Assembly Bill 209 (Committee on Budget, Chapter 251, Statutes of 2022) directs the California Energy Commission (CEC) to establish a statewide incentive program as part of the Equitable Building Decarbonization (EBD) Program. At least half of the EBD Statewide Incentive Program funding must benefit Californians living in an underresourced community.
To implement the statutory direction quickly and account for state budget reductions, the CEC allocated $30 million in 2024 to leverage the existing GoGreen Home Energy Financing Program administered by California Alternative Energy & Advanced Transportation Financing Authority (CAEATFA). GoGreen Home facilitates home energy efficiency and decarbonization retrofits by leveraging private capital. This is achieved by providing a loan loss reserve, which reduces risk for private lenders and allows them to offer more attractive loan terms (such as lower interest rates and longer repayment terms) and to provide loans to customers who would not otherwise qualify. Additionally, the program includes an interest rate buy down, which will enable lenders to offer zero percent interest loans to low-income households in disadvantaged and low-income communities for heat pump HVAC or heat pump water heater installations.
The EBD GoGreen Home Program collaboration expands the GoGreen Home Program to include nearly all Californians and provides efficiency upgrades, including heat pump HVACs, heat pump water heaters, and other energy improvements.
The loan loss reserve launched in December 2024, and the interest rate buy down launched in April 2025.
In 2024, CEC launched the federally-funded Home Electrification and Appliance Rebates (HEEHRA) Phase I residential retrofit program to offer incentives for heat pump water heaters and other efficient equipment to low- and moderate-income households. While HEEHRA is not a component of the EBD Program, the HEEHRA Phase I program goals are complementary in that incentives are available statewide, support low-carbon building technologies, target low- and moderate-income households, and improve energy efficiency in a home.
For more information, please visit the GoGreen Financing website.
GoGreen Home, administered by CAEATFA, facilitates attractive and affordable, lower cost financing for residential energy upgrades to support California’s energy efficiency, building decarbonization, and greenhouse gas reduction goals.
GoGreen Home provides a loan loss reserve that enables participating lenders to offer credit approvals to more borrowers, reduced interest rates, extended term lengths, and access to larger loan amounts compared with the lenders’ standard products. Residents can use loans to fund the installation of all-electric appliances, energy efficiency upgrades, and weatherization measures.
In addition to funding the loan loss reserve, the Equitable Building Decarbonization Statewide Incentive Program funds an interest rate buydown that allows participating lenders to offer even further reduced interest rates to low-income households in disadvantaged and low-income communities.
- Who is eligible for the EBD Statewide Incentive Program?
- Funding provided by the Equitable Building Decarbonization Statewide Incentive Program expands GoGreen Home to residents served by publicly owned electric utilities, such as Sacramento Municipal Utilities District and Los Angeles Department of Water and Power.
- Further reduced interest rates of 0%-2% are available statewide for low-income households located in either low-income or disadvantaged communities, for projects that include a heat pump for heating and cooling or a heat pump water heater.
- Customers of California’s large investor-owned electric utilities (Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric) are also eligible for the program through other funding. For more information on eligibility and how to qualify, visit the GoGreen Financing website.
- What types of equipment or projects are eligible for the program?
- Examples include: Energy efficient electric appliances, heat pump HVAC and water heaters, insulation, smart thermostats, electric vehicle chargers, solar photovoltaic paired with battery storage systems
- A full list of eligible measures supported by the EBD Statewide Incentive Program.
- How do I apply for GoGreen Financing?
- Please visit GoGreen Home to learn more about how to apply.
For more information on HEEHRA Phase I, please visit the Inflation Reduction Act Residential Energy Rebate Programs website.