New Construction

The Energy-Smart Homes program can help to maximize incentives without disrupting construction timelines for single family and multifamily low-rise projects.

New Construction

The Energy-Smart Homes program can help to maximize incentives without disrupting construction timelines for single family and multifamily low-rise projects.

Single Family, Duplex, Townhome, and ADU

Single family homes have just one dwelling unit. Duplex homes share a single wall with a dwelling unit on either side of the wall. Townhomes are single-family dwelling units constructed in a group of three or more attached units in which each unit extends from the foundations to the roof with open space on at least two sides. Accessory dwelling units (ADUs) are defined as a smaller, independent residential dwelling unit located on the same lot as a stand-alone single family or duplex home.

Multifamily Low-Rise

Multifamily low-rise buildings have four or more separate units connected by shared walls located in one building with three or fewer habitable stories above ground.

All-Electric New Construction Incentives

Energy-Smart Homes offers de-escalating incentives depending on the project’s year of completion. To be eligible for incentives, projects must be all-electric and meet all applicable federal, state, and local laws and codes.

All-Electric New Construction   2025 2026
 Single Family/Duplex/Townhome (per unit)   $3,000 $2,500
Multifamily/ADUs (per unit)   $1,600 $1,400

The deadline for projects to submit completed lot, building, or ADU documentation for 2025 incentives is Monday November 17, 2025. Lots, buildings, and ADUs submitting completion documentation after that date will be subject to 2026 incentive levels. Please reference the New Construction Project Document Checklist for completion document requirements.

Program funds are limited. Incentives are available on a first-come, first-served basis until funds are no longer available.

New Construction Program Prerequisites

New Construction Single Family, Duplex, Townhome

  • Communicating thermostats
  • Induction cooking
  • Heat pump water heating
  • Heat pump space heating
  • Segregated circuits
  • Install a 240-volt plug for electric vehicle charging infrastructure
  • Battery storage readiness
  • Thermostatic mixing valves

New Construction ADUs

  • Communicating thermostats
  • Induction cooking
  • Heat pump water heating
  • Heat pump space heating
  • Segregated circuits

New Construction Multifamily Low-Rise

  • Communicating thermostats
  • Induction cooking
  • Heat pump water heating
  • Heat pump space heating
  • Segregated circuits
  • Install 240-volt plugs for electric vehicle charging infrastructure
  • Thermostatic mixing valves

Communicating thermostats (not required if variable capacity heat pumps (VCHP) will be installed)

Energy-Smart Homes requires communicating thermostats in single family homes and low-rise multifamily dwelling units to have the following capabilities:

  • Programmable and Wi-Fi capable, allowing occupants to remotely adjust temperature with a smartphone or other device
  • Auto demand response (ADR) capability

Induction Cooking

Projects enrolling before December 31, 2024, can request an exception for the induction cooking requirement. Builders must self-certify on their application supply chain/availability issues to indicate that induction units are unavailable for the specifically enrolled project. Builders using this option must install at least a 40-amp circuit to support future upgrades. Incentives will be reduced by $700 for single family homes and $500 for multifamily homes using the exception.

Heat pump space heating

HVAC equipment installed must be heat pump technology. Technology that utilizes electric resistance as the primary source of heating is not eligible for the program.

Segregated circuits

Energy-Smart Homes requires the segregation of the following electrical circuits in single family homes and low-rise multifamily dwellings:

  • Lighting including exit and egress lighting and exterior lighting
  • HVAC systems and components including furnaces, package units, whole-house fans, chillers, air handling units, cooling towers, and circulation pumps associated with HVAC
  • Domestic and service water system pumps and related systems and components
  • Plug load including appliances rated less than 25 kVA
  • Charging stations for electric vehicles

When segregating the circuits, it is important to remember that no plug load, lighting load, or appliances (including but not limited to: dishwasher, dryer, refrigerator, clothes washer, oven, whole house fan, furnace/heat pump, water heater, sump pumps, etc.) can share a common circuit. This means that any one circuit can only serve either a lighting load, a plug load, or a single major appliance (ceiling fans with lighting should be counted as a lighting load).

The program envisions the use of conventional panelboards, fuses, circuit breakers, motor control centers, and other standard wiring methods for meeting the requirement to separate electrical loads. The requirement may also be achieved by a well-planned wiring approach, such as connecting all HVAC units to a single feeder from the service using a combination of through feeds and taps.

Install a 240-volt plug for Electric Vehicle charging infrastructure (not required for ADUs)

Energy-Smart Homes requires single family homes and multifamily buildings to comply with Section 4.106.4.2 of the California Green Building Standards Code, Title 24, Part 11 for space, location, size, and number of electric vehicles. The branch circuit and associated overcurrent protective device shall be rated to 40 amperes minimum. The builder shall install a 240-volt plug. The plug shall have a rating of 40 amperes according to the United States National Electrical Manufacturers Association (NEMA). The service panel or subpanel circuit director shall identify the overcurrent protective device designated for EV charging purposes as “EV READY” in accordance with the California Electrical Code. The receptacle or blank cover shall be identified as “EV READY” and shall be installed in accordance with the California Electrical Code.

Battery storage readiness (not required for ADUs or Multifamily Low-Rise projects)

Energy-Smart Homes requires new single-family homes to include a minimum 225-amp busbar, four backed-up circuits (two of which must be the refrigerator and bedroom receptacle outlet), and either a subpanel or split-bus main panel for those circuits.
NOTE: this is only required as a program prerequisite for projects applying under 2019 code, battery storage readiness is required for all new construction under 2022 code.

