Heat Pump Water Heater (HPWH)
Incentive for Contractors

BayREN and participating Bay Area electricity suppliers are offering an incentive up to $1,000—paid directly to licensed contractors—for replacing their customers’ natural gas or propane residential water heaters with high efficiency heat pump water heaters (HPWH).

You can browse Qualified Products by clicking here.


Click on image above to download flyer.

How to Enroll


Step 1. Eligible?

Review the eligibility criteria below. If you meet those, move forward.

Step 2. Agreement

Download, complete and submit the Contractor Participation Agreement. 


Step 3. Confirmation

Once your eligibility and agreement is confirmed, you will be enrolled, and a log-in link to the Incentive Processing Platform will be provided.

Incentive Details

$1,000 per heat pump water heater installed

Paid directly to the participating contractor

Can be paired in some cases to a Home+ incentive

Contractor Eligibility

Must be a licensed contractor holding C-36, C-20 or General B license

Must complete the program participation agreement


The homeowner must be a current customer of one of these participating electricity suppliers:

  • East Bay Community Energy (May 2020)

  • MCE (May 2020)

  • Silicon Valley Power (City of Santa Clara) (May 2021)


The heat pump water heater must:

  • Be replacing an existing natural gas or propane water heater 

  • Have a Uniform Energy Factor (UEF) of 3.1 or greater

  • Have grid-connected capabilities

  • Be listed on the program’s Qualified Products List

Frequently Asked Questions


What do Heat Pump Water Heaters cost?

They cost more than gas or conventional electric water heaters, but the energy savings can make up for the initial cost difference. Installation costs may include an upgrade to the electrical service panel. Planning for HPWH installations ahead of time and when financing other projects may help bring down the overall cost of the electrical work.

Is installation difficult?

No, but not all contractors have HPWH experience. Your customer should use one who does, and one who is enrolled in the rebate programs.

Are there rebates for HPWHs?

Yes! Rebates are currently available to homeowners all across the region. Look at the list of rebates and incentive programs at the top of the page for more information.

Incentives are paid for by participating agencies: