HVAC in Santa Clara, California
What does Silicon Valley Power pay for a heat pump?
When a heat pump replaces a gas furnace, $3,000 per ton up to $10,000. Santa Clara has its own city-owned utility and its own rebate rules. The rules, the photos to take, and the permits.
On file for Santa Clara
The city utility's rebate, step by step
On file, last checked 2026-10-22
Read next
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Rebate
How much is the Silicon Valley Power rebate?
For a gas furnace replacement, $3,000 per ton up to $10,000; for an electric resistance replacement, $1,000 per system.
The heat pump must meet a minimum of 16 SEER2 and 8.0 HSPF2, and dual-fuel systems with gas heat as backup do not qualify.
Source: Silicon Valley Power, Residential Heat Pump HVAC Rebate Rules. Rules and programs change: last checked 2026-10-22.
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Photos
What should I photograph before the old furnace goes?
The furnace in place, and its nameplate. Silicon Valley Power requires a before photo of the furnace in place, the previous furnace nameplate photo, and an after photo of the installed heat pump. Take them before removal day.
Source: Silicon Valley Power, Residential Heat Pump HVAC Rebate Rules. Rules and programs change: last checked 2026-10-22.
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Deadline
When is the rebate application due?
Within 60 days of the building permit final date. The system must be installed by a licensed contractor: DIY installs are not eligible, and neither is new construction.
Source: Silicon Valley Power, Residential Heat Pump HVAC Rebate Rules. Rules and programs change: last checked 2026-10-22.
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Permit
Is there a quick permit for a like-for-like swap?
Yes: Building Simple Permits, for limited like-for-like projects at single-family dwellings, duplexes and ADUs only. Townhomes, apartments and condos are not eligible.
If you're unsure which inspections the job needs, the city's inspection line will say.
Source: City of Santa Clara, Simple Permits. Rules and programs change: last checked 2026-10-17.
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Reach code
Must a gas furnace be replaced with electric in Santa Clara?
No. Under the city's Reach Code you do not need to replace existing gas appliances with an electric appliance.
Source: City of Santa Clara, Reach Code. Rules and programs change: last checked 2026-10-17.
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The Peninsula line
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Tell us what it's doing. We'll take it from there.
Call and describe the problem: the noise, the smell, the room that never warms up. Or book a visit online.
