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.

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Hope Fasching Headshot
Hope Fasching
Associate
Ms. Fasching is a green hydrogen policy expert and clean energy advocate, having spent several years working in clean energy consulting and policy development. Prior to joining Caliber, Ms. Fasching served as a Consultant and Senior Policy Analyst at Strategen, a clean energy strategy consulting firm, and also helped lead the Green Hydrogen Coalition. In this role, she worked extensively with the California Public Utilities Commission (CPUC), California Energy Commission (CEC), and California Air Resource Board (CARB) on various clean energy topics. She also tracked relevant clean energy legislation at the California State Legislature. Ms. Fasching also worked with the Governor’s Office of Business and Economic Development (GO-Biz) and other key stakeholders on California’s clean hydrogen hub. Ms. Fasching holds a Masters in Public Policy from the University of California, San Diego, with a focus on energy policy and econometric analysis. She also holds a Bachelor of Arts from the University of California, Los Angeles in Political Science.
Hope Fasching Headshot

Hope Fasching

Associate

Ms. Fasching is a green hydrogen policy expert and clean energy advocate, having spent several years working in clean energy consulting and policy development.

Prior to joining Caliber, Ms. Fasching served as a Consultant and Senior Policy Analyst at Strategen, a clean energy strategy consulting firm, and also helped lead the Green Hydrogen Coalition. In this role, she worked extensively with the California Public Utilities Commission (CPUC), California Energy Commission (CEC), and California Air Resource Board (CARB) on various clean energy topics. She also tracked relevant clean energy legislation at the California State Legislature. Ms. Fasching also worked with the Governor’s Office of usiness and Economic Development (GO-Biz) and other key stakeholders on California’s clean hydrogen hub.

Ms. Fasching holds a Masters in Public Policy from the University of California, San Diego, with a focus on energy policy and econometric analysis. She also holds a Bachelor of Arts from the University of California, Los Angeles in Political Science.

Hope Fasching Headshot

Hope Fasching

Associate

Ms. Fasching is a green hydrogen policy expert and clean energy advocate, having spent several years working in clean energy consulting and policy development. Prior to joining Caliber, Ms. Fasching served as a Consultant and Senior Policy Analyst at Strategen, a clean energy strategy consulting firm, and also helped lead the Green Hydrogen Coalition. In this role, she worked extensively with the California Public Utilities Commission (CPUC), California Energy Commission (CEC), and California Air Resource Board (CARB) on various clean energy topics. She also tracked relevant clean energy legislation at the California State Legislature. Ms. Fasching also worked with the Governor’s Office of usiness and Economic Development (GO-Biz) and other key stakeholders on California’s clean hydrogen hub. Ms. Fasching holds a Masters in Public Policy from the University of California, San Diego, with a focus on energy policy and econometric analysis. She also holds a Bachelor of Arts from the University of California, Los Angeles in Political Science.