Clean Air Now

Frequently Asked Questions

Grid Reliability

• Will heat pump water heaters strain the electrical grid?
  No. Once heat pumps are standard, the additional load on the electrical grid will only go up by about 1% per year, a rate that the grid can easily handle. Because the grid gets overloaded only on hot summer days (lots of A/C), the impact of water heaters is almost zero, because most of them are programmed to turn on in the morning or at night, when electricity is cheapest, and the grid isn't under strain.
• What happens during a power outage?
  Modern water heaters are well insulated and can keep water warm for days, particularly if they use a mixing valve to store water at a higher temperature. Most modern gas water heaters also use electricity instead of a pilot light, and so also don't heat during a power outage. And power outages are not as common as we imagine. Across all of PG&E territory, in 2024, residents had an average of less than 2 outages per year, lasting a total of 4.6 hours, so it's rare to lose hot water due to an outage.

Affordability

• Is a heat pump water heater cheaper to run?
  Yes. Even with high electricity prices, heat pumps are so efficient that they are cheaper than gas. A careful 2025 Bay Area study, estimated that a heat pump water heater would save an average of $230 per year in utility bills, adding up to $3450 over the lifetime of the heater. With recent drops in electricity rates and volatility in gas prices, these savings are likely to increase considerably.
• How can I pay for a heat pump water heater?
  Right now there are several rebate programs that pay for most or all of the additional cost of a heat pump water heater When heat pumps become mandatory in 2027, it is likely that many of these rebates will be restricted to low-income applicants, or drop in amount, due to limited budget. Instead, we expect to see on-bill financing programs, like the one already run by Peninsula Clean Energy. Their clients can borrow up to $10,000 to finance home electrification, repaying it at a 0% interest rate over 5 years, with the repayments simply added to the monthly electrical bill. Several other electricity suppliers are working on similar financing options.
• What if I can't afford the extra cost?
  The Air District is planning (as of June 2026) to allow low-income homeowners to claim an exemption from the standards if their income is below 80% of the local Area Median Income, or equivalent level. They are also planning an exemption for all homeowners who can demonstrate that installing a heat pump would be unusually expensive (e.g. if it triggered a major electrical panel or service upgrade).
• Do I need to upgrade my electrical panel or supply?
  No. The proposed standards provide an exemption for the small fraction of people who would need to upgrade a panel or electrical service.
  And new technology and methods mean that almost all homes on 100A panels won't need to upgrade. Some electricians may want to upsell you a new panel, but tools like circuit pausers, skinny breakers and the "Watt diet" allow electrification without panel replacement.
• Are heat pumps getting cheaper?
  In the past two years, heat pumps have become much more efficient and sophisticated, while largely staying the same in price. Several factors are primed to cut the overall price of installation, considerably.

  1. * Newer 120V water heaters don't need a dedicated 240V circuit and are cheaper to install, though not suitable for large households.
  2. * Several permit reform bills are progressing in Sacramento. If they pass, they would cut at least several hundred dollars from the cost of installation.
  3. * As more installers get familiar with heat pumps, competition will increase and prices fall, according to research from TECH Clean CA.