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

Multifamily Low-Rise

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   2024 2025 2026
 Single Family/Duplex/Townhome (per unit)   $3,000 $3,000 $2,500
Multifamily/ADUs (per unit)   $1,600 $1,600 $1,400

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

*Exceptions are available based on manufacturer availability

New Construction ADUs

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

*Exceptions are available based on manufacturer availability

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

*Exceptions are available based on manufacturer availability

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 a 50-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.

NEW FOR MULTIFAMILY LOW-RISE PROJECTS

Central Heat Pump Water Heater Targeted Measures

Central Heat Pump Water Heater Targeted Measures Incentive
Central System Design (per project/developer)
Full MEP Design and documentation
$5,000
Central System Installation (per installed unit) $500

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