California streamlines heat pump permits to lower installation costs

California’s new laws simplify heat pump and solar permits, cutting fees and delays for households.

California’s State Legislature passed SB 222 (Heat Pump Access Act) and AB 1738 (Remote Virtual Inspections Act) to reduce barriers for clean energy installations. SB 222 establishes a statewide permitting standard across 600 jurisdictions for heat pumps and heat-pump water heaters, capping fees at $150 for water heaters and $200 for heat pumps. It also requires cities of 50,000+ and counties of 150,000+ to offer expedited permitting by July 2028. AB 1738 mandates remote virtual inspections for cities of 50,000+ and counties of 150,000+ by January 2028, with at least 19 jurisdictions already providing this service. SPUR estimates these measures could save $500 million in permit fees over three years based on current data. The bills aim to reduce installation costs for environmentally friendly upgrades by up to $1,000 per project.

This streamlines access to affordable clean energy for households, directly advancing household energy affordability in California. By standardizing permitting and reducing fees, the laws lower financial friction for heat pump adoption—a critical step toward energy independence. The next phase depends on Governor Newsom signing both bills by September 30, 2026, and meeting the jurisdictional thresholds for implementation. Savings estimates are based on SPUR analysis, and the publication date (September 14, 2026) appears to be erroneous as it references a future date. The laws also address security by reducing vulnerabilities from outdated energy infrastructure.

Source: Canary Media