SVCE Partners With Four South Bay Cities for New Heat Pump Rebates
Silicon Valley Clean Energy (SVCE) has announced a new city partnership program that adds exclusive rebates for residents of Milpitas, Mountain View, Sunnyvale, and Los Altos who switch to electric heat pump systems. These city-funded rebates stack on top of SVCE’s existing Home Rebates program, creating some of the most generous incentive packages available anywhere in the Bay Area.
The bottom line: A Milpitas homeowner replacing both their HVAC system and water heater with heat pump models can receive up to $2,850 from this program alone—before adding federal tax credits or state incentives.
This article covers every detail you need to understand the rebate amounts, eligibility, application process, and what to watch out for in each city.

City-by-City Rebate Breakdown
Milpitas — Available Now
Milpitas residents have the most complete rebate package in the program and can claim it today:
| Equipment | Rebate Amount |
|---|---|
| Heat Pump HVAC System | $2,000 |
| Heat Pump Water Heater | $850 |
| Induction Cooktop / Range | $500 |
| Panel Upgrade | $250 |
Milpitas is the only city in this program offering rebates across all four equipment categories. This means a full home electrification project—new HVAC, water heater, stove, and panel—could receive $3,600 from this program before any other incentives.
Mountain View — Starting March 12, 2026
Mountain View’s partnership focuses exclusively on heat pump water heaters:
| Equipment | Rebate Amount |
|---|---|
| Heat Pump Water Heater | $500 – $2,000 |
The rebate range reflects income qualification—standard-income customers receive $500, while income-qualifying households receive up to $2,000. Only applications approved after the March 12, 2026 launch date are eligible.
Sunnyvale — Starting March 16, 2026
Sunnyvale’s partnership focuses on heat pump HVAC systems:
| Equipment | Rebate Amount |
|---|---|
| Heat Pump HVAC System | $1,000 – $1,500 |
Again, income-qualifying customers access the higher $1,500 tier. Applications must be approved after March 16, 2026 to qualify.
Los Altos — Starting March 16, 2026
Los Altos offers rebates on both major categories:
| Equipment | Rebate Amount |
|---|---|
| Heat Pump HVAC System | $1,000 |
| Heat Pump Water Heater | $1,000 |
Important: Los Altos operates under a different process than the other three cities. Read the section below carefully before planning your project.
Key Program Rules to Understand
Income Qualification
Higher rebate amounts in Mountain View and Sunnyvale are reserved for income-qualifying customers. SVCE uses the same income qualification criteria as their standard Home Rebates program. Visit svcleanenergy.org/home-rebates to check income limits by household size.
Launch Date Requirement
For Mountain View, Sunnyvale, and Los Altos, only applications approved after the city’s launch date count for the additional rebate. Installing equipment before the launch date and applying afterward still qualifies—what matters is when SVCE approves the application.
Application Process
SVCE customers in Milpitas, Mountain View, and Sunnyvale do not need to do anything extra. The city partnership rebates are automatically included in the standard SVCE Home Rebates application. No additional forms, no separate submission.

Special Rules for Los Altos Customers
Los Altos has a limited budget for its supplementary rebates, so SVCE is using a modified administration process. There are three things Los Altos residents need to know:
-
Rebates cannot be reserved in advance. Unlike the other cities, you cannot secure a Los Altos rebate before installation. The rebate is only confirmed after SVCE approves your post-installation claim form.
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First-come, first-served until funds run out. Once the Los Altos rebate budget is exhausted, no more rebates will be issued. Early applicants have an advantage.
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Not visible on Assisted Home Upgrades platform. If you’re using the Assisted Home Upgrades platform to manage your project, the Los Altos rebate won’t appear in your dashboard. However, you can still receive it after your claim is approved through the standard process.
Our recommendation for Los Altos residents: Don’t wait for March 16. Get your heat pump installation scheduled now so you’re ready to submit your claim form the moment the program opens.
How These Rebates Stack With Other Incentives
These city partnership rebates are additive—they combine with other available incentives:
TECH Clean California (for income-qualifying households):
- Up to $8,000 for heat pump HVAC upgrades
SVCE Standard Home Rebates:
- Heat pump HVAC: Up to $3,000 (check current SVCE program for exact amount)
- Heat pump water heater: Additional rebates through standard program
Example: Milpitas Homeowner Replacing HVAC + Water Heater
| Incentive Source | Amount |
|---|---|
| SVCE City Partnership – HP HVAC | $2,000 |
| SVCE City Partnership – HPWH | $850 |
| SVCE Standard Home Rebates | varies |
| TECH Clean California (if income-qualifying) | up to $8,000 |
| Estimated Total Incentives | $2,850–$10,850+ |
Income-qualifying Milpitas residents who also access TECH Clean California could receive significantly more.
Why Heat Pumps Make Sense for South Bay Homes
The South Bay cities in this program—Milpitas, Mountain View, Sunnyvale, Los Altos—have a climate that’s ideal for heat pump performance. Winters rarely see extended freezing temperatures, and modern cold-climate heat pumps like the Carrier Performance series operate efficiently down to 0°F.
South Bay homes also benefit from PG&E time-of-use rates, where heat pumps can shift their heaviest load to off-peak hours for additional savings. Over a 15-year lifespan, a heat pump system typically saves South Bay homeowners $2,000–$4,000 compared to gas furnace operation—before accounting for rising natural gas prices.
How to Get Started
- Verify SVCE service area: Confirm your address is in the SVCE service territory at svcleanenergy.org
- Check income qualification: If you may qualify for higher rebate tiers, review the income limits before applying
- Schedule your installation: Contact a licensed HVAC contractor who is familiar with the SVCE rebate application process
- Submit your application: Complete the SVCE Home Rebates application—city partnership rebates are included automatically (except for Los Altos, which requires post-installation approval)
Bay Area Climate Control serves all four cities in this program. We’re familiar with the SVCE rebate application process and can help you maximize every available incentive.
Contact us for a free estimate or call to discuss which heat pump system qualifies for these rebates.
Rebate information is based on SVCE communications as of March 2026. Rebate amounts, eligibility, and availability are subject to change. Always verify current rebate details directly at svcleanenergy.org/home-rebates before making purchasing decisions.