The following table shows the estimated project cost, which includes unit cost, installation cost, and any electrical service upgrade costs, for installing space and water heating appliances. Appliance costs for space heating are for heating, ventilation, and air conditioning (HVAC) units where the zero-NOx emission units costs are for heat pump HVAC units and the conventional unit costs are for natural gas HVAC units. Cost for water heating are for tank type water heaters, where the zero-NOx emission unit costs are heat pump tank type water heaters and conventional unit costs are for natural gas tank type water heaters.
Staff is also conducting a Socioeconomic Impact Assessment of the overall cost to implement the rules that is separate from these individual unit costs. The analysis evaluates costs, benefits, and regional economic impacts of the amended rules on affected residents, industries, and businesses.
Estimated cost to comply with rules (updated to reflect 2024 dollars)
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Zero-NOx Emission Unit Project Costs ($)1
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Conventional Unit Project Cost ($)2
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Cost to comply (e.g., incremental cost($))
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Space Heating (Rule 1111)
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Water Heating (Rule 1121)
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- Single-Family and Multifamily heat pump cost data are compiled based on real-world heat pump installations by TECH Clean California from January 2024 to December 2024 in the four-county region in the South Coast AQMD. TECH Clean California is a statewide initiative, which launched in June 2021, aimed to increase the adoption of heat pump technologies for space and water heating in both single family and multifamily homes.
- Conventional costs are derived from an Energy and Environmental Economics (E3) study, which is a consulting firm that specializes in conducting detailed modeling and analysis on topics, such as emissions reductions strategies and clean energy transition. Conventional costs in the table are adjusted for inflation.
TECH Clean California also provides data for incentives including total incentive amounts received, where the following table lists the average incentive for each installation.
Average incentive received per project
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Average Incentive Received ($)1
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Space Heating (Rule 1111)
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Water Heating (Rule 1121)
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- Average incentive received is derived from the TECH Clean California dataset from January 2024 to December 2024. Incentives received for these projects include, but are not limited to, incentives from TECH Clean California, Self-Generation Incentive Program (SGIP), Golden State Rebates, Comfortably California, and Southern California Edison.