A.O. Smith

A.O. SMITH

Incentivizing the Electrification of California Homes and Businesses

THE PROBLEM:

The State of California is increasingly moving towards full electrification of residential and commercial buildings. The 2022 Energy Code requires all new homes built in California to be electric-ready. At the same time, more than 50 local jurisdictions have passed ordinances to require all new construction to be all-electric, and some cities have rules to require alterations or additions to existing buildings to be all-electric too. The leading edge of electrification efforts has centered around upgrading particular appliances from gas to electric, specifically heat pump water heaters (HPWH). The typical HPWH is significantly more expensive than a transitional natural gas water heater. So, any requirements to electrify must bridge this financial gap.

THE CLIENT:

A. O. Smith Corporation is one of the world’s largest manufacturers of water heating technology and the largest in North America, as well as a global leader in water treatment solutions.

THE SOLUTION:

Caliber worked with a team of nonprofits, industry, and environmental organizations as government advisors to pass legislation to allocate approximately $44 million for incentives for HPWHs as part of California’s Self Generation Incentive Program (SGIP).

As clean tech business advocates, A. O. Smith and Caliber then led an effort with this coalition and the California Public Utilities Commission (CPUC) to design a workable incentive program that would provide an up to $7,300 incentive payment for installing HPWHs. As of 2022, the HPWH Program incentive amount is currently $84 million by the California Public Utilities Commission.

CASE STUDY

TOPIC / KEYWORDS:

Building Decarbonization, Distributed Energy Resources, Regulations Advocacy, Electrification, Heat Pump, Water Heaters, SGIP, Incentives, Clean Tech Advocacy

QUICK FACTS:

Secured $84 million in funding for building electrification.

Effectively worked with regulators and other stakeholders to design a workable and durable incentive program to kickstart the market transition from gas to electric water heaters.

As of 2022, Californians installing heat pump water heaters may receive an incentive of up to $7,300.