$47K in Green Building Incentives
Two state programs, smart equipment choices, and how we tripled our initial rebate estimate
The Programs
California gives money back to builders who make all-electric homes. Two programs can be combined for more money:
- California Energy-Smart Homes -- pays you for beating the state energy code
- California Electric Homes Program (CalEHP) -- pays you for building all-electric (no gas)
We signed up for both. Our application number: APP-7472. All 5 ADUs are enrolled.
How the Money Grew
The first estimate was $9,750 total. But by picking the right equipment, the potential grew to nearly five times that:
| Rebate Category | Per Unit | All 5 Units |
|---|---|---|
| CalEHP base (our area qualifies for more) | $1,750 | $8,750 |
| Energy-Smart Homes base | $1,000 | $5,000 |
| Special heat pump bonus | $400+ | $2,000+ |
| Mechanical package | $300 | $1,500 |
| Smart water heater bonus | $600 | $3,000 |
| Battery storage | TBD | TBD |
| Low-pollution refrigerant | $400 | $2,000 |
| Possible total | $22,250 - $47,500 |
One reason we qualify for more: our property is in a Hard-to-Reach area. That's a state designation that boosts the CalEHP base incentive from $1,500 to $1,750 per unit.
The Equipment That Qualifies
Every piece of equipment was chosen with rebates in mind:
Air Conditioning: Daikin Mini-Splits
- These are "variable capacity heat pumps." They adjust their power based on what's needed instead of just turning on and off.
- This qualifies for a special bonus AND skips the requirement for an expensive smart thermostat.
Water Heater: Rheem ProTerra (50 gallon)
- This heat pump water heater has a special port called CTA-2045 EcoPort
- That port lets the water heater talk to the power grid
- Having that port unlocks a $600 per unit rebate. That's $3,000 for choosing the right water heater model.
Batteries: Tesla Powerwall 3 + Enphase IQ Battery 5P
- Battery storage can unlock even more rebate money
- We have batteries on every unit
The Five Requirements
To qualify for the base incentive, each unit needs:
- Heat pump HVAC (no gas heating, no electric resistance)
- Heat pump water heater (no gas or standard electric)
- Induction cooktop (must be built-in, not portable)
- Separated electrical circuits (lights on their own circuits, outlets on their own)
- Smart thermostat (WiFi-connected, wall-mounted) -- or use variable capacity heat pumps to skip this
The Energy Models
Each ADU needs a computer energy model created by a Certified Energy Analyst (CEA). Our CEA is Brian Hansen at Technical Energy.
These models had to be updated several times:
- First version during the design phase
- Updated to add solar and battery info
- Updated to change from Mitsubishi to Daikin HVAC (after we switched our subcontractor)
- Updated to use the same 50-gallon water heater in all 5 units
Each change meant Brian had to open special software, make edits, and rerun the energy calculations.
Important Deadlines
- Sign up at least 8 weeks before the city says the building is done
- All paperwork and approvals must be in by November 15 of the program year
- A special inspector (called a HERS Rater) has to visit the property
The Lesson
Don't pick equipment and then check for rebates. Pick equipment because of the rebates. When you choose the right water heater, the right heat pump, and the right batteries from the start, a $9,750 estimate turns into $47,500. The extra cost of rebate-eligible equipment is small compared to the money you get back.