New Construction

Build Electric SVP offers incentives for qualifying multifamily and accessory dwelling unit (ADU) residential new construction projects located within the City of Santa Clara. The program supports Silicon Valley Power’s (SVP) electrification and climate goals by accelerating the adoption of energy-efficient all-electric homes.

Multifamily Affordable and Market-rate New Construction

Build Electric SVP offers incentives for new all-electric affordable and market-rate multifamily family properties located within the City of Santa Clara. For the purposes of the program, a multifamily property is defined as a building with four or more attached units connected by shared walls.

Resources

Multifamily Program Pre-requisites

  • No gas infrastructure: The project may not include gas infrastructure on-site

  • Heat pump water heating: Installed units must have a UEF rating of 3.0 or greater

  • Heat pump space heating: Installed systems must meet the applicable efficiency requirements:

    • Ducted split heat pump: SEER2 rating of 15.2 or higher and HSPF2 rating of 7.7 or higher
    • Ductless split heat pump: SEER2 rating of 15.2 or higher and HSPF2 rating of 7.7 or higher

  • Electric clothes drying: The property must exclusively use electric clothes dryers

  • Induction cooking: Dwelling units must include induction cooking equipment*

*Induction cooking is not required for qualifying affordable multifamily housing projects. Affordable housing includes properties certified as affordable through a regulatory designation or under the City of Santa Clara’s affordable housing definition. The program may consider naturally occurring affordable housing on a case-by-case basis.

Multifamily Incentives

New Construction Incentives

Building Type 2026-2027 2028-2029
Multifamily Market-Rate (per dwelling unit) $4,500 $4,300
Multifamily Affordable Housing (per dwelling unit) $6,500 $6,300

Incentives are dependent on the project’s year of completion.

Multifamily Bonus Incentives

Enrolled projects may qualify for bonus incentives when they install eligible high-efficiency equipment or building-envelope improvements.

Bonus per Multifamily Dwelling Unit Incentive
ENERGY STAR® Induction Cooking  $250
Central Heat Pump Water Heating (per condenser installed)  $3,000
CEE Tier 1 Variable Capacity Heat Pump  $1,000
Increased Insulation – Attic  $800
Increased Insulation – Wall  $800
High Efficiency Windows  $1,000
Air Sealing  $1,000

To qualify for Build Electric SVP bonus incentives, each participating unit must meet the specifications below:

ENERGY STAR® Induction Cooking
Install an ENERGY STAR® certified induction cooktop or range with certified energy consumption not exceeding 195 kWh per year. The product must be evaluated and certified to ENERGY STAR® requirements under 10 CFR 430, Subpart B, Appendix 1.

Central Heat Pump Water Heater
Install a central heat pump water heater that supplies domestic hot water for all residential units within the enrolled multifamily building.

CEE Tier 1 Variable-Capacity Heat Pump
Install a system that complies with CEE Tier 1 Path A or B requirements.

Standard split ducted and ductless systems:

  • Path A: SEER2 – 16.0 | EER2 – 9.8 | HSPF2 – 8.5 | COP @5°F – 1.75 | Capacity Ratio – 0.65 OR 65%
  • Path B: SEER2 – 16.0 | EER2 – 11.0 | HSPF2 – 8.0 | COP @5°F – 1.75 | Capacity Ratio – 0.50 OR 50%

Increased Attic Insulation
Install attic insulation that exceeds the prescriptive requirements for the Climate Zone 4. This bonus is not available for projects without attics. Qualifying properties must meet or exceed the following criteria:

  • R-19 below roof-deck cavity insulation
  • R-38 ceiling-cavity insulation

Increased Wall Insulation
Install wall insulation that exceeds the prescriptive requirement for the Climate Zone 4. The multifamily prescriptive requirement is based on a winter-design U-factor of 0.051. There are many design pathways to meet this requirement, including:

  • 2×6 wood framed wall cavity
  • R-21 wall cavity insulation
  • R-4 continuous insulation
  • Stucco exterior wall finish

Other compliant design pathways may also qualify.

High Efficiency Windows
Install glazing with an area-weighted average U-factor of 0.25 or lower.

Air Sealing
Achieve a per-unit air sealing (blower door) test rating of 3 ACH50 or lower.

Accessory Dwelling Unit New Construction

 

Build Electric SVP offers incentives for all-electric accessory dwelling units (ADU) new construction located within the City of Santa Clara. An ADU is a smaller, independent residential dwelling unit located on the same lot as a single family home. ADUs include conversion of existing attached space, a new attached building, or conversion of existing detached space.

ADU Program Pre-requisites

  • Heat pump water heating: Installed units must have a UEF rating of 3.0 or greater

  • Heat pump space heating: Installed systems must meet the applicable efficiency requirements:

    • Ducted split heat pump: SEER2 rating of 15.2 or higher and HSPF2 rating of 7.7 or higher
    • Ductless split heat pump: SEER2 rating of 15.2 or higher and HSPF2 rating of 7.7 or higher

  • Electric clothes dryer: A clothes dryer hook-up is not required for ADUs. If included, it must be electric.

  • Induction cooking: Dwelling units must include induction cooking equipment

Contractor on clipboard writing notes

ADU Incentives

ADU Incentives 2026-2027 2028-2029
ADU (per dwelling unit) $4,500 $4,300

Incentives are dependent on the project’s year of completion.

ADU Bonus Incentives

Enrolled ADUs may qualify for bonus incentives when they install eligible high-efficiency equipment or building-envelope improvements.

Bonus per ADU Incentive
ENERGY STAR® Induction Cooking  $250
CEE Tier 1 Variable Capacity Heat Pump $1,000
Increased Insulation – Attic  $800
Increased Insulation – Wall $800
High Efficiency Windows  $1,000
Air Sealing $1,000

To be eligible for Build Electric SVP bonus incentives, projects must adhere to the following specifications for each ADU:

ENERGY STAR® Induction Cooking
Install an ENERGY STAR® certified induction cooktop or range with certified energy consumption not exceeding 195 kWh per year. The product must be evaluated and certified to ENERGY STAR® requirements under 10 CFR 430, Subpart B, Appendix 1.

CEE Tier 1 Variable-Capacity Heat Pump
Install a system that complies with CEE Tier 1 Path A or B requirements.

Standard split ducted and ductless systems:

  • Path A: SEER2 – 16.0 | EER2 – 9.8 | HSPF2 – 8.5 | COP @5°F – 1.75 | Capacity Ratio – 0.65 OR 65%
  • Path B: SEER2 – 16.0 | EER2 – 11.0 | HSPF2 – 8.0 | COP @5°F – 1.75 | Capacity Ratio – 0.50 OR 50%

Increased Attic Insulation
Install attic insulation that exceeds the prescriptive requirement for the Climate Zone 4. This bonus is not available for ADUs without attics. Qualifying properties must meet or exceed the following criteria:

  • R-19 below roof-deck cavity insulation
  • R-38 ceiling-cavity insulation

Increased Wall Insulation
Install wall insulation that exceeds the prescriptive requirement for the Climate Zone 4. The ADU prescriptive requirement is based on a winter-design U-factor of 0.048. There are many design pathways to meet this requirement, including:

  • 2×6 wood framed wall cavity
  • R-21 wall cavity insulation
  • R-4 continuous insulation
  • Stucco exterior wall finish

Other compliant design pathways may also qualify.

High Efficiency Windows
Install glazing with an area-weighted average U-factor of 0.25 or lower.

Air Sealing
Achieve a per-unit air sealing (blower door) test rating of 3 ACH50 or lower.

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