Your gas water heater dies on a Saturday. Before you replace it with the same thing, it’s worth knowing Santa Clara has one of the most generous water-heater rebates in the Bay Area sitting unclaimed.
Silicon Valley Power (SVP) pays up to $5,500 toward a heat pump water heater that replaces a gas unit — up to $6,500 if your household is income-qualified. This rebate is only available to City of Santa Clara SVP customers; it doesn’t apply anywhere else in the Bay Area, including neighboring cities served by Silicon Valley Clean Energy (SVCE).
Key Takeaways
- Up to $5,500 from SVP for a gas-to-electric heat pump water heater — up to $6,500 if you qualify for the FRAP or LIHEAP bonus (income-assistance programs)..
- This rebate is exclusive to City of Santa Clara SVP customers. If you’re on SVCE (Sunnyvale, Cupertino, Milpitas, and most of the rest of the county), the rules and amounts are different — see the comparison below.
- Replacing an existing electric water heater (not gas) still qualifies for a smaller $500 rebate.
- Only labor from a licensed contractor counts toward the rebate — DIY installs are excluded, and funds are issued as a bill credit or check within 2–3 billing cycles.
Table of contents
- What the SVP rebate covers
- SVP vs. SVCE: why your rebate depends on your city
- How to claim the rebate, step by step
- Who qualifies (and what disqualifies you)
- FAQs
What the SVP rebate covers
A heat pump water heater (HPWH) pulls heat from the surrounding air to warm your water instead of burning gas or running pure electric-resistance elements, which is why it uses roughly a quarter of the energy of a standard electric tank. According to ENERGY STAR, an ENERGY STAR certified HPWH can save a typical household hundreds of dollars a year compared to a standard electric water heater. SVP’s rebate is built to push exactly this swap:
| Replacement type | Base rebate | Income-qualified bonus | Max total |
|---|---|---|---|
| Gas water heater → heat pump water heater | $5,500 | +$500 FRAP, +$500 LIHEAP | $6,500 |
| Electric water heater → heat pump water heater | $500 | +$250 FRAP, +$250 LIHEAP | $1,000 |
FRAP (Financial Rate Assistance Program) and LIHEAP (Low Income Home Energy Assistance Program) bonuses stack on top of the base rebate for income-qualified households. Figures verified against SVP’s official rebate page (last updated 2026-07-07) — always confirm current amounts before you apply, since city programs change funding levels through the year.
If your new water heater requires a bigger electrical circuit, SVP also offers a separate Smart Electric Panel rebate that can help offset the cost of an electrical panel upgrade.
SVP vs. SVCE: why your rebate depends on your city
Most of Santa Clara County gets electricity from PG&E’s wires. However, clean-energy rebates come from Silicon Valley Clean Energy (SVCE), a separate county-run program. The City of Santa Clara is the exception: it runs its own municipal utility, Silicon Valley Power, so SVCE’s territory explicitly carves Santa Clara out. If you live in Santa Clara, you file with SVP, not SVCE.
| Program | Territory | Gas-to-electric HPWH rebate |
|---|---|---|
| Silicon Valley Power (SVP) | City of Santa Clara only | $5,500 (up to $6,500 income-qualified) |
| Silicon Valley Clean Energy (SVCE) | Rest of Santa Clara County (Sunnyvale, Cupertino, Milpitas, Mountain View, and others — not Santa Clara city) | $2,500 base, +$500 spring 2026 bonus, +$1,000 income-qualified |
If you’re outside Santa Clara city, SVCE’s program applies instead — not SVP’s. Not sure exactly which rebates you’re eligible for? Check our current HVAC and water heater rebate guide for the full, up-to-date list by city and utility.
How to claim the rebate, step by step
- Confirm you’re an SVP customer. Your electric bill will say Silicon Valley Power / City of Santa Clara Municipal Utilities, not PG&E.
- Choose an ENERGY STAR certified heat pump water heater sized correctly for your household — an oversized or undersized tank wastes the efficiency gain. Our Air & Plumbing Systems team can size and recommend the right unit for you at the free estimate.
- Hire a licensed contractor. SVP explicitly excludes customer-performed labor from reimbursement, and most installs also need a City of Santa Clara permit. Air & Plumbing Systems (CSLB
#901246) is licensed for exactly this work. - Submit the rebate application with proof of purchase and installation. Our team will help you prepare the required paperwork and guide you through the application process.
- Wait 2–3 billing cycles. Rebates under $600 post as a bill credit; larger ones — including the full $5,500–$6,500 water heater rebate — arrive as a check.
Ready to Claim Your $6,500?
Who qualifies (and what disqualifies you)
You need to be a residential SVP account holder in the City of Santa Clara. Landlords can apply for measures installed at SVP-served rental properties. You’ll be disqualified if:
- The work is done by the homeowner (DIY) instead of a licensed contractor.
- The rebate request exceeds the net purchase price of the unit.
- Your SVP account isn’t active.
