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California, US

California Electric Homes Program

Supporting the Decarbonization of Residential New Construction Practices

TRC is partnering with the California Energy Commission to support all-electric residential new construction practices and energy storage installation across the state.

The California Electric Homes Program (CalEHP), administered by TRC and the California Energy Commission (CEC), provides technical assistance and financial incentives to residential developers and builders constructing new, market-rate homes with all-electric appliances and equipment. The program promotes all-electric new construction practices and energy storage and supports California’s advanced energy efficiency policy goals.

Project Background

Launched in 2023, CalEHP provides $58 million in funding for all-electric residential new construction projects and energy storage measures across the entire state of California. Builders and developers can tap into these funds from the CEC to lower building costs of new energy-efficient homes.
Eligible all-electric new construction project types include:

  • Single family homes, including duplexes, triplexes, townhomes, and accessory dwelling units (ADUs)
  • Multifamily homes, including low-rise, high-rise, and condominiums
  • Manufactured homes

The inclusion of manufactured homes is notable in that it can help spur the development of energy-efficient, all-electric housing in sites being rebuilt after wildfires and other disasters, helping affected residents return home quickly with financial support from incentives. The CalEHP program requires manufactured homes be built to ENERGY STAR standards, resulting in long-term reductions in energy costs for inhabitants. The inclusion of accessory dwelling units (ADUs) in the program is also notable, as ADUs are helping to address housing shortages across California, and CalEHP can provide financial support for energy-efficient development of this fast-growing housing sector.

Electricity is the backbone of California’s clean energy transition. All-electric buildings are simply a better product. They are healthier for occupants and save energy by using the most efficient technologies. The California Electric Homes Program is helping accelerate all-electric construction so that more Californians can experience the benefits of low-emission living.

J. Andrew McAllister

Commissioner, California Energy Commission

Builders and developers are the target participants for CalEHP incentives. In 2023, incentives for multifamily and single-family dwellings start at $1,750 and $3,500 respectively per residential unit. Participating projects are required to install all-electric equipment including heat pump space and water heating, induction cooking, thermostatic-mixing valves, segregated circuits and communicating thermostats, with bonus incentives for above code envelope, mechanical and load management measures.

CalEHP also supports decarbonization through energy storage installations in residential new construction, with incentives of $250/kWh for storage and $300/kWh for storage in all-electric reach code jurisdictions.

TRC Solutions

TRC helped launch the California Electric Homes Program in 2023 and currently implements the program for the CEC, providing engineering support, training, and outreach for participating home builders and developers, as well as for trade allies including architects, contractors, plumbers and electricians. The program team offers technical assistance for all-electric home building, from design through construction. The program team also provides sales training for home builders to further support development of all-electric new homes and helps to identify funding for participants by coordinating with other all-electric new construction programs to maximize incentives.

For more information, visit:


California Energy Commission

Project Location

California statewide

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