What San Jose Clean Energy pays
These figures come from the EcoHome Rebate page of San Jose Clean Energy (SJCE), which we read on October 1, 2026. You must be a current SJCE customer, and the system must replace an existing gas-powered heating system.
Heat pump HVAC
Standard rebate for replacing a gas system.
Environmental Justice community
Based on an address map or on enrollment in CARE, FERA, SJ CARES or another income-based program.
Panel upgrade
$2,000 in Environmental Justice communities. Only with a heat pump HVAC or water heater.
Attic insulation
Up to $700 ($1,000 in an EJ community). Must be paired with a heat pump HVAC rebate.
What a typical project can add up to
A heat pump HVAC system ($1,500), a panel upgrade ($1,000) and attic insulation ($700 at the 1,000 square foot cap) come to $3,200 in rebates on one project. In an Environmental Justice community the same project can reach $5,500: $2,500 + $2,000 + $1,000. Each add-on needs the heat pump to go in first or alongside it.
A flat rebate changes how you shop
Most Los Angeles-area utilities pay by the ton, so a larger system earns more. SJCE pays one amount, so there is no reason to buy a bigger unit for the rebate, and a small home can earn as much as a large one. Put your effort into the right size and into the add-ons that stack on top, namely the panel upgrade and the attic insulation.
Reserve first, then install
You apply and wait for approval before installation begins. SJCE emails a confirmation within 2 to 4 business days and, if approved, holds the funds for 120 days. For an emergency replacement, email [email protected] before applying to confirm you can still qualify. Ask your installer to schedule the work after you hold the confirmation, and to start the permit in the meantime.
Permits in San Jose
The City treats duct, furnace and other mechanical equipment replacement as mechanical work that needs a mechanical permit, with an online option for some single-family and duplex properties through SJPermits.org. See the City's mechanical projects page. The Permit Center is at 200 E Santa Clara Street, and its phone number is (408) 535-3555. Insurers can deny claims tied to unpermitted work, so do not skip the permit.
Your utility: San Jose Clean Energy
SJCE's flat $1,500 is much lower than Glendale's $1,000 per ton up to $5,000 (Glendale) or LADWP's tiers (Los Angeles), but it comes with the panel and insulation add-ons and with a payment plan for the upfront cost. SJCE's EcoHome Payment Plan and its Go Electric Advisor can help you plan. San Jose's average January low over 2015 to 2024 was 6.7°C (about 44°F), with a coldest recorded day of -1.3°C, so a standard heat pump heats the house, and cooling matters in summer.
Other money
BayREN's EASE Home program helps income-qualified PG&E customers in Santa Clara County with weatherization (BayREN). The federal 25C and 25D tax credits ended after December 31, 2025. TECH Clean California and the federal HEEHRA program for single-family homes are fully reserved and take new requests on hold only.
Installers in San Jose
These San Jose heat pump and HVAC companies have the best Google ratings, listed by rating and then review count. We are not paid to list anyone. SJCE keeps a contractor list, so ask whether your installer takes part.
How to claim the SJCE rebate
- Confirm that you are a current SJCE customer and that the system replaces gas heating.
- Check whether you are in an Environmental Justice community or on CARE, FERA or SJ CARES.
- Apply on the EcoHome Rebate page, with a photo of your existing equipment and agreement to the Applicant Agreement.
- Wait for the confirmation email, which SJCE sends within 2 to 4 business days. Funds are held for 120 days.
- Install under a City mechanical permit, and add the panel and attic insulation rebates if they are part of the job.
- Submit your claim within the 120 days.
Common questions
How much does SJCE pay for a heat pump?
$1,500, or $2,500 in an Environmental Justice community. It is a flat amount, not per ton.
Can I add other rebates?
Yes. Add-ons for a panel upgrade ($1,000, or $2,000 in an EJ community) and attic insulation ($0.75 per square foot, capped) need a heat pump HVAC or water heater.
When do I apply?
Before installation. SJCE must approve the application first, and approved funds are held for 120 days.
Does the old system have to run on gas?
Yes. The new heat pump must replace an existing gas-powered appliance.
Is there help with the upfront cost?
SJCE offers an EcoHome Payment Plan, and its Go Electric Advisor can help assess your needs.
What to do next
See SJCE's EcoHome Rebate page, or compare all San Jose offers on our San Jose hub. For hot water, read San Jose water heater rebates.
By Sam Menard. Sources, last read October 1, 2026: San Jose Clean Energy EcoHome Rebate, City of San Jose mechanical permits, San Jose Clean Energy EcoHome Payment Plan, BayREN EASE Home. All San Jose rebates → Every San Jose Clean Energy rebate →