If you haven’t thought about your water heater lately, 2025 is the year to start. Beginning in early 2027, most Bay Area jurisdictions will no longer allow the installation of new gas water heaters. Whether your current unit is aging or you’re simply ready to upgrade, now is the ideal window to explore your options — on your timeline, not under pressure.
⚠️ Heads up: The gas water heater phase-out begins in most Bay Area counties at the start of 2027. Acting now means more choices, no rush, and access to current rebate programs. Read more here
Still on Gas? Consider Going Tankless First
If your home runs on natural gas and your water heater is nearing end of life, upgrading to a tankless gas water heater before the 2027 cutoff is a move many Bay Area homeowners are making right now. Tankless units heat water on demand — meaning endless hot water without the standby energy loss of a traditional storage tank, and a significantly longer equipment lifespan. Personally I think tankless water heaters are “the bee’s knees” of gas water heating. I love mine, a Navien 240A. With a large family and frequent never running out of endless hot water is a definite perk!
| Traditional Tank Gas | Tankless Gas Heater |
| Lower upfront cost Familiar, simple setup Limited hot water supply Constant standby heat loss |
Endless hot water on demand Higher energy efficiency Space-saving wall mount 15–20 year lifespan |
The All-Electric Option: Heat Pump Water Heaters
Ready to go fully electric — or want to future-proof your home before the deadline? A heat pump water heater (HPWH) is one of the most energy-efficient options available today. Rather than generating heat directly, these units pull warmth from surrounding air and transfer it to the water, using up to 3× less electricity than a conventional electric resistance heater.
💡 Heat pump water heaters are currently eligible for significant federal and state rebates — potentially saving hundreds at installation. Our team can help you navigate what’s available in your area.
That said, HPWHs have specific needs. They require adequate surrounding air space, proper ventilation, and the right electrical service. In tighter spaces, our team often ducts the unit to the exterior to bring in fresh air and ensure peak performance — something you’ll see in our real-world installs below. HPWHs also have slower recovery rates than gas tankless units, so a proper design consultation matters. It’s not a one-size-fits-all installation, which is why we assess every home before recommending a solution.
Real Bay Area Installs by Bellows
Here’s a look at three recent jobs across our service area — each one a real home, a real challenge, and a real upgrade our team designed and installed.
Topaz Street — Capitola, Santa Cruz County – Full Electrification
Before — Standard Gas Water Heater
After — Bradford White HPWH
This Capitola homeowner was ready to make a full leap away from fossil fuels. We replaced their aging gas water heater with a new Bradford White AeroTherm heat pump water heater, and while we were at it, upgraded their gas furnace to a Friedrich heat pump HVAC system. This home is now fully electric — highly efficient, ready for 2027, and set up for lower utility bills for years to come. The install also demonstrates how an HPWH and a modern heat pump system can coexist neatly in a utility closet when the space is designed right.
For qualifed homeowners a system like this installed in the Santa Cruz & Monterey area can qualify for rebates through Central Coast Community Energy.
Wilkinson Avenue — Cupertino, Santa Clara County – Propane to Electric + Cooling
Propane (LP) water heaters are among the most expensive ways to heat water in a home. This Aptos client made the switch from an inefficient LP tank to a Bradford White AeroTherm heat pump water heater — and took things a step further by replacing their wall heater with a ductless mini-split system. Going all-electric not only eliminated the propane bill, but brought something this home never had before: air conditioning for those warm inland Aptos summers. A smart, well-rounded upgrade on every level.
The homeowner was able to take advantage of rebates through Silicon Valley Clean Energy. Be sure to also check out Peninsula Clean Energy
Park Way — San Anselmo, Marin County – Custom Ventilation Design Done Right
This San Anselmo job is a perfect example of why a professional design assessment matters. The utility space didn’t have sufficient open air volume on its own — so our team ducted the unit directly to the exterior, drawing in fresh outside air to keep the heat pump operating at peak efficiency year-round. Without that step, performance would have suffered. With it, this client now has a highly efficient HPWH that’s purpose-built for their specific home — not just a unit that was dropped in and hoped for the best.
This client wasn’t able to take advantage of any current rebates in Marin County. But, Sonoma Clean Power is offering rebates on most HPWH installs.
So, What’s Right for Your Home?
Every home is different. The right water heater depends on your current fuel source, available space, household size, and how you use hot water. As you can see from our real installs, even the same type of unit can require very different approaches depending on the home. That’s why we don’t sell from a spec sheet — we come out, look at your space, and design the right solution.
Ready to Upgrade?
Schedule a free consultation with a Bellows plumbing advisor. We’ll assess your space and find the right solution for your home. Call us 877-477-7151 or BellowsService.com
