New Construction Electrification Program
Supporting All-Electric Housing
Overview
The New Construction Electrification Program will provide housing developers and homeowners with incentives to build all-electric housing. Housing projects must be built to all-electric standards for all energy utility needs including but not limited to water heating, space heating, and cooking appliances. Incentives are determined on a per unit basis and will be provided “downstream” to developers and homeowners upon successful completion of the project.
Projects must be completed between August 1, 2024, and September 30, 2025.
What Projects Are Eligible?
- Affordable Housing Developments
- Farmworker Housing
- Market-rate Housing
- Accessory Dwelling Units (ADUs)
- Single-family Disaster Rebuilds
Benefits
- All-electric housing is cheaper and safer to build.
- Building occupants benefit from cleaner indoor air and ultra-high efficiency appliances that provide greater safety and comfort.
- All electric housing reduces greenhouse gas emissions and criteria air pollutants by eliminating natural gas.
Eligibility
Housing Developers
A business entity whose core business is housing, real estate, and/or property development. All eligible projects must be built to all-electric standards for all energy utility needs. Projects must be enrolled in 3CE electrical service upon completion.
Agriculture Employee Housing Developer
A business entity whose core business is either in the agricultural sector or supporting the agricultural sector employee housing market. The housing project must be enrolled in 3CE electrical service upon completion. The developer must build a minimum of four farmworker housing units under one development.
Private Homeowners
A residential customer enrolled in 3CE electrical service and in good standing who is building a single-family home or an Accessory Dwelling Unit (“ADU”). All ADUs are eligible, including existing building additions and alterations.
Single-Family Disaster Rebuilds
Single-family home rebuild projects that result from a Governor-declared natural disaster occurring on or after January 2020 are eligible.
Rebates
| Project Type | Incentive Amount | Incentive Limit |
|---|---|---|
| Affordable Housing | $3,000/unit | Up to $250,000 per project |
| Farmworker Housing | $3,000/unit | Up to $250,000 per project |
| Market-rate Housing | $2,000/unit* | Up to $200,000 per project |
| Accessory Dwelling Unit | $5,000/unit | Up to $10,000 per project |
| Single-family Disaster Rebuild | $15,000/unit | Up to $15,000 per project |
Steps
- To apply, click the Application tab.
- Applications for enhanced incentives for disaster rebuild projects must provide proof that the previous structure was Red Tagged as a result of a natural disaster.
- Applications will be submitted upon project completion. The application will be reviewed by 3CE staff and funds distributed if the application meets the following conditions:
- 3CE staff confirms the building/s are or will be enrolled in 3CE electricity service.
- Applicant submits the following documents indicating that the development was completed as an all-electric building:
- Certificate of Occupancy -OR- Notice of Completion -AND- Written notice from the applicable Building Inspector confirming that no gas infrastructure was built throughout the building and construction site.
Resources
ADUs tend to be significantly less expensive to build than new detached single-family homes and offer benefits that address common development barriers, such as environmental quality.
The Building Initiative for Low-Emissions Development (BUILD) Program is designed to provide technical assistance and incentives for new all-electric low-income residential buildings that reduce GHG emissions.
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 is an all-in-one solution that offers incentives for single family, duplex, townhome, multifamily low-rise, alterations, and accessory dwelling units.
The Energy-Smart Homes Program is available to utility customers in the Pacific Gas and Electric Company (PG&E®), San Diego Gas & Electric Company (SDG&E®), and Southern California Edison Company (SCE®) electric territories.
The program supports California’s focus on building electrification to meet its climate objectives.
The California Energy Design Assistance program provides a complimentary and comprehensive analysis of different energy efficiency options and lays out their potential energy savings and incentives tailored to your specific project.
Our dedicated team of energy specialists listen to your project goals and customize energy efficiency options to maximize savings and incentives.
The CPUC’s Self-Generation Incentive Program (SGIP) provides incentives to support existing, new, and emerging distributed energy resources. SGIP provides rebates for qualifying distributed energy systems installed on the customer’s side of the utility meter. Qualifying technologies include wind turbines, waste heat to power technologies, pressure reduction turbines, internal combustion engines, microturbines, gas turbines, fuel cells, and advanced energy storage systems.
