Recent Projects · Palo Alto, CA
Amana Heat Pump Replaces an Old Furnace and AC in Palo Alto
In October 2026, Upgrade Home Services replaced an old gas furnace and AC in a Palo Alto, CA home with one Amana inverter heat pump that heats and cools the upstairs. We installed it in one day, and the homeowner is using a City of Palo Alto Utilities heat pump rebate.
What did the homeowner want?
The upstairs of this 1904 Palo Alto home was heated by an old gas furnace in the attic and cooled by an old AC unit outside with a rusted fan guard and a worn coil. Both were near the end of their life, and the homeowner wanted to replace them with one all-electric heat pump.
What did we install?
- Removed the old gas furnace and outdoor AC unit and hauled them away.
- Installed an Amana S-Series 2-ton inverter heat pump (17 SEER, model AZV7SA2410A) outside on a new pad. It uses R-32, one of the newer refrigerants.
- Installed a matching Amana fan coil in the attic (model AHVE36CP0300A) with a new drain line, drain pan and safety float switch. The fan coil is the indoor unit that moves the heated or cooled air through the ducts.
- Set up a new Amana thermostat and tested heating and cooling.
Before and after
Outside: the old AC unit (left) and the new Amana heat pump in the same spot (right).
In the attic: the old gas furnace (left) and the new Amana fan coil (right).
Did the homeowner get a rebate?
Yes. The homeowner is using the City of Palo Alto Utilities heat pump rebate for switching from gas heating to a heat pump. As of November 2026, Palo Alto homes making the same switch may qualify. Amounts and rules change, so call us and we’ll check what applies to your home. Source: City of Palo Alto Utilities, Electrify My Home.
What was the result?
The upstairs now has one quiet system for heating and cooling, with no gas furnace. The inverter compressor adjusts its speed instead of switching on and off, so temperatures stay steady. The system has a 10-year parts warranty, a lifetime compressor warranty (one replacement) and our 7-year labor warranty. The job took one day.
Upgrade Home Services is a family-owned HVAC contractor in Milpitas, serving Santa Clara and San Mateo counties since 2002. Licensed, CSLB #1066776. Free estimates: (408) 649-3198.
Questions about this project
Can a heat pump replace both my furnace and AC?
Yes. A heat pump heats in winter and cools in summer, so one outdoor unit and one indoor fan coil can replace a separate gas furnace and AC, like in this Palo Alto home.
Are there heat pump rebates in Palo Alto?
Yes. As of November 2026, City of Palo Alto Utilities offers rebates for homes that switch from gas heating to a heat pump, and this homeowner used one. Amounts and rules change, so call us and we’ll check what applies to your home.
Does a heat pump work in Palo Alto winters?
Yes. Bay Area winters are mild, which is where heat pumps work best. Inverter models like the Amana S-Series adjust their speed to keep the temperature steady.
What is R-32 refrigerant?
R-32 is one of the newer refrigerants used in new heat pumps and AC systems. It replaces older refrigerants that are being phased out.
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