Your Guide to the 2027 BAAQMD Water Heater Rule 9-6

A Step-by-Step Guide for Bay Area Homeowners Converting To A Heat Pump Water Heater

As we know, beginning 1/1/2027, BAAQMD’s new Rule 9-6 (Read More About Rule 9-6 Here) will essentially ban residential gas water heaters in the 9 San Francisco Bay Area Counties. Homeowners with a gas water heater that fails after 12/31/2026 will need to convert to an electric heat pump water heater. Follow our step by step guide to help make this process as easy as possible.

Step 1: The “Age Test”

Check the manufacture date on your current water heater (this can be found on the rating plate of the water heater. (This is usually found on the large sticker on the side of the water heater).

• If your unit is 8–10+ years old: You are in the “Replacement Zone.” It is highly recommended to plan your replacement now.
  • You can replace your gas water heater and plan for an electric heat pump conversion down the road.
  • You can also preventatively switch now. This will help avoid a cold-shower emergency, help reduce energy usage and avoid having to wait for electrical work or possible 2027 permit delays.
• If your unit is less than 6 years old, it’s still fairly new: You’re in good shape for now, and can use the next few years to plan a seamless conversion to heat pumps.
  • Take the time to prepare your home’s electrical system and be ready when your water heater fails down the road.

Step 2: Check Your Electrical Capacity

Electric Heat Pump Water Heaters generally require a dedicated 240V circuit.

• What is the amperage of your panel? Is there available space to add a double -pole breaker? Check your breaker panel: Look for a double-pole breaker (like the ones used for an electric dryer or A/C).
• Need an upgrade? If your panel is full or only 100-amp service, you may need a panel upgrade.
• Pro Tip: Some “Plug-in” 120V models are available that don’t require panel upgrades—ask us if your home qualifies! Be advised, these do not produce the same amount of hot water or recover at the same rate. You will notice reduced hot water supply.

Step 3: Evaluate Your Space

Heat pumps need “breathing room” to pull heat from the air.

• Space: Ideally, they need about 450–700 cubic feet of air space (roughly the size of a small utility room or a corner of a garage).
• Where is your current water heater? Would it be a benefit to relocate the water heater, while converting to an electric heat pump. We can help answer these questions.
• Drainage: Because they dehumidify the air, they produce a small amount of condensation. We will need to ensure there is a nearby floor drain or a path for a small condensate pump.

Step 4: Lock in Your Rebates

As of 2026, many state, city and utility-level rebates (like HEEHRA) are available. Some rebate programs are in high demand and frequently move to waitlists once funds have been depleted. It is extremely important to lock in your rebates as early as possible. Check our resources below to find the best rebates, incentives and/or tax credit for your heat pump water heater conversion.

• Local Incentives: Check with BayREN and your local utility provider (like PG&E or MCE) for any “instant” rebates currently available for your zip code. See our resource links below.
• Local Resources –
  • https://techcleanca.com/incentives/single-family-incentives/
  • https://www.switchison.org/incentive-finder

Utility Providers in the Bay Area

Below is a list of the Major Bay Area Electric Providers. We recommend you also check with your local utility provider for additional rebates available.

• PG&E (Pacific Gas & Electric):
  • https://www.pge.com/en/clean-energy/building-electrification.html#electricappliances
• Ava Community Energy (formerly EBCE): Serves Alameda County and urban parts of the Valley.
  • https://avaenergy.org/go-electric/savings-incentives/
• Peninsula Clean Energy: Covers San Mateo County.
  • https://www.peninsulacleanenergy.com/residential/rebates-offers/
• Silicon Valley Clean Energy (SVCE):
  • https://www.siliconvalleypower.com/residents/rebates
• CleanPowerSF: Operated by the SFPUC for San Francisco residents.
  • https://www.cleanpowersf.org/waterheater
• MCE Clean Energy: Serves Marin, Napa, and parts of Contra Costa/Solano.
  • https://www.sierraclub.org/sfbay/community-choice-energy

Municipal Utilities (Own Grid/Independent Provider). Some cities operate their own municipal electric utilities independent of PG&E, these providers may also offer rebates.

• Silicon Valley Power: City of Santa Clara.
  • https://www.siliconvalleypower.com/residents/rebates
• Palo Alto Utilities: City of Palo Alto.
  • https://www.paloalto.gov/Departments/Utilities/Electrification/Electrify-My-Home
• Alameda Municipal Power: City of Alameda.
  • https://www.alamedamp.com/407/Rebates-and-Incentives

Note – You can only receive rebates from the utility provider you have an account with. Additional rebates can be layered, you may qualify for a State rebate / a clean energy rebate and a local utility rebate. Rebate funds can run out and are not guaranteed.

Step 5: Schedule Your Pre-Compliance Consultation

Don’t wait until after January 1, 2027, when your gas water heater fails. This may cause hot water delays for your home and family.

• Call Water Heaters Only, Inc. at (833) 505-9525.
• We will perform a site-specific assessment of your electrical panel, space requirements, and discuss rebate eligibility.
• Get your quote: We’ll provide a clear, all-in price so you can budget for the transition on your own terms or if your gas water heater is older than 6 years, we may recommend you preventatively replace it with a gas water heater.