SJCE EcoHome Rebate - Heat Pump Water Heater
Heat pump water heater (replacing gas, minimum 40-gallon): $2,500 standard or $3,500 for a qualifying Environmental Justice Community applicant. Add-on rebates alongside the HPWH: electric panel upgrade $1,000 standard / $2,000 EJC, circuit prewiring $500 / $750 each, circuit pauser/splitter $250, attic insulation $0.75/sq ft up to $700 / $1,000 (with HP HVAC). Approval is required BEFORE installation begins and approved funds expire 120 days after the approval email. Total SJCE plus third-party incentives cannot exceed project cost. The spring 2026 $500 bonus (installs April 1 - May 31, 2026) has expired.
San José Clean Energy offers a rebate of $2,000 for replacing a gas-powered water heater with an electric heat pump water heater. Residents in Environmental Justice Communities or those who are income-qualified can receive an increased rebate of $3,000.
Guidance
San José Clean Energy (SJCE) offers a $2,000 to $3,000 rebate for replacing an existing gas water heater with an energy-efficient electric heat pump water heater. Customers enrolled in income assistance programs or residing in Environmental Justice Communities (EJC) are eligible for the maximum rebate amount.
Homeowner Tasks
- Confirm active customer status with San José Clean Energy.
You must be an active SJCE customer to qualify for this rebate.
- Provide a copy of your recent utility bill.
The bill must show your electric account number to secure pre-approval prior to installation.
- Provide proof of income qualification or EJC residency, if applicable.
If you are enrolled in CARE, FERA, SJ CARES, or live in an Environmental Justice Community, you will need to provide verification to claim the $1,000 bonus.
Contractor Tasks
- Ensure the new system replaces a gas-powered water heater.
The rebate is only valid when transitioning from a gas water heater to an electric heat pump water heater.
- Cap the existing gas line during installation.
The old gas line must be safely capped and documented for the application.
- Take photos of the installation.
Capture clear photos of both the newly installed heat pump water heater and the capped gas line.
- Provide a copy of the final invoice and the final building permit.
These documents must be submitted with the online application.
- Submit the application online.
Upload the final invoice, installation photos, capped gas line photos, and the final permit after the installation is complete.
Qualification
- Has income-qualified portion
Residents in highlighted Environmental Justice Communities (EJC) qualify for higher rebate amounts. Residents outside these areas may still qualify for the higher amount if enrolled in CARE, FERA, SJ CARES, or another income-based assistance program.
- Pre-approval required
- Permit required
- Fuel switching required
Must replace an existing gas-powered appliance with a heat pump water heater.
Not required: energy star certified equipment · ahri matched pair · income-qualified · contractor enrollment required
Budget & Availability
- January 23, 2026Rebates are available.
How to Submit
Submit an application online after installation. You will need to provide verification documents including the final invoice, photos of the new equipment and capped gas line, and the final permit.