What Pasadena Water and Power pays
These figures come from PWP's heat pump water heater page, which we read on October 2, 2026. Only residential PWP electric customers qualify.
Base rebate
For a new ENERGY STAR certified electric heat pump water heater.
Bought in Pasadena
Added when you buy the unit from a seller in Pasadena.
Limit
One rebate per customer every 10 years.
What you actually receive
$500, or $520 if you buy locally. That covers a small share of the job, so the case for switching rests on the lower running cost and on getting a gas appliance out of the house. PWP's page quotes the Department of Energy saying a heat pump water heater can cost less to run than a gas tank even where gas is cheaper per unit, but your own bills decide that, not the page.
How Pasadena compares with Glendale, Burbank and Los Angeles
Glendale pays $4,000, but only when the heater replaces a gas water heater (see Glendale water heater rebates). Burbank pays $1,500 for a gas replacement. LADWP pays up to $2,500 in Los Angeles. Pasadena pays the least of the four, and it is the only one of them whose page does not tie the amount to removing gas.
The practical result: if you are swapping a worn-out electric tank for a heat pump model, PWP will pay and Glendale or Burbank would not. If you are leaving gas behind, you give up a lot of money compared with those cities, and that is a fair thing to know before you sign a quote.
Your utility: Pasadena Water and Power
PWP is the city's own electric utility and it runs this rebate. It is for residential PWP electric customers only, so look at the name on your electric bill. A heat pump water heater draws power in the background all day, so it is worth asking PWP's customer line how it will sit on your rate. PWP lists its other programs on its residential rebates page, and its assistance programs are separate.
Where the unit goes matters more than the brand
A heat pump water heater cools and dries the air around it while it works, and it needs room to breathe. Tight closets, small utility rooms and very hot garages are where homeowners tend to run into trouble. Ask your installer for the model's allowed room temperature range and the clearance it needs, and ask where the condensate drain will run. These tanks are usually taller than a standard gas tank, so measure the ceiling height before you order.
Noise is the other common question. Models differ, and some are louder than others. Ask to hear one running, or ask the installer for a model they have fitted in a similar space.
What the City needs from you
A water heater swap normally needs a City of Pasadena permit. Applications go through the Permit Center at 175 North Garfield Avenue. Ask your installer who pulls it and whether the quote includes it. PWP can check the installation when it reviews your rebate, so the model on the invoice has to match what is on the wall.
The federal credit and state programs
PWP's page still mentions a federal tax credit of up to $300 for an ENERGY STAR heat pump water heater. That credit ended for spending after December 31, 2025, so it does not apply to a 2026 install. State help through TECH Clean California and the federal HEEHRA program is fully reserved and takes new requests on hold only.
Installers in Pasadena
Plumbers and HVAC companies both fit heat pump water heaters. These Pasadena-area companies have the best Google ratings, listed by rating and then review count. We are not paid to list anyone, and not every company on the list does water heaters, so ask first.
How to claim the PWP rebate
- Check that PWP is your electric utility. The name is on your electric bill.
- Choose an ENERGY STAR certified electric heat pump water heater and keep the specification sheet and the EnergyGuide label.
- Have it installed with a City of Pasadena permit. PWP pays after the install, so nothing needs approval first.
- Log in to your PWP account and choose Apply for Rebate. Upload the paid invoice with the model number, purchase and install dates, the specification sheet and the ENERGY STAR proof.
- Apply within 180 days of the purchase date.
- PWP says the check arrives 6 to 8 weeks after approval.
Common questions
How much is the heat pump water heater rebate in Pasadena?
PWP pays $500, or $520 if you buy the unit in Pasadena. The unit must be ENERGY STAR certified and PWP limits it to one rebate per customer every 10 years.
Does the old water heater have to be gas?
PWP's page does not say so. Glendale and Burbank do require a gas replacement for their larger rebates, which is a real difference if you are replacing an electric tank.
Do I need PWP's approval before the install?
No. PWP pays after the install and you apply within 180 days of buying the unit. The City permit is separate.
Will it fit in my garage or closet?
Often, but check. The unit needs air around it and a drain, and very hot or very tight spaces cause problems. Ask your installer for the model's temperature range and clearance.
Can I still claim the federal tax credit?
Not for a 2026 install. The 25C credit ended for spending after December 31, 2025, even though PWP's page still mentions it.
What to do next
See PWP's own water heater rebate page for the current paperwork, or compare everything on offer at our Pasadena hub. If you are also replacing heating, see Pasadena heat pump rebates.
By Sam Menard. Sources, last read September 28, 2026: PWP heat pump water heater rebate, PWP residential rebates and programs, PWP assistance programs, City of Pasadena Permit Center. All Pasadena rebates → Every Pasadena Water and Power rebate →