California Energy-Smart Homes All-Electric Residential Program

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)


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.


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

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


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

Screenshot 4

For more information about California
Energy-Smart Homes please contact us at:
Toll-free: (833) 987-3935