$58 Million in Incentives Now Available for New, All-Electric Climate-Friendly Homes

For Immediate Release: July 11, 2023

SACRAMENTO – Builders and developers can tap into $58 million in funds from the California Energy Commission (CEC) to lower the building costs of new climate-friendly residences.

Now accepting applications, the California Electric Homes Program (CalEHP) helps advance the state’s energy efficiency goals, including reducing greenhouse gas emissions from buildings by spurring significant market adoption of all-electric construction and on-site energy storage.

The program offers financial incentives and technical assistance to builders and developers of new, market-rate homes with all-electric appliances and equipment. Funds are available on a first-come, first-served basis, with the program timeline planned for the next five years — unless funds are fully reserved.

In 2023, incentives for multifamily and single-family dwellings start at $1,750 and $3,500, respectively, per residential unit. Additional incentives are available based on geographic location and the installation of above-code measures such as energy storage.

The program addresses climate change by encouraging the use and acceptance of all-electric construction practices and focusing on energy savings. Participating projects are required to install:

• Heat pumps for space and water heating
• Induction cooking
• Thermostatic-mixing valves
• Segregated circuits
• Communicating thermostats.

The CalEHP website has information on incentives, technical assistance and building project requirements as well as links to an online application and program contact information.

“Electricity is the backbone of California’s clean energy transition. All-electric buildings are simply a better product. They are healthier for occupants and save energy by using the most efficient technologies,” CEC Commissioner J. Andrew McAllister said. “CalEHP is helping accelerate all-electric construction so that more Californians can experience the benefits of low-emission living.”

CalEHP is a sister program to the CEC’s Building Initiative for Low-Emissions Development (BUILD) Program that offers $60 million in financial incentives and technical assistance to builders of new, all-electric homes for low-income residents. Each eligible developer can use up to 300 hours of free building electrification technical assistance and up to $2 million in incentive monies. To date, BUILD has awarded $10.8 million for 21 low-income multifamily projects, with another $23 million requested for 60 projects.

Together, these programs support the wider adoption of advanced building design and all-electric technologies in market-rate and affordable housing. Wider adoption helps increase market share and lowers the cost for these technologies.

The barriers to building decarbonization are falling in California, thanks to new developments in technology, updates to the state building energy efficiency standards’ Energy Code, and programs such as CalEHP and BUILD. For homeowners of existing buildings, funding from the CEC’s Equitable Building Decarbonization Program — which will pay for low- and no-cost retrofits and incentives — and laws such as the Inflation Reduction Act address the same issue.

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About the California Energy Commission
The California Energy Commission is leading the state to a 100 percent clean energy future. It has seven core responsibilities: developing renewable energy, transforming transportation, increasing energy efficiency, investing in energy innovation, advancing state energy policy, certifying power plants, and preparing for energy emergencies.