The California Energy-Smart Homes Program is a residential new construction and alterations program that provides incentives to adopt advanced energy measures and transition to all-electric construction. The program supports California’s focus on building electrification to meet its climate objectives.
Qualifying All-Electric Residential Subsectors
- Single Family, Duplex, and Townhome
- Multifamily low-rise (three or fewer stories)
- Additions (greater than 700 sq. feet)
- Alterations
- Accessory dwelling units (ADUs)

• Single Family, Duplex, and Townhome

• Multifamily low-rise (three or fewer stories)

• Additions (greater than
700 sq. feet)
• Alterations
• Accessory dwelling units (ADUs)
Eligibility
Energy-Smart Homes is available to utility customers in the San Diego Gas & Electric Company (SDG&E®), Pacific Gas and Electric Company (PG&E®), and Southern California Edison Company (SCE®) territories.
Prerequisites
New construction single family (excluding ADUs and additions), duplex, townhouse, and multifamily low-rise projects must install:
Communicating thermostats
- Segregated circuits
- Electric vehicle charging infrastructure pre-wiring
- Battery storage readiness (Single Family/Duplex/
- Thermostatic mixing valves
New construction projects must achieve an energy
efficiency delta EDR of ≥1.
Alterations to existing single family, duplex, townhouse, and multifamily low-rise projects require:
Conversion of all gas appliances and equipment to
electric systems including:
- Heat pump space heating (required and incentivized)
- Heat pump water heating (required and incentivized)
- Induction cooktops (required, not incentivized)
- Heat pump clothes dryers (incentivized, not required)
- Removal of gas meters (but not natural gas piping
infrastructure)
Participation Requirements for All-Electric Projects
Receive utility service from SDG&E®, PG&E®, or SCE® and pay the Public Purpose Program (PPP) Charge
- Meet minimum program pre-requisites and energy efficiency requirements
- Submit 2019 Title 24 (T24) energy models (not required for alteration projects) authored by a professional that holds CABEC’s 2019 residential certified energy analyst (CEA) designation
- Not receive incentives for the same measures or scope of work from other public purpose programs
- Adhere to all applicable federal, state, and local laws and codes
Incentives
Base Incentive Delta EDR≥1.
| New Construction Project Type | 2022 | 2023 | 2024 | 2025 | Escalating Incentive for each .1 EDR over |
|---|---|---|---|---|---|
| Single Family/Duplex/Townhome | $3,500 | $2,900 | $2,500 | $2,200 | $10 |
| Multifamily Low-Rise | $2,200 | $1,800 | $1,500 | $1,200 | $5 |
| Additions and ADUs | $1,750 | $1,450 | $1,250 | $1,100 | $5 |
| Alterations | Incentive |
|---|---|
|
Heat Pump Clothes Dryer Replacing Vented Gas Clothes Dryer |
$500 per heat pump dryer |
|
Ductless Mini-Split Heat Pump* Replacing Gas Wall Furnace with or w/o Window Air Conditioner |
$90 per ton |
|
Heat Pump Water Heater Replacing Program Eligible Storage or Tankless Natural Gas Water Heater Reference the program handbook for a full list of eligible Heat Pump Water Heater fuel-substitution |
$450 per Heat Pump Water Heater |
Program funds are limited. Incentives are available on a first-come, first-served basis until funds are no longer available.
*SEER 15 or greater, HSPF 8.7 or greate
For more information about California
Energy-Smart Homes please contact us at:
Toll-free: (833) 987-3935
Email: caenergysmarthomes@trccompanies.com
Website: caenergysmarthomes.co


