Why going Electric makes no sense in states like California.
Californians pay around $.30 cents per kilowatt hour to heat their homes with electricity. $.08 cents per kilowatt hour with natural gas.
But a new bill would force folks to switch to electricity for new homes. This would include all new construction. Presently you do not have to change over to electric. But after 2030 you cannot but a gas furnace or gas water heater. Below is the cost for a switch over.
1. Heat Pump HVAC (replaces gas furnace + AC)
$14,000 β $27,000 installed
- Equipment: $8,000β$15,000
- Labor: $6,000β$12,000
- Ductwork modifications (common in CA): +$2,000β$6,000
πΏ 2. Heat Pump Water Heater (replaces gas water heater)
$4,500 β $9,000 installed
- Equipment: $2,000β$3,500
- Labor: $1,500β$3,000
- 240V circuit: $800β$2,000
- Condensate + venting work: $300β$500
π 3. Electrical Panel Upgrade (if panel < 200 amps)
$2,500 β $6,000 Most California homes built before 1990 have 100βamp panels, which are insufficient for:
- Heat pump
- Heat pump water heater
- Induction stove
- EV charger (if present)
β‘ 4. Utility Service Line Upgrade (if required)
$1,500 β $5,000 This is the cost charged by the utility (PG&E, SCE, SDG&E) to upgrade the line from the street.
π³ 5. Induction Stove + 240V Circuit
$1,200 β $4,000
- Induction range: $900β$2,000
- 240V circuit: $300β$1,500
π 6. Electric Dryer + 240V Circuit
$800 β $2,500
- Dryer: $600β$1,200
- Circuit: $200β$1,300
π οΈ 7. Gas Line Capping + Decommissioning
$300 β $1,000 Required by code when removing gas appliances.
π 8. Permits, inspections, Title 24 compliance
$500 β $2,000
π¦ TOTAL COST RANGE
Lowβend (rare): $22,000
Typical: $28,000 β $45,000
Highβend (older homes): $50,000 β $58,000