Incentive Program for New Construction

Are you a builder or developer who is working on a new construction project? If so, the Energy-Smart Homes All-Electric or Mixed Fuel Residential Programs could help you lower your project costs. These programs were created to support California’s energy efficiency policy goals and help mitigate climate change.


Energy-Smart Homes Program At A Glance
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• Incentive program to encourage building better than code minimum
• Requires a Certified Energy Analyst (CEA) do your Title 24 energy modeling (like us!)
• Incentives are designed to encourage electric buildings
• Incentives also for other elements that save energy
• Incentives based on Efficiency Energy Design Rating (EDR) score that our energy modeling calculates for you
• Base incentive for All-electric new home completed in 2022 is $3,500 and for Mixed fuel new home is $800
• Incentives can cover any added cost of electric appliances with some left over for other upgrades
• Incentives also available for additions and alterations (more information on these incentives coming soon)

What are the eligibility requirements?

Both programs serve new single-family residences and duplexes, manufactured housing, multifamily low-rise buildings (three stories or less), and accessory dwelling units (ADUs). Participants must be customers of SDG&E, PG&E, SCE, or SoCal Gas and the builder/developer must pay the Public Purpose Program Charge. All new construction projects are required to install communicating thermostats, segregated circuits, battery storage readiness, thermostatic mixing valves, and electric vehicle (EV) charging infrastructure pre-wiring in accordance with CALGreen Building Code EV ready requirements.

All new construction projects must also achieve an efficiency EDR of greater than or equal to one EDR point above standard in their Title 24 compliance for the All-Electric program and two points above standard for the Mixed Fuel program. There are no incentives for solar measures, so eligibility is determined by efficiency EDR only. To satisfy this eligibility requirement your Title 24 compliance must be completed by a CEA. If you are interested in this program and in need of a Title 24 consultant, contact us! We are CEA certified and happy to help you with the compliance process.

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What kinds of incentives are there?

Incentive amounts differ depending on the type of project and year of completion. The incentives are paid on an escalating scale with a bonus incentive for each additional 0.01 EDR above the entry requirement. Base incentives de-escalate 10% annually based on completion year in the All-Electric program. Incentive amounts for new construction in the All-Electric program are listed below.

​The incentive amounts for new construction in the Mixed Fuel program are listed here:

Case Study: All-Electric New Construction

To see what kinds of incentives a project would be eligible for, we will look at a real, all-electric, new construction project. Our case study is a 2,000 sq ft single family home in Climate Zone 11. It has a central split heat pump, a heat pump water heater, and all-electric appliances.

The project has a Title 24 compliance delta efficiency EDR of 4.1, meaning that it surpasses the required 1-point difference. Assuming this project is to be completed in 2022, it would receive $3,500 in incentives, plus $10 for each 0.1 EDR points over the required delta of 1. This means it would receive $3,500 + ($10 x [3.1/0.1]) or $3,810 total.

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How do I apply?

Before you start the application process, make sure your project meets all the eligibility criteria. Part of that is getting your Title 24 compliance done by a CEA (like us)! Contact us and we will get back to you with a quote.
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Once you have determined you are eligible, you can start the application process by logging in to the participant portal (https://CAenergysmarthomes-OLA.Capturesportal.com) and setting up an account where you can submit application documents and a program participation agreement. If needed, you can also contact Energy-Smart Homes staff at caenergysmarthomes@trccompanies.com and they will assist you with your application or complete the inquiry form at www.caenergysmarthomes.com to have an Energy-Smart Homes representative follow up with you.