Funding is allocated on a rolling basis. A project that qualifies in January isn’t guaranteed the same funding availability in November — get your paperwork in as early in your project as you can.
For a deeper look at SVCE and BayREN eligibility if you’re outside Santa Clara, see our guide to heat pump water heaters in the Bay Area, or the broader energy rebate hub, which covers solar, panel, and battery incentives stacking alongside a water heater swap
Already decided on SVP and want help sizing the unit and filing the paperwork? Our Santa Clara heat pump water heater rebate page covers the installation side in more detail, and if you’re also replacing HVAC equipment, the separate SVP heat pump HVAC rebate can be filed alongside it.
FAQs
No. The two programs are territory-exclusive — you file with whichever utility actually serves your address. If you’re a City of Santa Clara SVP customer, SVCE won’t process your application at all, and vice versa.
Often close to it. Installed heat pump water heaters commonly run in the $6,000–$7,000 range depending on tank size and any electrical work needed, so a $5,500–$6,500 SVP rebate can offset most of the upfront cost. The rebate can’t exceed the net purchase price of the unit.
You still qualify, just at a lower amount — SVP pays $500 for an electric-to-electric heat pump water heater swap, plus up to $500 more in income-qualified bonuses. The bigger $5,500 rebate is specifically for replacing gas.
SVP allows 2 to 3 billing cycles from submission. Smaller rebates (under $600) show up as a bill credit on your municipal utilities statement; larger ones, including the full water heater rebate, are issued as a check.
Phone: (408) 733-2000
Email: info@airandplumbing.com
Ready to swap your gas water heater for an electric heat pump model? Air & Plumbing Systems handles the sizing, installation, and permits, and will help you prepare the documentation needed for your SVP rebate application. Call (408) 733-2000 for a free estimate, or book your appointment online in just a few clicks.
What Our Clients Are Saying
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2026-06-22 16:46:20
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2026-06-13 09:53:24
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2026-06-13 08:42:46
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2026-06-12 20:04:24
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2026-06-12 14:17:32
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2026-05-31 11:11:08
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2026-05-21 00:07:09
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2026-05-14 19:08:53
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2026-04-22 06:54:01
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2026-04-06 19:02:24
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2026-04-02 10:35:14
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2026-02-11 12:48:10
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2026-02-05 15:16:51
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2025-12-31 11:35:51
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2025-12-30 14:24:04
Mark handled my gas water heater replacement with a heat pump water heater. Mark is very professional and prompt handling my questions and installation… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=IdnR7UG_gDHf-YKgMFGV7Q&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
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2025-12-17 16:04:16
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2025-11-26 14:18:44
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2025-10-26 22:01:40
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2025-10-11 17:07:14
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2025-09-19 18:58:30
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2025-08-24 15:40:46
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2025-07-17 17:29:43
The good side is that Mark responded quickly and set up an appointment for the next day. The diagnostic price is the lowest of what I know of. Both the… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=VsincZU2RXKT–W2eecINw&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
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2025-07-12 14:38:42
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2025-06-04 19:04:52
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2025-06-04 15:10:01
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2025-05-29 14:08:07
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Mark C.
2025-05-27 17:47:37
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2025-05-13 14:12:41
It was that’s time that my air-conditioning system needed an upgrade, so I called my trusted company and they delivered an excellent job. System… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=KNerQa_EQuM-KzOq23_KWg&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
H. N.
2025-05-06 10:51:38
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Misha S.
2025-04-14 11:27:02
Best company I ever use in my life responding right away. Prices is the best and getting job done very well thank you. … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=MEi0ChlOVbfNhZmFgRzbzQ&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Gary
2025-02-13 18:28:07
we hired A&P Systems because we had a strong smell of gas when the heater came on. The technician Eugene, was on time and was very professional as he… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=Qb_V__sDOikBIRcytWK0eQ&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Jilong K.
2025-02-08 14:55:23
Great service and reasonable price. Highly recommended. They offer lower diagnostic fee for the first visit. … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=hOUHKGFe1Ia_5rcm4–RGA&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Yuankun X.
2025-01-17 20:20:03
Eugene is fantastic. Our furnace shut down all of sudden and stuck at lockout state, despite many resetting attempts. It was a Friday afternoon and hard to… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=MFQ7w0N9V32tqHLQZKxHFw&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Bosco F.
2024-12-17 11:34:35
I met Mark Fridlyland of Air & Plumbing Systems several years back in a “save energy” type of open house for contractors in Los Altos. I ended up using his… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=6azGfA3MBrn3jue8kli6CQ&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Aarthi R.
2024-11-15 19:23:50
Eugene was helpful in resolving our furnace issue. He responded quickly to our service request and was able to diagnose and fix the problem within an hour…. … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=7mc6qrJ_4btqRtjtrV7F7Q&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Bob R.
2024-11-02 08:50:38
I recently discovered that my furnace was 26 years old so I decided to replace it before winter. Since this summer was unusually hot I decided to add an… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=CiulK_zUvcgiylnvl0W9IA&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Alon M.
