Peninsula Clean Energy proposes heat pump incentives to reduce emissions and retrofit costs

The San Mateo Sustainability & Infrastructure Commission convened on May 14, 2025, to discuss several key initiatives aimed at enhancing energy efficiency and reducing greenhouse gas emissions in the community. Among the most significant proposals was the introduction of reach codes for renovations, particularly focusing on the transition from traditional air conditioning systems to two-way heat pumps.

Commission members highlighted that replacing an air conditioner with a heat pump could cost approximately the same—around $10,000. However, Peninsula Clean Energy is offering a $1,500 rebate to offset the additional costs associated with heat pump installation. This transition is not only beneficial for heating and cooling but also aligns with upcoming regulations from the Bay Area Air District, which will require homeowners to replace gas furnaces with electric alternatives starting in 2029. By adopting heat pumps now, residents could avoid future expenses that could exceed $10,000.

The commission also discussed a "flex path" policy targeting buildings undergoing significant renovations. This policy would require property owners to choose energy-efficient upgrades when pulling permits for projects exceeding a certain cost threshold, estimated between $75,000 and $150,000. The upfront costs for these upgrades would range from $2,000 to $4,000, but they promise long-term savings on energy bills.

Another major topic was the proposed commercial building performance standards, which would require businesses to benchmark their energy usage and implement efficiency improvements over time. While this initiative may not yield immediate emissions reductions, it aims to enhance the overall energy efficiency of commercial buildings in San Mateo.

Lastly, the commission introduced a municipal electric-first policy, mandating that city facilities transition to electric equipment upon replacement. This initiative is designed to set an example for the community and could reduce city emissions by approximately 45 metric tons by 2030.

Overall, the meeting underscored a strong community interest in sustainable practices, with many residents expressing support for the proposed initiatives. The commission emphasized the importance of balancing environmental goals with economic considerations, particularly for low- and moderate-income households. As these policies move forward, the commission will continue to engage with the community to ensure that the benefits of sustainability efforts are accessible to all residents.