SF offers $1,200 in bill credits for efficient water heater upgrades

Axios

6 days ago

A new city program encourages San Francisco residents to upgrade to clean, efficient water heaters by offering bill credits of up to $1,200.
Why it matters: Heat pumps are up to seven times more efficient than a gas-powered water heater and reduce exposure to pollution and fire risk, city officials say.
Driving the news: Customers of CleanPowerSF, the city-run energy choice program that sources from renewable energy, can apply to the upgrade program and receive a $50 monthly bill credit for two years.
Customers on a discount program like CARE/FERA get the credit for up to three years.
"We're budgeted for about 1,000 participants every year," Tim Minezaki, who works on CleanPowerSF's customer programs team, told Axios. "We hope this new, different approach helps break through some of the customer barriers."
By the numbers: Standard heat pump installation costs from $6,000 to $9,000 in San Francisco — compared with $2,000 to $3,000 for a traditional gas-powered unit, Minezaki said.
But heat pumps use less electricity than conventional heating, making them an important tool for curbing emissions, while helping save money long term, studies have found.
How it works: Rather than relying on burning fuel, heat pumps absorb heat from the surrounding air and transfer it to water in an enclosed tank.
They can also help reduce energy use during expensive peak hours by heating water during off-peak periods and storing it for later.
Between the lines: Other incentives can also help reduce upfront costs for switching to a heat pump, including federal tax credits, California's TECH Program and Golden State Rebates.
The big picture: Residential and commercial gas use constitutes more than one-third of San Francisco's greenhouse gas emissions, per CleanPowerSF.
In residential homes, "the two highest sources of direct gas are going to be turning on a furnace or heating your water," Minezaki said.