Bay Area leaders roll out $85M a year for home electrification
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SF Environment Department director Tyrone Jue. Photo: Courtesy of the San Francisco Environment Department
San Franciscans are about to have more options for replacing their gas water heater as regional officials roll out about $85 million a year in rebates and incentives across the Bay Area, including $41 million for heat pumps.
The big picture: Residents facing the eventual replacement of a gas water heater could have more financial help paying for an electric alternative as the Bay Area moves towards electrifying homes and buildings to reduce its carbon footprint.
- The money comes from a patchwork of cities, utilities and state and regional programs rather than a single new fund.
- Some incentives can be combined, meaning the amount a household can receive depends on where they live, the utility provider and, in some cases, income.
Zoom in: In San Francisco, CleanPowerSF customers can receive a $1,200 bill credit for installing a heat-pump water heater, per city officials.
- Smaller credits are available for electric stoves and dryers.
Between the lines: The assistance is arriving as the Bay Area Air District implements Rule 9-6, which sets a zero-nitrogen-oxide emissions standard for newly sold and installed water heaters.
- The requirement does not force homeowners to remove working gas water heaters. Instead, it applies when covered equipment is replaced.
- Electric models currently provide the main commercially available option for meeting the zero-NOx standard.
What they're saying: "With more than $80 million being invested annually across the region, we have a once-in-a-generation opportunity to lower barriers to electrification, while creating healthier homes and reducing climate pollution across the Bay Area," Tyrone Jue, director of the city's Environment Department, said at a Tuesday press conference.
Catch up quick: The first phase of the rule was adopted to cover smaller water heaters manufactured beginning Jan. 1.
- Air District officials have proposed pushing that date to Jan. 1, 2028, while creating exemptions for some low-income property owners and homes where electrical capacity, wiring or space makes conversion particularly difficult or expensive.
- The board is expected to consider pushing that date back later this year.