Piedmont, California, homeowners thinking about moving away from gas now have a few more reasons to look at the numbers.

The California city rolled out home electrification rebates after a shift in local permit activity. Last year, city permit filings for heat pumps and heat pump water heaters passed those for comparable gas systems.

Here's what to know

Piedmont Exedra reported that the city has updated its rebate program to cover a wider range of projects: solar-and-battery setups, battery-only storage, removing gas meters, and installing smart electrical panels.

For many households, one of the biggest savings opportunities may be a heat pump water heater. These systems are far more efficient than conventional, fuel-powered models, which can mean lower monthly energy costs. In Piedmont, that efficiency pairs with either an $800 standard rebate or as much as $2,000 for income-qualified households.

The revised rebate list also includes $900 for electrical panel upgrades, rising to $2,250 for income-qualified applicants; $2,000 for solar-and-battery systems, rising to $5,000 for income-qualified applicants; and $2,500 for removing a gas meter, available to any eligible household.

One major change is the phaseout of standard rebates for heating and cooling systems that run on heat pumps. Only income-qualified households can now claim that rebate, though residents who filed for a qualifying project before the change can still request the old standard amount through October 1.

More background

City officials said the update is based on lessons from the program's early years. Since the rebates began in 2023, they have supported 90 switches from gas appliances to electric alternatives, along with electrical panel upgrades.

Even with more residents making those changes, gas used in homes remains a source of local pollution, making up about half of Piedmont's communitywide total. Many households still have gas appliances that could be replaced to help cut that pollution and possibly reduce utility bills over time.

The city also determined that its original income guidelines were too restrictive. Previously, higher rebate amounts were tied to eligibility for the California Alternate Rates for Energy and the Family Electric Rate Assistance, which together reach about 2% of households in Piedmont.

Under the revised structure, the city said a four-person household earning as much as $195,000 a year, or 120% of the area's median income, can now qualify for a new moderate-income rebate tier. CARE and FERA households still get the top rebate amounts.

What's being done?

The city is directing incentives toward projects where rebates appear to have the biggest influence on homeowners' decisions. Piedmont said heat pump heating and cooling projects were often moving forward even without a city rebate, while heat pump water heater projects appeared to be more affected by upfront cost support.

Homeowners weighing newer technologies have more options, too. One example is Cala, which makes smart heat pump water heaters designed to reduce wasted energy. Cala's customizable smart heat pump water heaters help homeowners decrease their energy bills by heating water exactly when it is needed.

For households on time-of-use electricity plans, that kind of control can make electrification more practical.

The city awards rebates on a first-come, first-served basis, so funding could run out. Homeowners comparing products and timing can look at options like those from Cala to weigh both comfort and cost.

"Updates to the rebate program take what we've learned from the first three years and put it to work – expanding the projects we support, improving access to higher rebates, and focusing City funds where they can have the greatest impact," the city said, per Piedmont Exedra.

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