Heat Pump Installation in Milpitas, CA

How does a heat pump heat and cool a home?

A heat pump moves heat instead of making it by burning gas. In winter, the outdoor unit pulls heat from the outside air and brings it indoors. In summer, the process reverses and the system moves heat out of your home, just like an air conditioner.

Is a heat pump right for my Bay Area home?

A heat pump is often a good fit when one or more of these is true:

• Your furnace and air conditioner are both getting old.
• You have a furnace but no air conditioning, and you want cooling for hot summer days.
• You want to move from gas to electric heating.
• Your home has ducts in fair shape. If it doesn’t, a ductless mini-split heat pump can heat and cool room by room.

Our winters are mild, which suits heat pumps well.

	Gas furnace with AC	Central heat pump	Ductless mini-split
Heats and cools	Two separate systems	One system	One system
Fuel	Gas for heat, electric for cooling	Electric	Electric
Ducts	Needed	Uses existing ducts	Not needed
Best for	Homes keeping gas heat for now	Whole-home comfort with good ducts	Homes or rooms without ducts

What does the Bay Area zero-NOx rule mean for my gas furnace?

You don’t have to replace a working furnace. As of November 2026, the Bay Area Air Quality Management District’s Rule 9-4 sets a zero-NOx standard (NOx is a pollutant from burning gas) for residential and commercial furnaces made on or after January 1, 2029. The rule applies when a furnace is replaced, not to equipment already working in your home. Today, the appliances that meet this standard are electric, such as heat pumps.

The Air District is still working with stakeholders on how the furnace rule is put in place, so details can change. You can read the current rule and dates on the Air District’s building appliance rules page. If your furnace is near the end of its life, a heat pump is worth comparing when you plan the replacement.

Are there heat pump rebates in my area?

You may qualify. As of November 2026, these local programs list rebates for heat pump heating and cooling systems:

• Silicon Valley Clean Energy serves Milpitas, Sunnyvale, Mountain View, Cupertino, Campbell, Los Gatos, Saratoga, Monte Sereno, Los Altos Hills and other nearby communities.
• San José Clean Energy EcoHome Rebate is for San José Clean Energy customers replacing gas heating with a heat pump. The rebate must be approved before installation begins.
• WestLight Energy, formerly Peninsula Clean Energy, serves San Mateo County.

Each program has its own rules, and some require you to apply before any work starts. The federal home energy tax credit for heat pumps covered equipment installed through December 31, 2025, according to the IRS, so it does not apply to new installs today. Call us and we’ll check what applies to your home.

What happens during a heat pump installation?

1. Free in-home estimate. We look at your home, ducts and electrical service and talk about comfort problems you want to fix.
2. A clear written quote. You get a written quote with the equipment and the work included, in the brand you prefer.
3. Permits. We pull the permits and handle any required HERS testing (a third-party check of the new system) for you.
4. Installation. We remove the old equipment and install the outdoor unit, indoor unit and thermostat.
5. Testing and walkthrough. We run the system in heating and cooling and show you how to use it.

New heat pumps use A2L refrigerants, a newer type of refrigerant, while many existing systems use R-410A.

Do you repair and maintain heat pumps too?

Yes. Short cycling, weak heating or cooling and rising bills are common signs a heat pump needs attention. Replace filters every 1 to 3 months and keep 2 feet clear around the outdoor unit. For repairs, the diagnostic visit is $89 and is waived when you approve the repair. The Comfort Club Full plan, $18.95/month or $225/year, includes 2 maintenance visits a year for a heat pump system, plus priority service, $49 diagnostics and 15% off repairs.

We selected this company to replace our old AC system. … 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 pumps 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 any brand you want, including Amana, Carrier, Payne, Goodman, Daikin and Mitsubishi. We serve 22 cities in Santa Clara, San Mateo and southern Alameda counties, including Milpitas, San Jose, Santa Clara, Sunnyvale, Fremont and Palo Alto.