From July 1 through October 31, 2026, the City of Palo Alto offers an extra $500 off a new heat pump water heater. To qualify, residents must sign a project contract or reserve a rebate by October 31, 2026. The discount stacks with existing City rebates and applies to projects through Electrify My Home, Emergency Replacement & Fast service, or self-managed projects through the Rebate Hub.
The offer
The City of Palo Alto announced on July 1, 2026 that residents can save an extra $500 on a new heat pump water heater. The discount is applied automatically, can be combined with existing City rebates and incentives, and is paid after the water heater is installed.
| Detail | What the City says |
|---|---|
| Amount | Extra $500 off |
| Deadline | Sign a contract or reserve a rebate by October 31, 2026 |
| Eligible paths | Electrify My Home, Emergency Replacement & Fast, Rebate Hub (self-managed) |
| Stacks with rebates | Yes |
| Fast service price | Starts at $2,100 with the $500 included; weekends cost extra |
Why it matters now
Palo Alto’s gas rate rose 9% on July 1, 2026, about twice the 4.5% electric increase (details). Water heating is one of the largest gas loads in a typical home, and the Bay Area Air Quality Management District’s zero-NOx rule for new water heaters takes effect in 2027. Switching now captures the extra $500 before it ends.
How to make the deadline
- Call 650-460-3483 for a site visit; we check space, airflow, drain and electrical capacity
- Get a written quote showing the City rebate
- Sign the contract or reserve your rebate before October 31, 2026
See heat pump water heater installation and our CPAU rebate guide.
Sources
Published by the ComfortFlow HVAC Palo Alto team. Event date: .