Heat Pump Installation in Palo Alto, CA

What did we change in a Palo Alto heat pump conversion?

A lot more than the box itself. The homeowner had a furnace and a separate A/C and wanted one system with better airflow and year-round comfort. We replaced both with an Amana heat pump. You can see the before and after on the Palo Alto HVAC replacement project.

What we changed	Why it mattered in this home
New 7/8 x 3/8 line set (the two copper refrigerant pipes)	New refrigerant piping between the indoor and outdoor units
Outdoor unit moved to the back of the home	A cleaner layout, with a cover over the line set
Drain pan under the air handler (the indoor unit)	Catches water the unit makes as it runs
New primary and secondary drain lines	Two paths for that water, to protect the home
Enlarged supply runs (the ducts feeding each room)	More air reaching the rooms

Your house may need some of these items or none of them. We check the attic, the ducts and where the outdoor unit can sit before we write the quote.

Why is Palo Alto different from nearby cities?

Palo Alto owns its utility. Power, gas, water and sewer all come from City of Palo Alto Utilities, known as CPAU. That means your heat pump incentives are set by the city. San Jose and Fremont, by contrast, get power through community energy providers, with PG&E delivering it.

How does Electrify My Home work if I pick my own contractor?

You keep the choice. As of November 2026, the Electrify My Home program page lists ducted and ductless heat pump systems, heat pump water heaters, and the electrical work that sometimes goes with them, like a panel upgrade. There are two paths: a full-service option the city manages, or hiring a contractor of your choice, like us, while still applying for the city’s rebates. Before we start, we walk through the program’s rules as they stand that day. Rules and funding change, so check the program page for what is open today. You may qualify; call us and we’ll check what applies to your home.

What permit does a Palo Alto heat pump need?

A city building permit, filed online. Palo Alto’s Start the Permit Process page routes every submittal through the city’s Accela portal. As of November 2026, that page notes two helpful things for this job: heat pump heating and cooling systems can get an instant permit, and switching a gas furnace or gas water heater to a heat pump can earn a rebate on permit fees. We submit the permit, meet the inspector and arrange HERS testing, a third-party test of the finished install.

Can I change my water heater at the same time?

Yes, and it can be easier to plan both at one estimate. In another Palo Alto home, the old water heater was outdated and no longer gave reliable hot water, so we put in a new high-efficiency unit (Palo Alto water heater project). If you want to go electric, CPAU has a heat pump water heater page with its current rebate details. A heat pump tank needs room to breathe and enough electrical capacity, so we measure the space and look at your panel first. Our heat pump water heater installation page explains the options.

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 handles heat pump installs in Palo Alto?

Upgrade Home Services is a family-owned contractor that has installed and repaired heating and cooling systems since 2002. Our crew comes from the shop on 743 Ames Ave, Milpitas, and is licensed under CSLB #1066776. Amana was the right fit for the conversion above, and we also install Carrier, Daikin, Goodman, Mitsubishi and Payne. Palo Alto is one stop on our list of 22 cities, which runs through Santa Clara and San Mateo counties and the south end of Alameda County. For how heat pumps work in general, read our main heat pump page.