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Residents of the City of Santa Clara, California, can get up to $10,000 back when they replace an old gas furnace with an electric heat pump. The rebate is offered by Silicon Valley Power (SVP), the city's municipal electric utility. The program runs for the current program year, from July 1, 2026 to June 30, 2027.
For many homeowners, this is one of the largest local incentives for upgrading home heating in the Bay Area. The program was paused during the last cycle (from January 31 to July 1, 2026), so it is best to apply without delay.
How Much You Can Get
The main rebate is $3,000 for every ton of capacity of the new heat pump, up to $10,000 per system.
Add-on rebates for insulation and air sealing are available only while a main heat pump rebate is in progress. Amounts up to $600 are applied as a credit on your electric bill; larger rebates are paid by check.
Who Is Eligible
The rebate is available only to Silicon Valley Power residential customers living in the City of Santa Clara. Residents of neighboring cities in Santa Clara County, such as San Jose, are served by other providers and are not eligible.
- To qualify for the gas furnace rebate, you must replace an existing gas, propane, oil, or wood heater.
- Dual-fuel systems that keep gas as a backup heat source do not qualify.
- The work must be done by a California-licensed contractor.
Why Switch to a Heat Pump
According to SVP, modern heat pumps can be up to three times more efficient than gas or electric resistance systems. A single unit heats your home in winter and cools it in summer.
Removing gas combustion from the home eliminates carbon monoxide risks and other indoor air pollutants. Many models need minimal ductwork changes, and some work with existing wiring, helping you avoid a costly electrical panel upgrade.
Conclusion
A rebate of up to $10,000 significantly lowers the cost of switching to a heat pump and puts it within reach for many Santa Clara families. Program terms and eligibility rules are published on the Silicon Valley Power heat pump rebate page.
Want to find out how much you could receive? Call us at +1 (669) 312-3643 or contact us online, and we will help you choose the right system and apply for the rebate.
During a repair visit, our technicians will inspect your A/C system, diagnose the problem, and provide you with repair options. Once you choose an option, we'll proceed with the necessary repairs. Afterward, we'll test the system to ensure it's working correctly and provide you with a detailed report.
