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.

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.

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 2026 2027
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 $4,250
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

The program does not accept projects converting from propane to electric.

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

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)
  • Be located in the PG&E®, or SCE®, or SDG&E® electric service territory and pay the Public Purpose Program Charge
  • Cap all gas lines to the building(s) applying for whole building electrification alteration incentives
  • 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) 2026 2027
Multifamily Low-Rise/ADU Whole Building Electrification Alterations
Each participating building/ADU 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).		 $2,200 $2,200
HP Dryer Bonus $250 $250
Electric Infrastructure Upgrade Bonus (per unit served)
Bonus can be awarded up to $600 and cannot exceed the total costs associated with the upgrade.		 $600 $600
Deed Restricted Affordable Multifamily Low-Rise Whole Building Alteration Incentives (per unit) 2026 2027
Deed Restricted Multifamily Low-Rise Whole Building Electrification Alterations
Each participating building must remove all gas appliances and each dwelling unit in that building must install heat pump space heating, heat pump water heating, electric cooking, and an electric dryer		 $2,200 $2,200
Induction Cooking Bonus  $500 $500
HP Dryer Bonus $250 $250
Electric Infrastructure Upgrade Bonus (per unit served)
Bonus can be awarded up to $600 and cannot exceed the total costs associated with the upgrade.		 $600 $600

The program does not accept projects converting from propane to electric.

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

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
      • Units with existing electric cooking qualify without upgrading to induction
      • Deed restricted multifamily affordable housing projects are exempt from the induction requirement but must install electric cooking (no gas)
      • Deed restricted multifamily affordable units will receive a bonus of $500 per unit when induction cooking is installed
    • 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
  • Cap all gas lines to the building(s) applying for whole building electrification alteration incentives
  • 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

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