A remodel is the cheapest time to electrify. Walls are already open, the crew is already on site, and you can size the electrical system once for everything you'll add. Here's how heat pumps, induction, and panel upgrades fit into a San Jose project — and where the rules and rebates stand in 2026.
- The 2025 Title 24 energy code took effect January 1, 2026 and treats heat pumps as the baseline for heating and hot water — gas is allowed but has to work harder to comply.
- Replacing an HVAC system or heat pump water heater triggers code steps like load calculations, duct testing, and HERS verification.
- A panel upgrade isn't always needed — many 200-amp panels have room, but a 100-amp panel often doesn't, especially with an EV charger added.
- State rebates (TECH Clean California, HEEHRA) change fast and run out, and the federal heat pump tax credit ended after 2025 — verify before you count on a number.
What Title 24 actually requires
California's 2025 energy code, in effect for every permit filed on or after January 1, 2026, doesn't ban gas — but it builds its energy budgets around heat pumps for space conditioning and water heating. In practice, choosing gas equipment means making up the efficiency somewhere else to pass. Certain alterations also carry their own triggers: swapping an HVAC system generally requires load calculations, duct sealing and testing, and third-party HERS verification, and installing a heat pump water heater brings ventilation and electrical-readiness requirements. We cover the broader code picture in our Title 24 and SB 407 guide.
Heat pumps for heating and cooling
A heat pump replaces both your furnace and AC with one efficient system that heats and cools. In the Bay Area's mild climate they perform especially well, and pairing the install with a remodel means the ducts and air handler can be addressed while things are open. If your home has old or leaky ducts, factor in sealing or replacement — it's usually required for code and improves comfort either way.
Induction cooking
If you're already redoing the kitchen, induction is worth a serious look: faster heat, no combustion byproducts indoors, and easy cleanup. The main planning item is power — an induction range needs a dedicated 240-volt circuit, which is simple to run while the kitchen is already opened up. Build it into the electrical plan from the start rather than retrofitting later. See our kitchen remodeling page for how this fits a full kitchen project.
The panel question
The most common worry is, "Do I need a bigger panel?" Sometimes, but not automatically. Many 200-amp panels have enough headroom to add a heat pump under standard load calculations. A 100-amp panel is more likely to need upgrading — particularly if you're stacking a heat pump, an induction range, and an EV charger. The right move is to calculate the actual electrical load before you commit, so you either confirm the existing panel works or budget for the upgrade up front instead of mid-project. That's part of how we scope work on our process page.
Rebates and incentives: verify, don't assume
This is the part that changes fastest. California has run generous programs — TECH Clean California and the federal-funded HEEHRA rebates — that have offered thousands of dollars toward heat pumps and heat pump water heaters, weighted toward income-qualified households. But funding pools open and close, and single-family funds have at times been fully reserved statewide. On the federal side, the residential heat pump tax credit is no longer available for systems installed after 2025. Treat any specific dollar figure as something to confirm at the time you pull the permit. If incentives don't line up, our financing options can bridge the cost.