Source: American Census Survey, Public Use Microdata Sample (PUMS), 2021. Note: The house types included are all residential properties. Analysis by Beacon Economics.
Highlight
- California had a diverse mix of household energy sources across both owners and renters homes. Out of the 418 jurisdictions in California, approximately 60 percent of them primarily rely on utility gas for heating. Moreover, the dominance of utility gas exceeds an average of 50 percent in these regions. As of 2021, 247 jurisdictions rely primarily on utility gas; 57 jurisdictions rely primarily on electricity or bottled gas, tank gas, or propane; 48 jurisdictions rely primarily on wood; and 3 jurisdictions rely primarily on fuel oil, kerosene, or diesel.
Opportunity
- Californians are experiencing difficulties in managing their utility bills due to the higher costs of electricity.183,184 This has resulted in many homes opting not to choose electricity as their preferred energy source. In addition, wholesale power prices tend to be higher in deregulated markets (e.g., California, New York, Texas) due to the extra spending on power lines to carry electricity over hundreds of miles through utility pipelines. The Energy Efficiency Tax Credit, included in the Inflation Reduction Act, aims to alleviate the financial burden for homeowners.185
183 U.S. Energy Information Administration. California Price Differences from U.S. Average, Most Recent Monthly. Available at: https://www.eia.gov/state/?sid=CA#tabs-5.
184 U.S. Census Household Pulse Survey. More than a quarter of Southern California residents were unable to pay their energy bills in full at least once in the last year, and 24% kept their home at what they felt was an unhealthy or unsafe temperature. May 13, 2023. Accessed June 22, 2023. Available at: https://www.census.gov/data/tables/2023/
185 Starting in 2023, homeowners will be able to claim a 30% tax credit (with annual limits that vary by service) on qualifying energy efficiency home improvements, including: heat pumps, energy audits and energy efficiency home improvements. Energy Efficient Home Improvement Credit. June 16, 2023. Accessed June 22, 2023. Available at: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit
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