Enhanced Support Pathway Incentives

Enhanced Support Pathways

The enhanced support pathway (ESP) incentives focus on overcoming specific barriers to the adoption of heat pump technologies in California’s multifamily buildings sector. These pathways include standard incentive amounts as well as additional financial incentives funded by California’s Greenhouse Gas Reduction Fund (GGRF). Incentives are available to TECH Clean California contractors, who are required to pass 100 percent of the savings onto the property owner. In addition to incentives, these ESPs provide property owners and contractors with support that includes:

• Training, technical, and administrative support to scope and carry out upgrades
• Increased experience and capacity with heat pump technologies
• Increased comfort, more efficient equipment, and reduced emissions in contribution toward the state’s larger climate targets

Participants in ESP-incentivized projects will be selected by a random lottery system. Each applicant can submit up to five projects, and there are contractor caps and project incentive caps for each pathway. In addition, California Department of Industrial Relations (DIR) public works prevailing wage compliance requirements apply to all multifamily incentives. Full details can be found in the Terms and Conditions.

There are three types of enhanced support pathway incentives:

1. Electrification Readiness
2. Central Heat Pump Water Heater Optimization
3. Small Portfolio Owners

Electrification Readiness

Because full electrification all at once is not always possible. 

One of the major barriers for electrification is the ability to replace equipment within the confines of unit turnover timelines and financial constraints. Electrification readiness offers a pathway to enable electrification over time when projects face these barriers.

This initiative helps property owners evaluate the potential for full electrification and develop an electrification readiness plan to invest in the infrastructure required for heat pump water heater and heat pump HVAC installations. Participants must install at least one heat pump water heater and/or space conditioning system in at least one unit.

Learn more about electrification readiness incentives by reviewing our webinar presentation and recording.

Electrification readiness incentives (includes standard incentive amounts as well as additional incentives).

*Participating contractors will be required to attend virtual training on electrical evaluation and readiness.

Measure	Maximum Incentive*	Unit
Electrical Monitoring and Engineering (pre-retrofit)	$5,000	per property
Electrical Infrastructure	$8,000	per housing unit
Circuits - Electrification Readiness	$500	per circuit
Physical Modifications – Electrification Readiness	$1,000	per housing unit

Central Heat Pump Water Heater Optimization

Designed to support contactors new to central heat pump water heater plants.

Central heat pump water heating systems are newer technology—which for many property owners and contractors, means approaching engineering and design in a different, more complicated way than gas boilers. This pathway will provide pre- and post-installation technical support and system-based monitoring for a limited number of properties installing central heat pump water heating systems.

Required contractor training will include findings from completed projects that deployed monitoring, protocols for pre- and post-monitoring, and an overview of monitoring equipment. This training and technical assistance will be coupled with enhanced incentives, troubleshooting, and support for these protocols. All multifamily properties with existing gas central water heating systems that want switch to a heat pump are eligible.

Learn more about central heat pump water heater optimization incentives by reviewing our webinar presentation and recording.

Central heat pump water heater optimization incentives (includes standard incentive amounts as well as additional incentives)

*Participating contractors must have installed central heat pump water heating plants for no more than six projects to date under TECH Clean California.

Measure	Maximum Incentive*	Unit
Pre-Retrofit Monitoring	$5,000	per project
Pre-Retrofit Fixing Distribution Issues	$17,000 per plant; capped at $34,000 per project	per plant
Post-Retrofit Monitoring	$5,000	per project
Monitoring Equipment Allowance	$5,000	per contractor

Small Portfolio Owners

To engage and support independent owners with small portfolios seeking to electrify.

Owners with smaller portfolios are more likely to manage unregulated housing, which is naturally occurring, low-income housing that does not qualify for many low-income programs. Independent property owners with modest portfolios tend to have fewer resources—including financial, time, and/or staff capacity—to manage properties, and therefore participate less frequently in programs. As a result, this is hard-to-reach ownership population is often underserved, left behind by incentive programs, and less prepared for future regulatory changes.

The intent of the initiative is to expand TECH Clean California’s breadth of participants to include owners with smaller portfolios and more limited resources, often referred to as “mom-and-pop” owners. This initiative will support more equitable decarbonization and bring benefits to residents that cannot undertake these home improvements as renters.

Learn more about small portfolio owner incentives by reviewing our webinar presentation and recording.

Small portfolio owner incentives (includes standard incentive amounts as well as additional incentives)

*For independent owners with portfolios of 2 to 15 multifamily properties. Participating owners will be expected to attend quarterly roundtable meetings with peer owners to share knowledge, challenges, and solutions. The participating property must meet affordability criteria, determined by tenants’ income or rent relative to household 80 percent area median income (AMI).

Measure	Maximum Incentive*	Unit
Enhanced Incentives	$10,000	per housing unit