The 2025 Energy Code expands the use of heat pumps in newly constructed residential buildings, encourages electric-readiness, strengthens ventilation standards, and more. Buildings whose permit applications are applied for on or after January 1, 2026, must comply with the 2025 Energy Code.

2025 Energy Code Benefits

New and more efficient technologies are constantly
under development, often supported by funding from
state programs. These are crucial steps in the state’s
progress toward 100 percent clean electricity and carbon
neutrality. Some benefits of the 2025 Update include:

Reducing GHG emissions by
encouraging heat pumps for
space and water heating in
most new buildings and
requiring more efficient systems,
including heat pumps, in some
alteration projects in existing
nonresidential buildings.

Increasing on-site renewable
energy using solar panels and
batteries, which provide backup
power and let customers manage
their energy use, while minimizing
exports to the electrical grid.

Encouraging automation of
loads to be flexible. Such
flexibility can enhance grid
reliability, reduce emissions
and save consumers money.

Improving indoor air quality
and public health through
better ventilation.

Cleaning Up Existing Homes

In addition to newly constructed buildings, the standards apply to
substantial additions and alterations to existing homes and businesses.

At least 50 percent of single-family homes and nearly 60 percent
of California’s apartment complexes (about 14 million total
residences) were built before the state’s first energy standards.

Updating older buildings is critical to reduce their energy use and
GHG emissions. Some of these older buildings are being updated
at low or no cost through a variety of programs funded by the CEC
and other state agencies.