Alterations

The Energy-Smart Homes program promotes adoption of advanced energy measures and the transition to all-electric construction. The whole building electrification program aligns with California’s 2022 code and state efficiency decarbonization goals and trajectories, and provides property owners incentives for single family, duplex, townhome, ADU, or multifamily low-rise electrification alterations.

Effective March 18, 2024, the program will not accept new alterations projects converting from propane to electric until further notice.

Energy-Smart Homes Whole Building Electrification

Whole Building Electrification alterations to existing single family and multifamily low-rise projects require a change in technology that includes conversion of all gas appliances and equipment to electric systems (replacing fossil fuel combustion equipment with heat pumps), including:

Heat pump space heating

Heat pump water heating
(In-unit or central heat pump water heater)

Induction Cooking
(Projects with existing electric cooking qualify without upgrading to induction cooking)

Electric or heat pump clothes dryers
(Bonus incentives available for heat pump clothes dryers)

Whole Building Electrification Alterations Incentives

Single Family Whole Building Electrification Alterations Incentives   2024 2025
Single Family Whole Building Electrification Alterations
Each property must install heat pump space heating, heat pump water heating, induction cooking, and an electric dryer (Properties with existing electric cooking qualify without upgrading to induction cooking).

  $4,250  $3,750
HP Dryer Bonus   $250 $250

Electric Infrastructure Upgrade Bonus (per unit served)
Bonus can be awarded up to $1,000 and cannot exceed the total costs associated with the upgrade.

  $1,000 $1,000

Program funds are limited. Incentives are available on a first-come, first-served basis until funds are no longer available. Projects must submit a full application package that includes all verification documents, by November 1 to receive that program year’s incentive amount. 

Whole Building Electrification Alteration Eligibility Requirements

To be eligible for Whole Building Electrification Alteration incentives, existing property owners must:

  • Complete whole building electrification alterations on an existing single family dwelling unit or multifamily low-rise building including:
    • Heat pump space heating (Mini-split heat pumps or residential central heat pumps SEER 15 or greater, HSPF 8.7 or greater) NOTE: HVAC equipment must utilize heat pump technology. Technology that utilizes electric resistance as the primary source of heating is not eligible.
    • Heat pump water heating NEEA Tier 2 or greater (multifamily low-rise can opt for in-unit or central system heat pump water heating)
    • Induction Cooking (Properties with existing electric cooking qualify without upgrading to induction cooking).
    • Electric clothes dryer (Bonus incentives are available for heat pump clothes dryers) NOTE: Heat pump clothes dryers do not require installation by a licensed contractor
    • Infrastructure upgrade (Not required, but bonus incentives are available)