How much you get
$250–$500 — PG&E rebate for a qualifying air-source heat pump (3–4 ton). Typical installed cost is $13,000–$22,000; expect roughly $1,100/yr in savings versus gas heat and a 13–15 year payback on the equipment itself.
Source: PG&E
What you'll actually save each month
Rebates cover the upfront cost, but the number that decides whether this is worth it is the payback period — how long until the monthly savings pay back what you spent out of pocket. Here's the real math using PG&E's current rate:
- PG&E electricity (2026): roughly 39.25¢/kWh (blended average across all tiers/seasons, effective March 2026) — PG&E's real Tier-1/baseline rate is lower than this blended figure, but we couldn't independently verify the exact Tier-1 number from PG&E's own tariff, so we're using the honest blended average rather than guessing at a lower number. (Check current PG&E rates →)
A modern cold-climate heat pump typically moves 2.5–3.5 units of heat per unit of electricity it uses (its "coefficient of performance"), which is why it beats electric resistance heating on cost even at this rate. Comparing against a gas furnace depends on your home's insulation, size, and current gas rate — there's no single number that's honest for every house.
Get your real payback number: Plug in your current heating bill and system type in our free assessment tool for an estimate — not a generic average.
How to claim it
PG&E's heat pump incentive runs through TECH Clean California — it's a point-of-sale discount, not a form you file yourself.
- Choose a TECH-enrolled contractor; the system must meet TECH Clean California's minimum efficiency tier
- Your contractor applies the rebate directly to your invoice as a discount — you don't submit a separate application
- If you qualify for the federal HEEHRA rebate too, note that single-family HEEHRA funding was reported fully reserved statewide as of February 2026 — confirm current availability with your contractor before counting on it
- Standard TECH Clean California processing takes about 6–10 weeks once your contractor submits
Program details: TECH Clean California Single-Family Incentives →
Heat Pump installers in San Jose
Real companies serving San Jose, pulled from their current Google reviews. We're not paid to list anyone here.
Common questions
How much is the Heat Pump rebate in San Jose?
$250–$500 — PG&E rebate for a qualifying air-source heat pump (3–4 ton). Typical installed cost is $13,000–$22,000; expect roughly $1,100/yr in savings versus gas heat and a 13–15 year payback on the equipment itself.
Where do I find heat pump installers in San Jose?
Browse real, currently-reviewed installers near San Jose on our installer directory, or run our free assessment for a shortlist matched to your project.
Next steps
View all San Jose rebate programs → or check the official rebates & incentives page → for the current source of truth.