Water Heater

New Requirement: Demand Response (DR) program enrollment. We will reserve the rebate in advance of installation

*All rebates are in place while funds last 

High Energy Electric Home Rebate Act (HEEHRA) – SINGLE FAMILY

• Single family households with combined incomes between 80% and 150% Average Median Income (AMI) will be eligible for up to $4,000 in rebates per project
• Single family households with combined income less that 80% AMI will be eligible for up to $8,000 in rebates per project
• Processing fee to be determined and is based on location of equipment
• Homeowners must get income pre-approval in advance of the project
• Submit application: [https://www.heehra-incomeportal.com/]. In the request contractor field, please enter info@valleyheating.com 
• Once the customer has completed the application, the Valley Team and the client will receive notification emails as to whether their income verification was approved or denied.
• Our team will need to work with you to design your system and reserve your rebate through TECH Clean California before we continue with the installation. 
•  For more information about this process, please see this Knowledge Base article. 
• All HEEHRA projects must be installed and invoiced by December 31, 2025, to take advantage of the 25C federal tax credit that expires at the end of the year. The tax credit is only available for heat pumps placed into service by December 31, 2025.  This Energy Efficient Home Improvement Credit tax credit could provide additional financial benefits to homeowners. See this IRS page announcement and contact your tax professional to learn more. All HEEHRA projects must be installed and invoiced by February 28, 2026. 
• Applications for payment must be submitted with complete documentation to Iris by February 28, 2026. We highly encourage early submittals of information and acknowledge that this is a shortened timeline for claim submission than previously required.  

Paused Program – Stay Tuned – This Program is Expected to Return

High Energy Electric Home Rebate Act (HEEHRA) – Multi-Family

• Up to $14,000 in rebates for multi-family homes
  • Rebates include heat pumps and heat pump water systems
  • Qualifying
    • Property owners must be within the Average Medium Income (AMI) level to qualify
      • Based on city location and number of household residents
    • Property owner must get income pre-approval in advance of the project: https://techcleanca.com/incentives/heehrarebates/
    • Submit application: https://forms.office.com/r/fc7eeKXLdS
  • Processing fee to be determined and is based on location of equipment