SAN JOSE, Calif. — Sept. 8, 2026 — A San José initiative is helping dozens of homeowners make the switch from gas to electric water heating by tackling two of the biggest hurdles to home electrification: upfront costs and installation.  

Today, Rewiring America, Pacific Gas and Electric Company (PG&E) San José Clean Energy, San José Mayor Matt Mahan, GE Appliances Air & Water Solutions, and Larratt Brothers Plumbing celebrated a milestone in the San José Heat Pump Water Heater Program, which has helped more than 26 homeowners install electric heat pump water heaters that can help lower energy use and energy bills.

The four-month program paired San José Clean Energy’s $3,000 EcoHome heat pump water heater rebate with fixed installation pricing and access to its EcoHome Payment Plan, which offers up to $5,000 in 0% interest financing. The streamlined process allowed many installations to be completed in less than six hours. In total, San José Clean Energy provided more than $60,000 in rebates to participating customers.

“I knew our water heater would eventually need to be replaced, but I wasn’t sure what upgrading would involve or how much it would cost,” said Mark Kelley, program customer and San José homeowner. “The rebates and support through this program made switching to a heat pump water heater much more affordable and straightforward. It feels good knowing we made an upgrade that will save us money and make our home more energy efficient.”

For San José resident, Mark Kelley, the program cut the upfront costs of replacing his aging gas water heater by 60 percent—from about $7,650 to $2,950, thanks to fixed pricing and rebates. 

“When your water heater breaks, you shouldn’t have to choose between one that reduces air pollution and one that you can afford,” said San Jose Mayor Matt Mahan. “Our pilot proves you don’t have to—the new technology we tested allows families to buy appliances that are both cleaner and cheaper.”

Heat pump water heaters are two to four times more efficient than conventional gas or electric resistance water heaters because they move heat rather than generate it, which can help households save on their energy bill.

“The technology is ready. The challenge is making it easy for people to get it into their homes,” said Ari Matusiak, founder and CEO of Rewiring America. “San José is showing how to do that: lower the upfront cost, take the hassle out of installation, and give families a simple path to equipment that can save energy and money.”

“Electrifying a home can feel complicated, and customers shouldn’t have to navigate that process alone,” said Lydia Krefta, PG&E's Senior Director of  Electrification, Decarbonization and Mobility.  “Programs like this give us valuable insight into what works, what barriers remain and how we can make home electrification more accessible for more households.”

“Our goal at San José Clean Energy is to make home electrification practical and affordable for our customers,” said Lori Mitchell, Director of the City of San José Energy Department, which operates San José Clean Energy. “By combining our rebates and zero-interest financing with the fixed pricing negotiated by Rewiring America and a streamlined installation process, this pilot addressed some of the biggest barriers customers face. What we learn from programs like this helps us design solutions that make it easier for more San José households to electrify and save energy.”

Installations were completed by Larratt Brothers Plumbing, a local San José contractor, and included GE Profile™ GEOSPRING™ 120V/240V Convertible Heat Pump Water Heaters.The units feature advanced technology designed to work with a home’s existing electrical system, helping make the transition to efficient, electric water heating simpler for participating households. 

“The strong response in just 90 days shows there’s real demand for programs that make these upgrades simpler and more accessible,” said Aaron Gianni, CEO of Larratt Brothers Plumbing. “By simplifying the installation process and responding quickly when customers needed a new water heater, we helped families transition to efficient electric technology with less disruption.”

“The next phase of home electrification depends on making efficient technology work in homes as they exist today,” said Khalid Qirem, Vice President of GE Appliances Air & Water Solutions. “Flexible 120V/240V heat pump water heaters can help remove one of the biggest barriers to adoption, the costly electrical upgrades, making it easier and more affordable for more families to make the switch.”

That flexibility can translate into meaningful savings for homeowners. By avoiding the need for major electrical upgrades, some customers can save $1,200 to $5,700 in installation costs.

For more information about Rewiring America's work helping households electrify, visit rewiringamerica.org. For more information about PG&E’s electrification resources for customers, visit pge.com/electrify.