Thermostatic mixing valves (not required for ADUs)

Energy-Smart Homes requires all heat pump water heaters installed in single family homes and low-rise multifamily units to be equipped with thermostatic mixing valves.

Advanced Technology Bonuses

Advanced Technology Bonuses for New Construction Projects

To further advance the market towards clean energy technology and decarbonization, Energy-Smart Homes is offering Advanced Technology Bonuses to reduce design and installation costs and support Codes and Standards advancement.

New Construction Advanced Technology Bonus Measure Incentives per Enrolled Dwelling Unit Single Family Multifamily Low-Rise
Variable Capacity Heat Pump (VCHP)  $300 $300
Heat Pump without Electric Resistance   $300 $300
Integrated Heat Pump Space and Water Heating  $1,000 $1,000
Low Global Warming Potential (GWP) Heat Pump  $800 $800
Passive House Certification   $1,000 $400
Heat Pump Pool or Spa Heater  
(per installed piece of equipment)		 $1,000 $1,000
Verified ACCA Technical Manuals 
(per plan type)		 $400 $4,500
Central Heat Pump Water Heater Design 
(per project/developer and must include full MEP design, cost, and documentation)		 N/A $5,000
Central Heat Pump Water Heater Installation N/A $500

Program funds are limited. Incentives are available on a first-come, first-served basis until funds are no longer available.

Connect with us today to learn more about enrolling your all-electric residential new construction projects for Advanced Technology Bonuses: Connect Now!

Variable Capacity Heat Pump (VCHP)

Eligibility:

  • Variable capacity heat pump(s) with inverter technology
  • Single family and multifamily low-rise projects
  • CEE Tier 1 Efficiency Ratings (for applicable systems)

The program will pay the installation incentive upon receipt and verification of the following documents:

  • Spec sheet
  • AHRI sheet showing outdoor and indoor model numbers
  • Paid invoices
  • CF2R-MCH-33 form

Heat Pumps without Electric Resistance

Eligibility:

  • Single family and multifamily low-rise projects
  • The entire system must be installed with no electric resistance
  • Space heating must be capable of meeting the Manual J heating design load without the use of electric resistance heating
  • HPWH must be sized to DHW load of the home
  • CEE Tier 1 Efficiency Ratings (for applicable systems)

The program will pay the installation incentive upon receipt and verification of the following documents:

  • Spec sheet
  • AHRI sheet showing outdoor and indoor model numbers
  • Space heating: Completed Manual J using ASHRAE design temperature for the area showing heating and cooling design loads
  • Paid invoices

Integrated Heat Pump Space and Water Heating

Eligibility:

  • Equipment must be complaint with the California Energy and Mechanical Code
  • Secondary heat pump can be used to add cooling to the system
  • Single family and multifamily low-rise projects

The program will pay the installation incentive upon receipt and verification of the following documents:

  • Spec sheets for heat pump, water tank(s), and heating/cooling system
  • AHRI sheet showing outdoor and indoor model numbers (if applicable)
  • Paid invoices

Low-Global Warming Potential (GWP) Heat Pump 

Eligibility:

  • The GWP of the refrigerant used must be less than 750
  • Single family and multifamily low-rise projects
  • Installations must follow applicable safety codes: 2024 IMC Chapter 11 and ASHRAE Standard 15

The program will pay the installation incentive upon receipt and verification of the following documents:

  • Spec sheet showing refrigerant used
  • Paid invoices
  • Space heating and conditioning: AHRI sheet showing outdoor and indoor model numbers

Passive House Certification 

Eligibility:

  • Single family and multifamily low-rise projects

The program will pay the installation incentive upon receipt and verification of the following documents:

  • Copy of Passive House Certificate from PHI or PHIUS
  • Copy of Passive House submission documents

Heat Pump Pool or Spa Heater (per installed piece of equipment)

Eligibility:

  • Only one heat pump is allowed per pool or spa. Multiple compressor systems are not allowed due to noise level and cost.
  • Projects are eligible for two incentives if one heat pump is installed for the pool and one heat pump is installed for the spa
  • Electric resistance is not allowed
  • Single family and multifamily low-rise projects

The program will pay the installation incentive upon receipt and verification of the following documents:

  • Spec sheet showing a minimum COP of 4.0
  • Paid invoices
  • Size of pool or spa (gallons)
  • Photo of the pool or spa cover

Verified ACCA Technical Manuals including Manual J, Manual S, and Manual D

Eligibility:

  • Single family and multifamily low-rise projects

The program will pay the installation incentive upon receipt and verification of the following documents:

  • Completed Manual J, Manual S, and Manual D that match site conditions
  • Proof that the calculations were prepared by a mechanical engineer or a mechanical contractor or someone qualified to do so in accordance with Division 3 of the Business and Professions Code of the State of California 

Central Heat Pump Water Heater Design Incentive/Installation Incentive

Eligibility:

  • Multifamily low-rise per building type

The program will pay the installation incentive upon receipt and verification of the following documents:

  • Current Gas Water Heater Design quote including:
    • Description of Part
    • Material Price
    • Labor Cost
  • Central Heat Pump Water Heater Design for the provided Professional Engineer (PE) stamped system design, with the following:
    • Description of part
    • Price
    • Quantity/units
    • Final pricing
    • Quote date
    • Add/deduct alternate to establish the incremental cost of the work
  • Associated dimensioned plan sets stamped by a licensed PE. At minimum, the following should be provided:
    • Plumbing
    • Architectural
    • Mechanical

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