Do your part to help California install six million heat pumps by 2030
California is transitioning toward a carbon-neutral economy by 2045, and replacing gas appliances with high-efficiency electric alternatives, such as heat pumps, is a critical step for reducing emissions from the residential building sector. In a letter to the Chair of the California Air Resources Board (CARB), Governor Gavin Newsom called for the state to ensure that the 2022 Climate Change Scoping Plan provides a path to achieve this goal, requesting new efforts to advance climate-friendly homes.
Governor Newsom set a goal of creating:
As of July 2025, the state still has a long way to go, having installed around 2.4 million heat pumps so far. To hit the six million target by 2030, the pace needs to more than double. Every year of delay puts California’s carbon neutrality goals further out of reach.
The good news? Momentum is building.
July 2025 – 2.4M heat pumps have been installed
Incentive programs are accelerating progress
The California Energy-Smart Homes Program makes the transition to all-electric easier by lowering the cost of energy-efficient equipment and appliances. By lowering upfront costs, these incentives make it easier for builders and property owners to choose heat pumps and all-electric designs.
All-electric homes, including single family, duplexes, townhomes, ADUs, and multifamily properties, are designed to be more energy-efficient than dual-fuel and gas-powered homes while offering residents improved comfort and safety. Not only do the benefits of all-electric design make heat pumps worth looking into, but consumer demand is also shifting in this direction.
Heat pumps will soon take the A/C crown
Gas heating isn’t the only technology heat pumps are replacing; conventional air conditioners are on the decline, too. Statistics released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) show that heat pumps are more popular than ever for air conditioning. While air conditioners outsold heat pumps by two-to-one in 2015, the gap shrank to 35% as of 2024.
Contractors are seeing the shift firsthand:
- 58% of contractors installed more heat pumps than they did over the prior three years
- 71% of contractors believe heat pumps will make up a larger fraction of work over the next three years
As installer familiarity grows, so does confidence in the technology. This matters since contractor recommendations heavily influence homeowner decisions.
Efforts to promote heat pumps in California
In 2024, the state convened the nation’s first public-private partnership to support heat pump deployment, the California Heat Pump Partnership (CAHPP). CAHPP unites state policy leaders, heat pump manufacturers, retailers, distributors, utilities, and other stakeholders to accelerate the growth of California’s heat pump market.
CAHPP published a blueprint in March 2025, “Scaling California’s Heat Pump Market: The Path to Six Million,” that details the current market for heat pumps, major barriers to the technology’s adoption, and strategies for achieving the state’s goals.
Going forward, CAHPP’s planned efforts will continue to align with the state’s long-term decarbonization objectives, including those related to equity and affordability, technology innovation, and targeted electrification. Sounds a lot like Energy-Smart Homes’ initiatives, right?
Join the momentum
If you are developing a new multifamily building or are planning upgrades to an existing one, electrification isn’t just about compliance, it is about positioning your project for long-term value.
Get in touch to learn more about maximizing your project’s profitability with incentives from Energy-Smart Homes.
