WestLight Energy Heat Pump Water Heater Rebate
$3,500 for a heat pump water heater replacing a gas water heater; $500 when replacing an electric resistance water heater (one rebate per water heater, limit 2 HPWH rebates per electric account). CARE/FERA customers add a $1,000 bonus per rebate (max $4,000 in bonuses per account), so an income-qualified gas replacement can reach $4,500. Shared bonus rebates: electrical panel upgrade $1,000 (one per account), Smart Load Management devices $500 each (limit 2), plus a $1,500 Menlo Park city kicker while funds last. Rebates cannot exceed 100% of installed cost. ADUs and new construction are not eligible. Apply within 90 days of installation with itemized invoice, city permit, and photos (old equipment, new equipment, nameplate, capped gas line, panel interior if applicable). Emergency 48-hour HPWH replacement available at (650) 314-4796. Rebranded from Peninsula Clean Energy July 2026.
WestLight Energy (formerly Peninsula Clean Energy, serving San Mateo County and Los Banos) pays $3,500 for a heat pump water heater replacing gas ($500 replacing electric resistance), plus a $1,000 CARE/FERA bonus and panel and smart-device bonuses.
Guidance
This rebate from Peninsula Clean Energy provides incentives for replacing an existing gas, propane, oil, or electric resistance water heater with a Heat Pump Water Heater (HPWH). Eligible homeowners in San Mateo County or Los Banos can receive base amounts between $500 and $2,500 per unit, plus significant bonuses for electrical panel upgrades, smart load devices, CARE/FERA enrollment, or Menlo Park residency.
Homeowner Tasks
- Verify property location and ownership status
Confirm you own the residence and that it is located in either San Mateo County or the City of Los Banos. New construction projects are not eligible.
- Provide proof of CARE or FERA enrollment
If you are applying for the $1,000 income-qualified bonus per HPWH, ensure your enrollment in these discount programs is active.
- Select optional eligible upgrades
Decide if you will include an electrical panel upgrade (max 200A after upgrade) or a Smart Load Management device to qualify for additional bonus rebates.
Contractor Tasks
- Obtain a building permit
Secure a city building permit for the project. The permit description must explicitly list the name of the upgrades being applied for.
- Take pre-installation and decommissioning photos
Capture photos of the old water heater before removal, OR take clear photos of the capped gas line showing the old equipment has been decommissioned.
- Take post-installation equipment photos
Take at least one photo of the newly installed HPWH from afar, and a clear close-up photo of the system nameplate sticker showing its specifications.
- Provide a final itemized invoice
Supply a final invoice detailing the name and total cost of each specific upgrade included in the application.
- Submit the application via the online portal
Upload all required photos, the closed city permit, and the final invoice. If the rebate check is going to you (the contractor), you must provide proof that the rebate amount was fully passed down to the customer as a discount.
Qualification
- Has income-qualified portion
Customers enrolled in CARE or FERA discount programs receive an additional $1,000 bonus rebate per heat pump water heater, with a lifetime limit of $4,000 in such bonuses per electric account.
- Permit required
Not required: energy star certified equipment · ahri matched pair · income-qualified · pre-approval required · contractor enrollment required · fuel switching required
How to Submit
Submit through the online rebate portal on the Peninsula Clean Energy website. Requires uploading photos of the old and new equipment, the nameplate sticker, the capped gas line, the final itemized invoice, and the closed city permit.