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.

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)

Electric or 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 2022  2023 2024 2025
Single Family Whole Building Electrification Alterations
Each single family property type must install heat pump space heating, heat pump water heating, electric or induction cooking, and an electric dryer

$5,500  $5,500  $4,250 $3,750
HP Dryer Bonus $400 $400 $250 $250
Infrastructure Upgrade Bonus $1,000 $1,000 $1,000 $1,000

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 (Ductless mini-split heat pumps or residential central heat pumps SEER 15 or greater, HSPS 8.7 or greater)
    • Heat pump water heating (multifamily low-rise can opt for in-unit or central system heat pump water heating)
    • Electric or 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) 
  • Be located in the PG&E®, or SCE®, or SDG&E® electric service territory and pay the Public Purpose Program Charge 
  • Have work completed by a licensed contractor 
  • Meet minimum alteration criteria and equipment specifications 
  • Complete and sign an online program participation agreement, including agreeing to program Terms and Conditions 
  • Agree to not receive financial incentives for the same measures or scope of work from other CPUC resource-funded programs 
  • Adhere to all applicable federal, state, and local laws and codes 

Multifamily Low-Rise/ADU Whole Building Electrification Alterations Incentives

Multifamily Low-Rise/ADU Whole Building Alterations Incentives (per unit) 2022  2023 2024 2025
Multifamily Low-Rise/ADU Whole Building Electrification Alterations
Each dwelling unit in each enrolled building must install heat pump space heating, heat pump water heating, electric or induction cooking, and an electric dryer

$3,550  $3,550  $2,200 $2,000
HP Dryer Bonus $400 $400 $250 $250
Infrastructure Upgrade Bonus (per unit served) $600 $600 $600 $600

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 (Ductless mini-split heat pumps or residential central heat pumps SEER 15 or greater, HSPS 8.7 or greater)
    • Heat pump water heating (multifamily low-rise can opt for in-unit or central system heat pump water heating)
    • Electric or 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) 
  • Be located in the PG&E®, or SCE®, or SDG&E® electric service territory and pay the Public Purpose Program Charge 
  • Have work completed by a licensed contractor 
  • Meet minimum alteration criteria and equipment specifications 
  • Complete and sign an online program participation agreement, including agreeing to program Terms and Conditions 
  • Agree to not receive financial incentives for the same measures or scope of work from other CPUC resource-funded programs 
  • Adhere to all applicable federal, state, and local laws and codes 

Multifamily Low-Rise Central Heat Pump Water Heater Targeted Measures

To further advance the market towards clean energy technology and decarbonization, Energy-Smart Homes is offering grants defray advance technology design cost and implementation in new and existing multifamily low-rise buildings and support Codes and Standards research.

Central Heat Pump Water Heater Target Measures for Multifamily Low-Rise Buildings Incentive
Central System Design (per project/developer)
Full MEP design and documentation
$20,000
Central System Installation (per installed unit) $1,500

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 how to secure Central Heat Pump Water Heater design and installation incentives for your multifamily low-rise property! Connect Now

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