Water heater up to $4,000

San Jose Clean Energy EcoHome Rebates

San Jose Clean Energy's EcoHome program pays $3,000 for a heat pump water heater and $1,500 for a heat pump HVAC system, with add-ons for insulation and electrical work. The rebate must be approved before you install, and the old battery rebate is closed.

What EcoHome pays in 2026

We read San Jose Clean Energy's pages on October 1, 2026. Higher amounts apply in environmental justice communities. Each card names the fact with the date and a source link.

Open

Heat pump water heater

$3,000, or $4,000 in EJ communities

Includes a $500 bonus for applications from September 1 to October 31, 2026. Must replace a gas appliance, and the rebate must be approved before install.

Open

Heat pump HVAC

$1,500, or $2,500 in EJ communities

Must replace a gas appliance, with rebate approved before install.

Open

Attic insulation add-on

$0.75 per sq ft, up to $700

Up to $1,000 in EJ communities. Must be paired with a heat pump HVAC rebate.

Open

Panel and circuit add-ons

Panel $1,000, circuits $500 each

EJ communities: panel up to $2,000, circuits $750 each. Requires a heat pump HVAC or water heater.

Open

Battery storage

Closed

$125 per kWh up to $3,250 for applications submitted before July 1. Closed to new applications.

Who SJCE serves

San Jose Clean Energy buys and sells clean electricity for San Jose residents, while PG&E still delivers it. A San Jose address usually means SJCE, but check your bill. SJCE's rebates apply to SJCE customers only. Oakland, Berkeley and Fremont use a different clean energy provider and are not covered here.

Approval comes first

The most common mistake is buying before the rebate is approved. SJCE asks for approval before installation, so get the rebate reserved, then book the work. Ask any contractor how they handle the reservation before you sign. The rebate also requires that the new equipment replace a gas appliance, so it does not cover electric-to-electric swaps.

A worked example

A San Jose house outside an environmental justice community replaces a gas water heater and a gas furnace. The heat pump water heater earns $3,000, including the $500 bonus while it lasts, and the heat pump HVAC earns $1,500, so $4,500 together. Add a $1,000 panel upgrade and 1,000 square feet of attic insulation at $0.75, which is $700 under the cap, and the full project reaches $6,200. In an environmental justice community the same job earns more on every line. These sums use SJCE's published amounts, and each item has its own conditions.

Stacking the add-ons

Insulation, panel and circuit add-ons are only available with a heat pump HVAC or water heater rebate. A heat pump water heater at $3,000 plus a $1,000 panel upgrade is $4,000. Add attic insulation, which needs a heat pump HVAC rebate, and a full house project can reach several thousand dollars more. Each add-on has its own rules, so read the page for the item before you sign a contract.

What SJCE does not pay

The battery rebate closed to new applications for anything submitted on or after July 1. We found no SJCE rebate for rooftop solar. State and federal money adds little in 2026. TECH Clean California lists its single-family funds as reserved, the federal home electrification rebates are on hold, and the federal 25C and 25D credits ended after December 31, 2025.

How to claim an EcoHome rebate

  1. Confirm your account is with San Jose Clean Energy.
  2. Choose the equipment and a contractor, then apply to reserve the rebate.
  3. Wait for approval before any installation begins.
  4. Install the equipment to replace a gas appliance.
  5. Submit your final documents and wait for payment.

Our pages for San Jose Clean Energy customers

Guides

Common questions

How much does San Jose Clean Energy pay for a heat pump water heater?

$3,000, or $4,000 in environmental justice communities, with a $500 bonus for applications from September 1 to October 31, 2026.

Can I install first and apply later?

No. SJCE asks that the rebate be approved before installation.

Is the battery rebate still open?

No. It closed to new applications.

Does it cover replacing an electric appliance?

No. The new equipment must replace a gas appliance.

Can I get the insulation add-on alone?

No. It must be paired with a heat pump HVAC rebate.

By Sam Menard. Sources, last read October 1, 2026: SJCE EcoHome rebate, TECH Clean California incentives, IRS energy-efficient home improvement credit, San Jose Clean Energy. All rebate programs →

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