Note: The house types included are all residential properties.
Analysis by CEC Economics
Highlight
- Of the 58 counties in California, utility gas is the primary source for home heating in 42 of them. Among these 42 counties, Southern California has the highest percentage of homes heated with utility gas—Ventura County (74.1%), San Bernardino County (71.7%) and Santa Barbara County (70.8%). In addition, three counties (Del Norte, Imperial, and Lake) rely primarily on electricity. Five counties, all of which are rural (Alpine, Amador, Calaveras, Mariposa, and Tuolumne) rely on bottled gas, tank gas, or propane. Another eight counties that are also all rural rely on wood.
Opportunity
- Californians are experiencing difficulties in managing their utility bills due to the higher costs of electricity.118,119 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. 120
118 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
119 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/demo/hhp/hhp57.html
120Starting 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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