Heat Pump Water Heater Installation in Milpitas, CA

What does a heat pump water heater save?

It saves energy. As of November 2026, PG&E’s building electrification page says heat pump water heaters use about 70% less energy to heat water than standard water heaters. How much that changes your bill depends on your current water heater, how much hot water you use and your electric rate plan. A heat pump water heater works like a refrigerator in reverse: a small fan and compressor pull heat from the surrounding air and move it into the tank. Because it moves heat instead of making it, it works especially well in a mild climate like ours.

What rebates apply to heat pump water heaters?

You may qualify; call us and we’ll check what applies to your home. Rebates depend on who provides your electricity, where you live and, for some programs, your income. As of November 2026, these official pages list heat pump water heater rebates or help finding them:

• Silicon Valley Clean Energy. Its FutureFit Home Rebates page lists rebates for heat pump water heaters that replace a gas or electric water heater, with some cities adding extra amounts.
• WestLight Energy (formerly Peninsula Clean Energy). For San Mateo County customers, its rebates and offers page lists rebates on heat pump water heaters.
• BayREN. Its homeowner programs page points Bay Area homeowners to programs and incentive finders, plus a county contact who can walk you through them.
• PG&E. Its building electrification page links incentive finders and programs for all-electric upgrades.

Programs change often, so we check what is open when we give you your estimate.

Is a heat pump water heater right for my home?

For many Bay Area homes, yes. Before we recommend one, we check a few things:

What we check	Why it matters
Space around the unit	It needs room and air to pull heat from, so a garage or roomy closet works best
Your electrical panel	Some models plug into a standard 120-volt outlet; others need a 240-volt circuit
Distance to the panel	A long run can add electrical work
A nearby drain	It makes water (condensate) as it cools the air, which needs somewhere to go
Your household’s hot water use	We size the tank so you don’t run short

The Bay Area Air District notes that in most cases a heat pump water heater can replace a gas water heater with only light electrical work.

Do I have to replace my gas water heater now?

No. A working gas water heater does not have to be replaced. As of November 2026, the Bay Area Air District’s Rule 9-6 sets a zero-NOx standard (NOx is a type of air pollution from burning gas) for new gas water heaters under 75,000 BTU/hr starting January 1, 2027. On November 4, 2026, the Air District Board is set to consider changes that would move that date to January 1, 2028 and add some exemptions. The rule applies only when a water heater is replaced. See the Air District’s building appliances page for details. If your water heater is getting old, planning ahead gives you time to compare options and check rebates.

What happens during installation?

1. Home visit and free estimate. We check your space, panel, drain and hot water needs, and look at which rebates may apply.
2. A clear written quote. You see the price before any work begins.
3. Permits. We handle the permit for you.
4. Installation. We remove the old water heater, install the new unit and connect the water, electrical and condensate drain lines to code.
5. Setup and testing. We test the system, set it up and show you how to use its operating modes.

They were honest, very pleasant to work with and they did not try to upsell us anything we don’t actually need.

Ellen I., Yelp review

Who installs heat pump water heaters near me?

Upgrade Home Services is a family-owned company based at 743 Ames Ave in Milpitas, licensed by the California Contractors State License Board (CSLB #1066776) and serving homeowners since 2002. We install heat pump water heaters, including Rheem models, and heat pumps for heating and cooling from brands like Carrier, Daikin, Mitsubishi, Amana, Payne and Goodman. We serve 22 cities in Santa Clara, San Mateo and southern Alameda counties, including Milpitas, San Jose, Santa Clara, Sunnyvale and Fremont.