Los Altos council approves $75,000 residential electrification rebate pilot with SVCE partnership

Los Altos City Council on a unanimous vote authorized a $75,000 pilot residential electrification rebate program designed to accelerate replacement of gas furnaces and water heaters with electric heat-pump equipment. The council approved staff’s proposal to work with SVCE to administer and publicize the pilot and to finalize administrative procedures ahead of a targeted spring 2026 launch.

Staff described the program as focused on "speeding up the replacement of gas furnaces and water heaters with clean electric heat pumps," and said the city will leverage SVCE’s administrative infrastructure to streamline applications and allow stacking with other rebates. Staff also said the city can offer an additional $1,000 local bonus to residents for each qualifying appliance to encourage adoption.

The program is limited to single-family homes converting an existing gas appliance to an electric model and requires the household to be an SVCE customer for administrative purposes; staff said SVCE covers roughly 95% of Los Altos households. Staff also clarified that gas meter removal is not required to receive the rebate and that other gas appliances are not affected by this program. Applicants will reserve a rebate, hire a qualified contractor, apply for permits, cap the appliance gas line as required, and then submit a final request; staff said SVCE guidelines set a 120-day completion window for reserved rebates.

Council members asked detailed questions about eligibility, whether a household could receive $1,000 for both a furnace and a water heater, and whether commercial or non-SVCE residents could participate. Staff said the pilot follows SVCE program buckets for administrative simplicity, that a household may receive both appliance rebates on a first-come, first-served basis under the current design, and that staff will return with options if the council wants to expand eligibility later.

Council member Meadows said the item was "exciting" and asked about the pilot’s time frame; staff estimated current demand would spend the funds in roughly four to six months at an average of 15 applications per month. Several council members urged robust, citywide outreach before launch to ensure equitable access across neighborhoods.

The council moved to implement the pilot and voted unanimously (Lang, Meadows, Weinberg, Vice Mayor Fleger, Mayor Daly — all yes). Staff and the environmental commission will jointly assess performance and recommend future funding or expansion based on uptake and outcomes.

The pilot’s next steps are finalizing SVCE administrative approvals, launching a marketing campaign, and reporting back to council on early program performance after launch.