Bay Area leaders roll out $85M a year for home electrification

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…

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