Note: The house types included are all residential properties.
Data Source: American Community Survey Public Use Microdata Sample, U.S. Census Bureau.
Analysis by CEC Economics
Highlights
- Of the 58 counties in California, utility gas is the primary source for home heating in 41 of them in 2023. Among these 41 counties, Southern California has the highest percentage of homes heated with utility gas—Ventura County (73.3%), San Bernardino County (71.3%) and Riverside County (70.2%). These percentages are slightly lower than the previous year as alternative sources such as electricity and solar energy have displaced utility gas somewhat.
- Electricity was the most common primary source in four counties: Del Norte County (61.6%), Imperial County (52.6%), Lake County (40.6%), and Tehama County (29.9%). Bottled gas, tank gas, or liquid propane gas was the most common primary source in four counties, all of which are rural (Amador, Calaveras, Sierra, and Tuolumne). Meanwhile, wood was the most common primary source in nine counties that are also all rural (Alpine, Inyo, Lassen, Mariposa, Modoc, Mono, Plumas, Siskiyou, and Trinity).
Opportunity
- Californians are experiencing difficulties in managing their utility bills due to the higher costs of electricity.122, 123 This may result in many homes opting not to switch from gas to electricity as their primary 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. However, it was repealed in the federal bill H.R.1, passed in July 2025, and will be eliminated on December 31, 2025.124
122 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
123 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
124 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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