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Mountain View residents looking to replace their gas water heaters may have more time to take advantage of city rebates after the Mountain View City Council approved an additional $500,00 for the city’s heat pump water heater rebate program.
The council unanimously approved the funding increase during its June 9 meeting as part of the consent calendar, a group of items passed together without a separate debate. The amendment raises the city’s agreement with Silicon Valley Clean Energy from $500,00 to $1 million and is expected to allow the city to fund about 500 heat pump water heater installations, compared with about 250 under the original budget, according to the city staff report.
The program is part of Mountain View’s “Year of the Water Heater” campaign, which launched at the city’s Earth and Arbor Day Celebration in April 2025. Through the program, Mountain View offers residents a $2,000 rebate to replace gas-fired water heaters with electric heat pump water heaters. Silicon Valley Clean Energy administers the rebate program on the city’s behalf.
Residents can apply for the rebate through Silicon Valley Clean Energy’s Home Rebates program. Mountain View residents do not need to complete a separate city application to receive the city’s added rebate; the extra city rebate is applied through Silicon Valley Clean Energy’s standard rebate application. Residents can also enroll in the Assisted Home Upgrade program if they want additional help applying for rebates or connecting with experienced contractors. Income-qualified residents may be eligible for additional Silicon Valley Clean Energy incentives, according to the city’s rebate table.
To begin the process, residents can apply through Silicon Valley Clean Energy. The city says applicants should have their PG&E account number, a photo of their existing water heater and the water heater’s capacity in gallons ready before applying. The city also advises residents with older or failing water heaters to plan ahead, since many water heaters are replaced during emergencies.
City staff described the funding increase as part of Mountain View’s climate and electrification efforts and as a way to prepare residents for Bay Area Air District Regulation 9 Rule 6, which will require newly installed residential water heaters to meet zero nitrogen oxide emissions standards starting Jan. 1, 2027.
Water heaters account for a major share of natural gas used in buildings, and buildings make up 22% of Mountain View’s greenhouse gas emissions, according to the city staff report. Staff wrote that switching from gas water heaters to electric heat pump water heaters can reduce building emissions because Silicon Valley Clean Energy provides lower- or no-emission electricity.
Councilmember Pat Showalter briefly praised the item before moving the consent calendar during a Mountain View City Council meeting on June 9, 2026 .
“On a very happy note, we are putting more money into the heat pump rebate program,” she said. “It was so popular that we used up all the money.”
Showalter also said the additional funding would allow the city to support more heat pump installations in Mountain View and called the greenhouse gas reductions “something to be proud of.”
The rebate program has seen increased participation since the city launched its campaign. Before Mountain View began offering its rebate, Silicon Valley Clean Energy averaged nine heat pump water heater rebates per month in the city, according to the city staff report. After the city began its education campaign and rebate initiative, that number rose to 25 rebates per month.
Currently, 121 heat pump water heaters have been installed through the program; 25 additional installations are in progress; and 67 customers have expressed interest through a city interest list, according to the city staff report.
The rebates are intended to offset the higher upfront cost of switching to electric. Replacing a gas water heater with a 65- to 80-gallon heat pump model costs an average of $6,400, compared with $2,250 for a gas model of the same size, according to the city staff report.
Silicon Valley Clean Energy recently increased its own heat pump water heater rebate from $2,000 to $2,500 and offered a temporary increase to $3,000 for rebate reservations made in May and June. Combined with Mountain View’s rebate, residents could receive $5,000 for May and June reservations and $4,500 afterwards, enough to cover the average cost difference, according to city staff.
The additional $500,000 will come from Project 20-99, the city’s Sustainability Action Plan 4 “Sustainability Fund,” according to the city staff report. Staff said no additional appropriation is required.
The city has also leaned heavily on public outreach to encourage residents to make the switch. Staff reported using targeted mailers to homes with older water heaters, outreach in Mandarin and Spanish, a “Wattson” heat pump water heater character and a water heating “Dating Game” to help residents prepare for water heater replacements.
If the city had not added funding, the program would have continued only until the original $500,000 was exhausted, which staff said would likely happen before the end of 2026. With the expansion, staff expects funding to last through the end of the year, although the exact timeline will depend on demand.
For now, the expanded rebate program gives Mountain View residents more time to make the switch before the 2027 rules take effect. The next phase could focus on low-income residents, small businesses and mobile home park communities — groups the staff report says may face challenges transitioning to electric heat pumps.
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Like the article says, don’t wait until your old heater is broken. If you are a little handy, order a 120V/80Gal model from one of the big box stores. They’ll deliver for free. The 120V model plugs into a regular outlet and doesn’t consume much more than a small freezer. The hookup is straight forward. Schedule Recology for a free pickup of the old water heater and save yourself a bundle.
Of course the article ASSUMES you already have electricity where the gas water heater is today. If not, it’s going to cost more. And if your house was built before 1980 with only 100 amp service and underground utilities… Yea, a lot more!
Not sure where you get your data from… The model I have plugs into a regular outlet. Even with your older house and 100A service, you have probably switched over to LED lighting, and your savings from those will more than make up for the additional heat pump load.
Thank you, City of MV! We have installed a heat pump water heater and heat pump HVAC system in our 1940s era house with a 100 Amp panel and participate in a program that gives us data on our maximum 15-minute electric load over the past 12 months. That maximum is 43 Amps. “You’ll need a service panel upgrade” is nonsense for most homes like ours.