The Bay Area Air Quality Management District’s new rules banning the sale of gas water heaters starting in 2027 and gas furnaces in 2029 have inspired several editorials, guest opinion pieces and letters to the editor in this newspaper. Many of the comments in these pieces have focused on the difficulty of homeowners being able the afford the cost of the heat pump water heaters and HVAC systems that will have to be installed when gas-powered equipment reaches the end of its useful life.
However, what these comments are missing is that there are local and federal programs that will substantially reduce the upfront costs of installing heat pump water heaters and HVAC systems. Peninsula Clean Energy in San Mateo County offers homeowner rebates of up to $3,000 for heat pump water heaters and up to $3,500 for heat pump HVAC systems, as well as up to $10,000 in interest-free loans. At the federal level, provisions in the Inflation Reduction Act will offer subsidies to homeowners of up to $14,000 for heat pump systems, including panel upgrades and wiring, for households with less than 150% of median income for the area. It’s also likely that the state will jump in with its own subsidy programs at some point.
The problem is that few people are currently aware of these programs. Hopefully, as we move toward 2027 when the BAAQMD rules first take effect, these programs will become more widely known, including information on who is eligible and how to apply.
Mr. Steele, I’m not sure people, especially lower income folks, are happy with subsidizing the rich, so I can understand their hesitance to spending tens of thousands of dollars for a return of a few thousand dollars, especially since electrification won’t make a whit of difference to global warming. Perhaps folks are aware of rebate programs but they don’t care… They still won’t have the out-of-pocket cash to electrify. But don’t worry, Mr. Steele, some landlords may be happy to take money from the poor, at least twice… First, from the rebate, and then, after these landlords electrify, they can raise the rent. Win-win, well, except for lower income folks and renters who are subsidizing the rich… So much for equity…
Good luck applying to multiple government agency for subsidies. But even if you get them it won't cover the cost of labor or off site costs for upgrading an electrical service most people will need while waiting months to get a heater of water heater installed in the dead of winter. This will hurt poorer retired people first. Many more lives would be saved if the subsidy money were spent on more life saving assistance.
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(3) comments
Thank you for bringing these programs to the fore, Bob.
Mr. Steele, I’m not sure people, especially lower income folks, are happy with subsidizing the rich, so I can understand their hesitance to spending tens of thousands of dollars for a return of a few thousand dollars, especially since electrification won’t make a whit of difference to global warming. Perhaps folks are aware of rebate programs but they don’t care… They still won’t have the out-of-pocket cash to electrify. But don’t worry, Mr. Steele, some landlords may be happy to take money from the poor, at least twice… First, from the rebate, and then, after these landlords electrify, they can raise the rent. Win-win, well, except for lower income folks and renters who are subsidizing the rich… So much for equity…
Good luck applying to multiple government agency for subsidies. But even if you get them it won't cover the cost of labor or off site costs for upgrading an electrical service most people will need while waiting months to get a heater of water heater installed in the dead of winter. This will hurt poorer retired people first. Many more lives would be saved if the subsidy money were spent on more life saving assistance.
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.