CSI-Thermal Rebate Program

Investing in a solar water heating system for your home is a smart choice to save money on your natural gas bill. It also reduces your impact on the environment and is a more affordable way to go green than other renewable technologies.

How Does Solar Water Heating Work?

Solar water heating works alongside your current water heater. It collects energy from the sun to preheat water for sinks, showers, baths, dishwashers and washing machines. This reduces the amount of conventional energy needed to heat water for your home — and saves you money on your energy bill.

Who Benefits from the Program?

The CSI-Thermal Program offers cash rebates for residential customers who install a solar water heating system on their single-family home to help off-set some of the upfront cost. The system must be used to heat domestic hot water for personal use to qualify for a rebate (space heating/cooling or pool heating are not eligible).


PG&E is offering cash rebates of up to $2,719, granted in the form of a one-time payment. The amount is determined by how much energy the system is expected to displace annually. For solar water heating systems installed on single-family homes, the average incentive is approximately $2,000, at a rate of $18.59 per therm displaced. (A therm is a unit of measurement for the use of natural gas. Each person in a typical household uses approximately 11.2 therms per month for water heating.) Higher incentive rates of $25.64 per therm displaced are available for qualifying low-income properties, up to a maximum rebate of $3,700.

Rebates decline over time, so the earlier you apply, the higher the rebate you are eligible to receive. Act now to take advantage of this incentive program, because it is paying the highest value.

Eligibility Requirements

To apply for the CSI-Thermal program, your home must meet all of the following requirements:

  • Hot water in the home must be currently heated by PG&E's gas service.
  • The solar water heating system must be installed on a single-family home.
  • The installed solar water heating system must be certified by the Solar Rating and Certification Corporation (SRCC) or the International Association of Plumbing and Mechanical Officials (IAPMO).
  • The solar water heating system must be installed by an eligible contractor.

Is Solar Water Heating Cost Effective?

After the initial installation cost, a solar water heating system can reduce your monthly heating bills by 50 to 80 percent. Over time, the energy and cost savings can be substantial.

To help reduce the upfront investment cost, look into a Federal Tax Credit and discuss other potential rebates and financing with your contractor.


Contact Us

  • Email:

    Solar Customer Service Center

    Mailing Address
    PG&E Solar and Customer Generation—CSI
    PO Box 7433
    San Francisco, CA 94120

    Street Address (Application Fee Submittals Only):
    PG&E Solar and Customer Generation—CSI
    245 Market St., MC N7R
    San Francisco, CA 94105-1797

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