Up to $1,200 in bill credits

Heat Pump Water Heater Rebates in San Francisco

CleanPowerSF pays up to $1,200 for a heat pump water heater, but not as a cheque. It arrives as $50 off your electric bill each month for 24 months, and you have to be on an electrification rate to receive it.

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What CleanPowerSF pays

These figures come from CleanPowerSF's Electrify Your Home page, which we read on October 2, 2026. You must be a residential CleanPowerSF customer, and the heater must have been installed on or after March 15, 2025.

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Heat pump water heater

Up to $1,200

$50 a month in bill credits for 24 months.

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CARE or FERA customers

+12 months ($600)

An automatic bonus of 12 more months of credits when you apply, for a total of $1,800 over 36 months.

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Rate requirement

EV2-A or E-ELEC

Customers seeking hot water or heating credits must enroll in an electrification rate such as EV2-A or E-ELEC.

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Gas meter removal

+$300

An extra credit when you electrify everything and remove the gas meter, for removals on or after April 14, 2026.

How the credits work

The credit comes off your CleanPowerSF bill, so it lowers what you pay each month and does not arrive as one payment. 24 months x $50 = $1,200. If you move before the credits are used up, you stop receiving them, so the program suits people who plan to stay. A CARE or FERA customer gets 36 months of credits, which is $1,800 in total.

The electric rate is part of the deal

CleanPowerSF says to get your account on the right electric rate and set the new appliance to avoid peak usage times where that applies. For hot water and heating credits, you must enroll in an electrification rate such as EV2-A or E-ELEC. These rates charge less at off-peak hours, which is when a modern heat pump water heater shifts its work, so the two fit together. Email CleanPowerSF for help choosing, and check how the rate treats the rest of your household before you switch.

Permits and the contractor

CleanPowerSF asks you to comply with the Department of Building Inspection's permit requirements. The City takes plumbing and mechanical permits on PermitSF, and contractors need one of the listed licenses (C4, C16, C20, C36, C54, B or A) to apply for them, with the permit scope limited by license type. Ask your installer to pull the permit and to have the work inspected before pipes are covered. CleanPowerSF recommends a licensed, insured contractor for every upgrade, and keeps an Active Contractors List.

Approved products only

CleanPowerSF publishes an approved products list as a spreadsheet, last dated September 3, 2026 on the page we read. Check your model against it before you buy, and ask your installer to confirm it in writing. Credits depend on the model qualifying, so a unit that is not on the list could earn nothing.

Your utility: CleanPowerSF

CleanPowerSF is San Francisco's city-run electricity supplier, operated by the SFPUC, and it runs these credits. Its credit of up to $1,200 is smaller than Glendale's $4,000 cash check (Glendale) but larger than Pasadena's $500 (Pasadena). San Francisco's average January low over 2015 to 2024 was 7.8°C (about 46°F), so a garage or basement rarely gets too cold for the unit.

Other money

BayREN's EASE Home program, for income-qualified PG&E customers, helps with weatherization and applications (BayREN EASE Home). The federal 25C and 25D tax credits ended after December 31, 2025. Single-family state programs are fully reserved and take new requests on hold only.

Installers in San Francisco

HVAC and plumbing companies in San Francisco both fit these units. These have the best Google ratings, listed by rating and then review count. We are not paid to list anyone, and not every company does water heaters, so ask first.

Heating And Air Experts
★ 5.0 (804 reviews)
Visit site →
Freon HVAC & Electrical Service - San Francisco
★ 5.0 (35 reviews)
Visit site →
Acosta Heating & Sheet Metal
★ 5.0 (20 reviews)
Visit site →
Magic Plumbing Heating & Cooling
★ 4.9 (1,928 reviews)
Visit site →
Heise's Plumbing
★ 4.9 (1,751 reviews)
Visit site →

See all San Francisco installers →

How to claim the CleanPowerSF credits

  1. Confirm that CleanPowerSF supplies your electricity.
  2. Enroll your account in an electrification rate such as EV2-A or E-ELEC.
  3. Choose a model from CleanPowerSF's approved products list.
  4. Have it installed under a Department of Building Inspection permit, by a licensed contractor.
  5. Complete CleanPowerSF's online application for bill credits.
  6. Receive $50 a month for 24 months, plus 12 more months if you are on CARE or FERA.

Common questions

How much does CleanPowerSF pay for a heat pump water heater?

Up to $1,200 in bill credits, $50 a month for 24 months, for installs on or after March 15, 2025. CARE and FERA customers get 12 more months.

Is it a cheque?

No. The money comes off your CleanPowerSF bill as monthly credits.

Do I need a special rate?

Yes. For hot water and heating credits you must enroll in an electrification rate such as EV2-A or E-ELEC.

Does the credit follow me if I move?

No. Credits stop if you move from the address.

Do I need a permit?

You must comply with the Department of Building Inspection's permit requirements, and plumbing and mechanical permits are issued through PermitSF.

What to do next

See CleanPowerSF's Electrify Your Home page for the application, or compare all San Francisco offers on our San Francisco hub.

By Sam Menard. Sources, last read October 2, 2026: CleanPowerSF Electrify Your Home, City of San Francisco plumbing and mechanical permits, CleanPowerSF programs and rebates for residents, BayREN EASE Home. All San Francisco rebates → Every CleanPowerSF rebate →

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