Heating & Air Conditioning in Palo Alto, CA

Who provides electricity and gas in Palo Alto?

Palo Alto is different from most of its neighbors. The city owns and runs its own utility, City of Palo Alto Utilities (CPAU), which supplies electricity, natural gas, water and sewer service. So the utility programs that matter for your HVAC and water heater come from the city, not from PG&E or a regional clean energy agency.

What is Electrify My Home, and can I use my own contractor?

Electrify My Home is CPAU’s program for moving homes from gas appliances to electric ones. As of November 2026, the program page covers heat pump HVAC (ducted and ductless), heat pump water heaters and related electrical work such as panel upgrades. You can let the city arrange the whole job, or choose your own contractor and still apply for city rebates. You may qualify; call us and we’ll check what applies to your home.

How do Palo Alto building permits work for HVAC?

Palo Alto takes permit applications online. Its Start the Permit Process page says every submittal goes through the city’s Accela portal, mentions an instant permit for heat pump space conditioning systems, and notes permit fee rebates for switching gas water heaters and furnaces to heat pumps. Upgrade Home Services files the permit, meets the inspector and arranges any HERS testing the new system needs. HERS testing is an independent check that the system was installed and sealed correctly.

What have we done in Palo Alto?

• HVAC replacement with an Amana heat pump. We replaced an old furnace and AC with a heat pump, moved the outdoor unit to the back of the house, added a drain pan and new drain lines, and enlarged supply runs for better airflow.
• Water heater replacement. An outdated unit was no longer giving reliable hot water, so we installed a new high-efficiency water heater.

For homeowners planning a new system, our Palo Alto guide to AC installation walks through the choices.

What do Palo Alto homeowners ask us?

1. Can a heat pump replace both my furnace and AC? Yes. That’s exactly what our Palo Alto heat pump project did.
2. Will you work with CPAU’s rebate rules? Yes. We’ll go over the program’s current requirements with you before work starts.
3. Can my water heater move to a heat pump model? Usually. It depends on space, airflow around the tank and your electrical panel, which we check on the estimate.
4. Do you service older systems too? Yes. We repair and maintain furnaces, ACs and wall heaters of every major brand.

Which services fit Palo Alto homes best?

• Heat pump installation
• Heat pump water heaters
• Ductless mini-splits
• Heating repair

Or start from a category: cooling, heating, water heaters or indoor air quality.

Why call a Milpitas company for a Palo Alto home?

Upgrade Home Services is family-owned and has been installing and repairing HVAC systems since 2002. Our shop is at 743 Ames Ave in Milpitas, and we’re licensed under CSLB #1066776. Palo Alto is part of our service area of 22 cities across three counties, and we install the brand you pick, from Amana and Carrier to Daikin and Mitsubishi.