Water heaters Santa Clara

Hot water in Santa Clara, where the city also sells the electricity

In Santa Clara the city writes the water heater rules and also owns the electric utility, so a switch from gas to a heat pump passes through two city offices. The Building Division issues a like-for-like replacement as a Simple Permit for houses, duplexes and ADUs, never for condos or townhomes, and wants an expansion tank wherever a check valve or pressure regulator closes the system. Silicon Valley Power then asks for proof of that permit before it pays a heat pump rebate.

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  • Rules on this page checked against 11 public sources, October 2026

Asked most

Santa Clara water heater questions the rules already answer

Can we still apply for SVP's heat pump water heater rebate after the unit is in?

Yes, as long as you apply within 60 days of the building permit's issue date or the purchase date. You will need the receipt with brand and model, the contractor's invoice with license number, before and after photos, and proof the permit was issued. Smaller rebates arrive as a one-time credit on the Silicon Valley Power part of the city utility bill, and larger ones as a check.

Does a tankless electric water heater qualify for a Silicon Valley Power rebate?

No. SVP's water heater rebates are for heat pump water heaters with a Uniform Energy Factor of 3.30 or more, for any tank size, and its rules state that instantaneous and tankless water heaters do not qualify. A tankless unit can still be installed under a city permit; it simply earns no SVP rebate.

We own a townhome in Santa Clara. Can our plumber use the quick Simple Permit for a new heater?

No. The Building Division excludes townhomes, apartment complexes and condos from Building Simple Permits, along with properties in historic areas or with active code enforcement cases. Your replacement goes in as a regular permit, and if your association manages the building's mechanical rules, check those before the plumber orders a different type of unit.

Mission Santa Clara de Asís
Mission Santa Clara de Asís. Photo: JaGa, CC BY-SA 3.0, via Wikimedia Commons.

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Free to request, and you agree the scope and price with the person you hire before work starts. In California, a job over $1,000 in labor and materials, or one that needs a building permit, must be done by a contractor licensed by the CSLB in the right class. Ask for the license number and check it at cslb.ca.gov.

Permits and local rules

Four Santa Clara documents behind a water heater job

  1. GP09 Water Heater Requirements

    The Building Division's bulletin requires a plumbing permit before work starts, and work done without one is subject to additional fees. A final inspection follows once the heater is in and all work is complete, with the permit card and any approved drawings shown to the inspector. Re-inspection fees can apply if the inspector cannot get access, the job is not ready, or earlier corrections were not made. Buildings never previously occupied carry additional energy code requirements.

    Source: City of Santa Clara Building Division (santaclaraca.gov)

  2. Building Simple Permits

    Simple Permits cover limited like-for-like work at single-family houses, duplexes and ADUs, including residential water heater replacements. Projects in historic areas, with active code enforcement cases or other parcel conditions are not eligible, and neither are townhomes, apartment complexes or condos. Fees are non-refundable and are not credited toward a corrected application, and the city tells anyone unsure which record type to use to apply for a Building Regular Permit.

    Source: City of Santa Clara Building Division (santaclaraca.gov)

  3. SVP Heat Pump Water Heater Rebate Rules

    The rebate is open only to current SVP residential customers, for a unit installed and operating in an existing home; new construction is excluded. Only a contractor's labor counts toward the rebate, an owner's own labor never does, and the amount cannot exceed what was paid for the heater, its installation and the permit fees. SVP may verify both the sale and the installation before paying, and approval is at its sole discretion.

    Silicon Valley Power (opens in a new tab)

  4. Reach codes under Ordinance No. 2081

    Santa Clara's reach code chapters, 15.36 for the Energy Code and 15.38 for the Green Building Standards Code, have been in effect since January 1, 2026 under Ordinance No. 2081. The city's FAQ says they apply only to newly constructed buildings, not to remodels, repairs or appliance maintenance, and answers directly that an existing gas water heater, furnace or stove does not have to be traded for an electric one.

    Source: City of Santa Clara Building Division (santaclaraca.gov)

State license for this work: C-36 Plumbing, C-20 Warm-Air Heating, Ventilating and Air-Conditioning, C-10 Electrical. Look up a contractor's license on the CSLB website (cslb.ca.gov).

