The Real Price of Going Electric: What Bay Area Homeowners Need to Know
April 15, 2025
Why Gas Appliances Are Being Banned
If you’ve been keeping an eye on local headlines, you already know big changes are coming to the way Bay Area homes are powered. The Bay Area Air Quality Management District (BAAQMD) has officially set dates to phase out certain gas appliances in an effort to reduce nitrogen oxide (NOx) emissions.
Mark Your Calendar:
- Jan 1, 2027: Gas water heaters under 75,000 BTU/hr are no longer allowed.
- Jan 1, 2029: Say goodbye to gas furnaces.
- Jan 1, 2031: Larger water heaters up to 2 million BTU/hr will be phased out.
If your current gas appliance breaks after these dates, replacement with an electric model will be mandatory. Planning ahead isn’t just smart—it’s necessary.
How Much Does Home Electrification Cost?
When folks ask us what it costs to go fully electric, we usually say: “It depends.” The price tag varies based on your home’s age, electrical panel capacity, and how many systems need updating.
⚠️ Typical Upgrade Ranges
Upgrade Estimated Cost
Heat Pump HVAC $9,500 – $40,000
Electric Water Heater $1,300 – $7,500
Permit & Load Calculations $1,000 – $2,000
Panel Upgrade (100A to 200A) $5,000 – $15,000
Rewiring & Subpanels $1,000 – $25,000
Utility Trenching / Feed $8,000 – $50,000
Breaker Panel Relocation $8,000 – $20,000
Full Multi-System Upgrade $50,000 – $100,000+
Homes built before 1990 often need significant updates that can exceed $50,000.
Step-by-Step Home Electrification
🔌 Equipment Selection
Choose appliances that fit your square footage and insulation level. Climate also plays a big role in efficiency.
📅 Load Assessment & Permitting
Your electrician calculates total load capacity and submits the plans to your city and utility provider.
💡 Panel & Utility Service Upgrades
Many homes still operate on 100A service. Upgrading to 200A is often required—and may involve PG&E trenching or a new meter.
🔧 Wiring & System Installation
New circuits may be needed for heat pumps, induction ranges, EV chargers, and more. Safety and code compliance come first.
What's Actually Involved?
Electric vs. Gas: A Cost Comparison
Feature Gas Electric
Appliance Cost $2,000–$5,000 $3,000–$7,500
Infrastructure Upgrade Rarely needed $5,000–$50,000+
Rebates Limited Up to $10,000+
Carbon Emissions High None (clean grid)
While upfront costs for electric appliances are steeper, the long-term value is in the rebates, efficiency, and future-proofing.
Available Rebates & Incentives
Navigating incentives can be tricky, but we’ve got you covered. These are the top programs available for Bay Area residents:
- BayREN Home+
- Up to $4,000 in rebates for electric HVAC, water heaters, and insulation improvements.
- → Visit BayREN
- TECH Clean California
- $3,000 incentives per heat pump unit installed.
- → Learn More
- CPUC Panel Upgrade Program
- Helps offset the cost of upgrading electric panels and service feeds.
- → CPUC Rebates
- Federal Energy Tax Credit
- Up to 30% off qualifying electrification projects under the Inflation Reduction Act.
- → IRS Energy Credits
Tips for Bay Area Homeowners
🔍 If You’re House Hunting
Check the electric panel. A 100-amp service may mean costly upgrades ahead.
⏳ Don’t Wait
2027 isn’t far away. Contractor demand is rising fast. Starting early avoids long waits and premium pricing.
👥 Good Neighbor Discount
We offer 5–15% off when neighbors group their upgrades together. It pays to go electric together.
Book a Free Electrification Assessment
Call us today: (408) 929-6100
