Who eligible to apply for Palo Alto home electrification rebates?
Palo Alto residents with active electric and gas utility services; you will need your utility account number to apply. If you are a property owner without an account number associated with your Palo Alto property, use either your tenant’s account number or contact us at utilityprograms@paloalto.gov for assistance. If you rent your home, encourage your landlord to switch to electric.
Is there a cut-off date for when projects needed to be completed to qualify for a rebate?
The heat pump HVAC rebate, heat pump water heater, and all add-on rebates are only available for projects completed on or after January 13, 2025. All rebate applications must be submitted no later than 90 days after the project has passed final inspection.
Can I apply for add-on rebates, such as insulation or electrical panel upgrades, separately?
No, add-on rebates are only available in combination with heat pump water heater (HPWH) or heat pump HVAC rebate.
If I plan to install a combined space heating and water heating system, can I apply for both the HPWH rebate and HP HVAC rebate?
Yes, a combined heat pump system qualifies for both HPWH and HP HVAC rebates. However, you must apply for each rebate separately.
What is a CPAU Instant Rebate Partner, and what are the benefits of selecting them?
Selecting a CPAU Instant Rebate Partner lets you take advantage of instant savings and a hassle-free rebate process.
- Immediate Discount – Receive your entire CPAU rebate at the point of sale, reducing your upfront costs.
- Hassle-free Process – Your contractor manages and submits the rebate application on your behalf.
To find a CPAU Instant Rebate partner, check the Contractor Directory in the Rebate Hub and look for the City of Palo Alto Instant Rebate banner on the contractor’s tile.
How long will it take to receive approval after submitting my rebate reservation?
The City will typically review and approve rebate reservations within 5 business days. If additional information is required, you will receive an email notification with next steps.
How long will it take to receive my rebate after submitting the final application?
Once your final rebate application is approved, the rebate payment will be processed and sent via check within approximately five weeks. Ensure all required documentation is submitted to avoid delays.
Why do I need to submit a W-9 for the gas meter removal incentive?
The City of Palo Alto considers gas meter disconnection incentives to be taxable income and will not disburse any incentive without having first received a W-9 form from the Customer. By submitting these tax forms, Participants agree that they are responsible for consulting their own tax advisor as to the tax consequences associated with all incentives and rebates provided by the City of Palo Alto. Personal information provided on the W-9 will be used by the City of Palo for tax reporting purposes only.
Are there still any federal tax credits available to help with the cost of energy-efficient home upgrades?
Yes, federal income tax credits of up to $3,200 are currently still available through December 31, 2025, to help homeowners offset the cost of energy-efficient upgrades. Federal tax laws can change; please consult a tax advisor to determine whether you are eligible for this type of tax credit. More details are available on Energy Star’s Federal Tax Credits for Energy Efficiency page.
Tax credits include:
- Up to 30% of the project cost, capped at a combined total of $2,000 annually, for heat pumps, heat pump water heaters, and biomass stoves/boilers.
- Up to 30% of the project cost, capped at $1,200, for other energy-efficient home improvements.