Same Hot Water for Less Money
Benefits:
- Healthier living spaces
- More energy efficient and climate smart
- Incentives to lower installation costs
How it Works
Heat pump water heaters move heat rather than make heat. They’re like reverse refrigerators. While a refrigerator pulls heat from inside a box and dumps it into the surrounding room, a heat pump water heater pulls heat from the surrounding air and transfers it at a higher temperature into the tank to heat your water.
Heat pump water heaters are three (3) times more energy efficient than gas water heaters because they move heat while gas water heaters create heat via combustion. They also typically last 13-15 years while conventional water heaters need to be replaced every 8-12 years. They can help customers avoid peak energy charges by heating water during parts of the day with lower electricity prices and keeping that warm water stored until it is needed.
Project Costs and Bill Savings
The average project in San Jose (including equipment, installation, and permits) costs about $5,700-7,800 before incentives. Switching to a heat pump water heater also has the benefit of bill savings. A study of bill impacts of home electrification found annual bill savings of $251-$369 dollars a year from using a heat pump water heater instead of a new gas water heater.
Heat pump water heaters can also help customers avoid peak energy charges. They can heat your water during parts of the day with lower electricity prices and keep that warm water stored until it is needed.
Tools and Incentives
Go Electric Advisor
Need help figuring out where to start? Our team of friendly, trained advisors are here for you. They’ll answer your questions, connect you with incentives, review project quotes, and guide you through every step.
EcoHome Rebate
We are offering exclusive customer rebates when you:
- Replace your gas water heater with a heat pump water heater
- Replace your gas-powered heating system with a heat pump alternative
- Add battery storage to your solar system
Whether you’re a homeowner or renter, SJCE is here to help you save on equipment and installation costs to electrify your home.
Plus, get help with the upfront costs of installing electric heat pumps with the EcoHome Payment Plan. The Payment Plan is interest-free, with no-money down, and repaid on your monthly electric bill.
Learn more about the rebate and payment plan and see if you qualify.
Discover More Incentives
Use our Incentives Finder to discover more rebates and programs that can help lower your upfront costs.
Permits and Installation Considerations
Permits
Information on online permit submittals is available from Planning, Building & Code Enforcement. Currently online permit submittals are only allowed for single-family residences. For multi-family and non-residential, please use the Development Services Application Wizard and select “Building”. The following selections will vary depending on your project type. Once you have completed your selection, hit return to login.
At this point, if you have previously applied for permits through sjpermits.org, please log in using your account and proceed.
If you are a contractor who has not previously applied through sjpermits.org, please choose option 1 to create an account. Additional fees may be required to register for a San Jose Business Tax Certificate if you do not previously have one.
If you are a homeowner, you may choose option 2 and follow instructions.
Installation Location
The Northwest Energy Efficiency Alliance (NEEA) sets forth specifications for heat pump water heaters. Heat pump water heaters that comply with NEEA’s Advanced Water Heater Specification of Tier 3 or higher may be located in a garage, basement, or other conditioned space.
- Heat pump water heaters draw air from the room to heat the water. The space or room must be at least 10x10x7 (700 cubic feet) or, if the room is smaller, there must be a door with a louvered panel with the panel at least 2’ x 3’ in size, to allow air to freely pass into the room. This also applies to accessory dwelling units (ADUs).
- Condensate must drain to an approved plumbing fixture or to a drywell.
- If the existing electrical service panel is not adequate for the added load, please see Bulletin #260 on Electrical Service Panel Upgrades
Finding a Contractor
We recommend residents follow these best practices when selecting any contractor, including contractors provided on the list below.
- Check licenses with the California Contractors State License Board
- Check complaints and litigation history with the Better Business Bureau
- Interview and request quotes from at least 3 contractors
- Ask for three references who can speak to the quality of services provided
Vetted Contractor List
Contact information for contractors who have installed three or more appliances through the EcoHome Rebate program can be found listed on the EcoHome Network. The City does not endorse or recommend any particular vendor.
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