2024-10-01 16:37:12
Highly recommended! We hired A&P Systems to replace our duct system. They came in and did very professional work, in addition to a very reasonable price…. … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=KQHxjE5qnN_D1zzBGUKA5w&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Deanna C.
2024-07-06 11:59:18
I don’t write reviews often, but the exceptional response and service merits recognition since we really appreciate the fast online response and Eugene who… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=pVhLiH6z_ntY1Qpp1d83bA&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Yuting L.
2024-07-02 17:07:34
Very responsive and professional. I scheduled an appointment within 12hours. My ac problem got targeted and solved very quickly. Awesome experience. … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=oStmqS1EubNeL4vTMGOP5A&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Ruogu L.
2024-06-29 18:09:44
Contacted these guys in the afternoon, and they sent Caesar to my house in 1 hour. Caesar is knowledgeable and friendly, quickly identified the problem of… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=8X5yvAzm4HhoLc_oNuxwuw&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Tianwei X.
2024-06-24 12:04:14
Respond quickly and solve the issue immediately. The diagnostics fee is low, but not sure how the repair cost compares with others. … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=eivwK-zAMoA_UqnwEx_bvQ&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Robert
2024-06-23 21:05:39
Our AC broke down, but we got a working AC within 2.5 hours contacting them on a Sunday. Reasonable price, outstandingly fast response, I will definitely… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=pKNcmozFbeNN6C9SG94e0w&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Chris L.
2024-06-23 15:49:51
Heat wave and our AC stopped working! Late afternoon on a Sunday! And with two little ones in the home. Used Yelp to request estimates, A&P responded almost… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=9TJDrhN1o2V6W4F93NnmOg&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Conrad S.
2024-06-09 17:18:04
Fast response. Reasonable cost. Highly recommended. Would choose them again. Got our AC working very quickly. … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=Kvi601KnGeJlT520_GvvGA&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Rebecca E.
2024-06-05 20:49:00
My ac stopped producing cold air today, the hottest day of the year so far. I was able to get it fixed same day! I’m so grateful. Thank you. … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=OBySvhN-vySC19EItCgBCA&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Sina M.
2024-05-28 09:09:36
Fast response and summer inspection for our AC system. I highly recommend this service. … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=__4fvOFq7-PfBcmqHC_qHA&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Boris G.
2024-05-21 21:37:46
Installed ac with Air and Plumbing Systems, and it was the best experience I ever had with contracting services company. … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=gHbSMd_h-1DlmG6afYycfg&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Misha S.
2024-05-21 21:29:46
Those guys put the air condition for me in my house three or four years ago. They did the maintenance on it right now. I’m so happy they are great people. I… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=-xLcOTD8fkBV6BBkq9LqwA&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Shlomi G.
2024-05-05 13:33:06
I called Mark for help after my HVAC contractor failed to deliver. He was quick to respond and completed the work in a professional manner. I would… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=MlhIjZroG4R6YpTMi-gw9g&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Virginia N.
2024-04-12 12:57:50
I don’t write many reviews. However, I feel that when someone provides exceptional service and performance they should be recognized. Air and Plumbing are… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=Nkop9AdMpZ_zC6VTFJ9HUg&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Tim T.
2024-03-08 11:38:21
Worked with Mark to get my heat pump water heater installed to replace my gas water heater. Eduard came out and did a very professional job installing a 65… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=Xv9BLYdVdQJpJ135VHas9Q&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Kevin L.
2024-03-03 08:16:11
It took some back and firth and several visits, but we were able to get the attic fan issue resolved! … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=RGzI2vGup_SF-pAJyo1MzA&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Alan K.
2024-02-17 10:55:17
It was great working with Mark and his team. They provided a fair price. They arrived on time and were prepared for the job. On the day of inspection they… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=PFKuJePDxKYWu0wZkMz-tQ&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Tom J.
2024-01-28 14:31:22
I had a great experience with Air & Plumbing Systems Team on two different occasions. The company both installed a new water heater for my house and some… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=sm-zjf0VlUv3VayU2B6itw&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Kevin L.
2023-12-21 08:31:37
We contacted Air & Plumbing Systems about getting a heat pump water heater installed. In the process, we also wanted to get an electric car charger and… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=k8EiYkRlr6iycs1gSJM-8Q&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more
Malathy A.
2023-07-25 15:28:59
Our downstairs AC unit wasn’t functioning properly. It was very easy to schedule a service.The tech showed up on time and gave us the diagnosis. The AC… … href=”https://www.yelp.com/biz/air-and-plumbing-systems-campbell?adjust_creative=xkMcQAESVeJow5Jo28zSjQ&hrid=nJZaZbmuiQIWcqcZ5dBTSQ&utm_campaign=yelp_api_v3&utm_medium=api_v3_business_reviews&utm_source=xkMcQAESVeJow5Jo28zSjQ” target=”_blank” rel=”noopener”>read moreread more