COSTS & REBATES
Heat Pump Rebates & Incentives in Morgan Hill, CA
The heat pump and heat pump water heater incentives Morgan Hill homeowners can currently pursue through Silicon Valley Clean Energy, and how eligibility and reservation actually work.
Quick answers
- Morgan Hill is in the Silicon Valley Clean Energy service area, so SVCE programs are the current source of heat pump incentives here.
- SVCE Full-Service Home Upgrades offers upfront amounts through a guided pathway; the project must include at least heat pump HVAC or a heat pump water heater.
- SVCE Home Rebates is the separate track for homeowners not using Full-Service, with core and income-qualified amounts per measure.
- Funding is limited and available while funds last — confirm current terms with SVCE before signing a contract or ordering equipment.
Current SVCE incentives at a glance
Morgan Hill homes are served by Silicon Valley Clean Energy, and SVCE runs two distinct pathways. Full-Service Home Upgrades is a guided program with an advisor and participating contractors. SVCE Home Rebates is the standard rebate track for homeowners who are not going through Full-Service. Both are limited while funds are available, and the amount that actually applies to your project is confirmed by SVCE, not by a contractor's estimate.
SVCE Full-Service Home Upgrades
| Measure | Advertised amount |
|---|---|
| Heat Pump HVAC | $2,000–$5,500 |
| Heat Pump Water Heater | $2,500–$6,200 |
| Electrical & Efficiency | up to $2,000 |
| Induction | up to $1,250 |
These amounts are limited while funds are available. The project must include at least heat pump HVAC or a heat pump water heater to participate. Eligibility and additional qualifications may apply, and the program advisor confirms the applicable amount for your home before the work is scheduled. Current terms are published on the SVCE Full-Service Home Upgrades page.
SVCE Home Rebates
For homeowners who are not using the Full-Service pathway, SVCE publishes standard rebate amounts per measure, with a higher amount for income-qualified households.
| Measure | Core | Income-qualified |
|---|---|---|
| Heat pump water heater replacing gas | $2,500 | $3,500 |
| Heat pump water heater replacing electric resistance | $1,000 | $2,000 |
| Heat pump HVAC replacing a gas furnace | $2,000 | $3,000 |
| Heat pump HVAC replacing electric resistance | $500 | $1,500 |
| Circuit / prewiring | $500 per device, up to $2,000 | $750 per device, up to $3,000 |
If you are participating in Full-Service Home Upgrades, you generally should not separately reserve Home Rebates for the same project — applicable rebates are handled through that pathway unless SVCE says otherwise. Current amounts and terms are published on the SVCE rebates overview page.
Before you sign
- Confirm with SVCE which pathway applies to your project and which amount you actually qualify for.
- Ask whether the incentive must be reserved before installation begins or claimed after the work is complete.
- Ask whether the contractor you are considering participates in the pathway you intend to use.
- Confirm that the written proposal lists equipment model numbers, capacity, efficiency ratings, scope of work and permit responsibility, so the documentation matches what the program requires.
- Keep the invoice, proof of payment, spec sheets, AHRI certificate, and the City of Morgan Hill permit and inspection records.
- Assume nothing is guaranteed until SVCE confirms it in writing — funding is limited.
For how incentives interact with the installed price, see heat pump cost in Morgan Hill. If you are comparing a space heating project against a water heating project, the scopes differ — see heat pump water heater installation.
Common questions
Who is eligible for SVCE heat pump rebates in Morgan Hill?
Morgan Hill is in the Silicon Valley Clean Energy service area, so SVCE programs are the current incentive source here. Full-Service Home Upgrades requires the project to include at least heat pump HVAC or a heat pump water heater, and eligibility and additional qualifications may apply. The program advisor confirms the amount that actually applies to your home and project.
What is the difference between Full-Service Home Upgrades and SVCE Home Rebates?
Full-Service Home Upgrades is a guided pathway with an advisor and participating contractors, where the applicable incentives are handled for you as part of the project. SVCE Home Rebates is the standard rebate track for homeowners who are not going through the Full-Service pathway. If you are participating in Full-Service Home Upgrades, you generally should not separately reserve Home Rebates for the same project — applicable rebates are handled through that pathway unless SVCE says otherwise.
How does income qualification change the amount?
SVCE Home Rebates list a core amount and a higher income-qualified amount for the same measure. For example, a heat pump water heater replacing gas is $2,500 core or $3,500 income-qualified, and heat pump HVAC replacing a gas furnace is $2,000 core or $3,000 income-qualified. SVCE verifies whether a household qualifies; do not assume the higher amount when budgeting.
When should a rebate be reserved or applied for?
Ask before the equipment is ordered. Some incentives must be reserved before installation begins and others are claimed after the work is complete, and that difference changes whether the amount reduces your invoice or arrives later. Funding is limited and available while funds last, so confirm current status with SVCE rather than relying on any contractor's or website's summary.
What documentation should be kept?
Keep the signed proposal, the final invoice and proof of payment, equipment model numbers and spec sheets, the AHRI certificate for matched systems, and the permit and inspection records from the City of Morgan Hill. Programs commonly require these for a post-installation claim, and they are also what you want on file for warranty and future service.
Keep reading
Talk through your options before you buy
Ask during your estimate which SVCE pathway currently applies and how it affects your project.