Transitioning to Healthy and Sustainable Buildings: Cost-Effective Energy Efficiency Requirements
Projected Completion: 2026

The City’s General Plan calls for improved building energy efficiency and the City’s Climate Action Plan includes Measure 1.2 to decarbonize new building development. The 2025 Green Building Code (CALGreen) contains various new requirements for building construction.
In addition to these minimum mandatory building code requirements, the City proposes to include supplemental cost-effective energy efficiency requirements in the 2025 Building Code Update, as well as the 2025 Land Development Code Update.
View the fact sheet to learn more about the proposed cost-effective energy efficiency requirements.
Strategic Plan Priority Areas of Focus
This initiative focuses on the following priority areas of the Strategic Plan:
Protect & Enrich Every Neighborhood
Achieves healthier, safer, and more efficient buildings, resulting in long-term energy cost savings, improved indoor air quality and increased climate resilience.
Champion Sustainability
Implements Climate Action Plan Strategy 1 related to building decarbonization.
Time to Upgrade your Air Conditioner?
Do you own a single-family home that a central AC system that’s reached the end of its life? Turn lemons into lemonade, and replace it with a newer technology – a heat pump – that will save you money and make your home healthier with improved indoor air quality.
What is a heat pump?
Heat pumps air conditioners can not only cool your home, they can use ambient heat from outside to heat your home.
Why should I replace my AC and furnace with a heat pump?
- Increases the energy efficiency of your cooling and heating needs, saving you money
- Eliminates natural gas combustion inside your home, making your home healthier for you and your family
- Can pay for itself within 5 to 10 years, and will continue saving you even more money after that initial period!
Are there any other benefits?
Yes! Phasing out older AC systems with newer models that include a heat pump not only helps you reduce your energy costs and improves your indoor air quality, but it also reduces greenhouse gas emissions that contribute to a changing climate that affect all of us.
You save money, improve the health of your home, and help fight climate change – it’s a WIN - WIN – WIN.
Ready to get started?
Great! Here’s How to Get Started with a Heat Pump:
1. Contact a Licensed Contractor
- When your AC is ready for replacement, tell your contractor you want a heat pump instead of a standard AC.
- Ask for a system that provides both heating and cooling to fully replace or supplement your furnace.
2. Get Multiple Quotes
- Compare at least 2–3 licensed contractors to ensure competitive pricing and the right system size for your home.
3. Apply for Rebates & Incentives
- Federal Tax Credit: Claim up to $2,000 for qualifying heat pumps through the Energy Efficient Home Improvement Credit (25C).
- California Rebates: Programs like TECH Clean California and your local utility (SDG&E, etc.) offer rebates ranging from $1,000–$4,000+.
- Rebates can often be applied at the point of sale or filed for after installation. Ask your contractor if they are rebate-approved.
4. Enjoy Year-Round Comfort
- One system delivers efficient heating in the winter and cooling in the summer — while lowering your monthly energy bills.
Check out the Climate Action Plan webpage for more information on the City's different programs to improve our environment for all San Diegans
Renovating or Planning an Addition?
Are you remodeling or adding to your single-family home and do you want to save money and make your home healthier with improved indoor air quality while doing it?
Really?! Tell me more. What are my options?
Relatively simple cost-effective measures can significantly improve your home’s energy efficiency, including enhanced attic insulation, duct sealing, heat pump water heaters or installation of a solar system, or a roof top solar system.
Why should I include energy efficiency measures in my home remodel project?
- Increases the energy efficiency of your home, saving you money
- Measures can make your home healthier for you and your family
- These measures can pay for themselves within a relatively short period of time, saving you even more money after that initial period!
Are there any other benefits?
Yes! These measures not only help you reduce your energy costs and improve your indoor air quality but can also reduce greenhouse gas emissions that contribute to a changing climate that affects all of us.
You save money, improve the health of your home, and help fight climate change – it’s a WIN - WIN – WIN.
Ready to get started?
Great! Here’s How to Get Started:
1. Learn Which Upgrades Work Best for Your Home
- Not sure which measures will save you the most? Tools like the DOE Home Energy Saver Calculator or Energy Star’s Home Upgrade guidance can give you an idea of potential savings from insulation, duct sealing, efficient water heating, and more.
- You can also ask your contractor or energy auditor for a Home Energy Assessment, which identifies the most cost-effective improvements for your home’s age, size, and climate zone.
2. Talk to a Licensed Contractor
- When planning a remodel, addition, or major upgrade, let your contractor know you want to upgrade your old gas appliances and improve your building envelope.
- Contractors can help you select the right combination of upgrades (like duct sealing, attic insulation, or a heat pump) to save money and maximize comfort.
3. Take Advantage of Rebates & Incentives
- Federal Tax Credits: Homeowners can claim up to 30% of project costs for insulation, windows, and high-efficiency HVAC under the Energy Efficient Home Improvement Credit (25C).
- California Programs: Rebates are available through TECH Clean California for heat pumps and water heaters, and through local utilities like SDG&E for insulation, duct sealing, and other energy efficiency upgrades.
- Rebates and credits can often be stacked, cutting upfront costs by 30–60% or more.
4. Enjoy the Benefits
- Lower utility bills, greater comfort, better indoor air quality, and a more valuable, future-ready home.
Check out the Climate Action Plan webpage for more information on the City's different programs to improve our environment for all San Diegans