The work

Santa Clara water heater calls, and what each one sets off

  • A gas tank replaced with another gas tank

    A like-for-like gas swap at a house, duplex or ADU can go through the Simple Permit portal, where an automatic compliance check issues the permit at once or staff review it within one to two business days. The inspector then works from the city's GP09 bulletin, which asks for a sediment trap downstream of the appliance shutoff valve, a Type B vent passing through roof flashing to a listed cap at least one foot above a roof of up to 6:12 pitch and five feet above the highest draft hood, connector joints held by at least three screws, and no tape used to seal or support the vent.

  • Gas to heat pump, with SVP's rebate

    SVP's gas-to-electric rebate needs an ENERGY STAR heat pump model with a Uniform Energy Factor of at least 3.30, the old gas heater taken out, and proof that a building permit was issued. The application goes in within 60 days of the permit or purchase date, with before and after photos and a contractor invoice showing the license number. Because the Simple Permit list names only like-for-like replacements, ask the plumber which permit record fits a change from gas to a heat pump.

  • A 120-volt plug-in unit, or a 240-volt one

    SVP's guide says many heat pump water heaters need a dedicated 30-amp, 240-volt circuit, while some 15-amp, 120-volt models plug into an existing outlet and are less likely to need panel work. It also warns that the 120-volt units do not suit every home, and that a house with many occupants and heavy hot water use may be better served by a 240-volt model. Sizing that choice to the household is part of what the plumber or electrician should explain before ordering.

  • Swapping an electric tank in a rental

    Santa Clara landlords can take part in SVP's program when the tenant is the eligible SVP residential customer. Replacing an electric resistance tank with a heat pump falls under SVP's separate electric-to-electric rebate, and the unit replaced must actually be an electric resistance heater. Tankless and instantaneous heaters do not qualify under either rebate, and SVP allows one rebate per service address per measure every ten years, so a second upgrade at the same address within that period gets nothing.

Two wall-mounted tankless water heaters plumbed with copper supply lines
Two wall-mounted tankless water heaters plumbed with copper supply lines. Photo: Behrat, CC BY-SA 3.0, via Wikimedia Commons.

The houses here

Tract garages, shared walls and very hard water

Two kinds of housing shape water heater work in Santa Clara. For a detached house, SVP's own electrification guide says a heat pump unit works better in an unconditioned space such as a garage, in a room holding at least 750 to 1,000 cubic feet of air, because the unit blows out cool air and putting it inside the living space raises winter heating needs. The other kind is attached housing. Townhomes, condos and apartment complexes are shut out of the city's Simple Permits, so even an identical replacement there goes in as a regular permit. Under most of the city, the tank fills from the city's deep wells, water its 2025 quality report rates as very hard.

Timing

Two clocks on a Santa Clara heat pump switch

SVP's clock starts with the paperwork: its application is due within 60 days of the building permit's issue date or the purchase date, so an application filed late can miss the rebate entirely. The Air District's clock is set by its Board, which holds a public hearing on November 4, 2026 on moving the zero-NOx date for small gas water heaters from January 1, 2027 to January 1, 2028. Written comments close at 6 p.m. on November 1. Until the Board acts, the 2027 date in the adopted rule stands.

Before you hire

Ask these before a Santa Clara plumber orders the unit

  • Does our job qualify for a like-for-like Simple Permit, or does a switch to a heat pump mean a regular permit?
  • Does the model you are quoting carry ENERGY STAR and a Uniform Energy Factor of 3.30 or higher for SVP's rebate?
  • Will your invoice show your contractor's license number, and will you take the before and after photos SVP asks for?
  • Is there a check valve, backflow preventer or pressure regulator on our line, so the expansion tank is required?
  • Is your C-36 Plumbing license current on cslb.ca.gov, and does it cover the water softener if you recommend one?

More questions

Still deciding?

Where should a heat pump water heater go in a Santa Clara house?

SVP's electrification guide calls for a room with at least 750 to 1,000 cubic feet of air, about a 10 by 10 foot room, though ducting or vents can allow a smaller space. Since the unit exhausts cool air, the guide favors an unconditioned spot such as a garage; inside the living space it adds to winter heating and cuts the savings.

We are on SVP's rate assistance. Is there extra help for a heat pump water heater?

There can be. SVP adds an income-qualified bonus to its heat pump water heater rebates for customers enrolled in its Financial Rate Assistance Program or the Low Income Home Energy Assistance Program. Enrollment has to come before the purchase date, with income verified within the prior 12 months, so sign up first and buy the unit afterward.

Where these facts come from

Checked against these public sources in October 2026. Rules and programs change: confirm permit requirements with the city before work starts, and a contractor's license on the CSLB website.

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