To Slash Energy Costs & Climate Emissions, Senator Wiener Introduces Legislative Package to Streamline Plug-in Solar, Heat Pump Permitting

The Clean Homes and Energy Affordability Package (CHEAP) allows Californians to access cost-saving clean energy technologies, helping to tackle skyrocketing energy costs in the state with the second highest electricity rates.

SACRAMENTO – Today, Senator Scott Wiener (D-San Francisco) announced the Clean Homes and Energy Affordability Package (CHEAP), which consists of SB 222, The Heat Pump Access Act, and SB 868, The Plug And Play Solar Act. SB 222 streamlines permitting for heat pump HVAC and water heater systems, and SB 868 streamlines approvals for plug-in solar systems, a new form of small-scale, mobile solar with the potential to lower energy costs for millions of California renters, apartment dwellers, and homeowners.

Both bills allow Californians to save on energy bills by accessing cost-saving clean energy technologies at home. Depending on the model and the home, a plug-in solar system can save a California household up to $450 per year, while the average household in the US can save nearly $400 a year in energy costs by switching to a heat pump. Californians urgently need relief from skyrocketing high energy prices: Electricity rates for PG&E customers increased nearly 40% between 2022 and 2025. California now has the second highest electricity rates in the nation after Hawaii. 

“Californians should have every tool available to lower energy costs, especially given the disastrous rate hikes in recent years,” said Senator Wiener. “Renters and residents of apartment buildings in particular deserve options to lower costs and access clean energy the same way homeowners can access rooftop solar. These technologies are a win-win-win, and enabling access to them is simply good government.”

SB 868, The Plug And Play Solar Act

Plug-in solar systems, also known as portable solar systems or “balcony” solar, offer an easy way for consumers to generate safe, clean and low-cost electricity using California’s abundant sunshine. 

Plug-in solar systems consist of a few solar panels, an inverter, and a small battery that plug directly into a home’s standard 120‑volt outlet. The electricity they generate flows directly to the nearest refrigerator, air conditioner, or other appliance that’s running. Because these systems are small, typically all the energy they generate will be consumed entirely within the home. Rarely will the electrons leave the house and flow to the grid, ending up at the house next door and when they do, the consumer is typically not compensated by the utility in any way.

These systems have exploded in Germany, with over 1 million systems installed, saving tens of millions per year in energy costs and helping Germany reach its clean energy goals. Utah has already passed a law to allow these innovative systems, and SB 868 would make California the second state to do so.

Because plug‑in systems do not require roof ownership or major construction, they open the solar market to people with old roofs, shaded roofs, balconies, small backyards or patios, renters, and condo owners. California has roughly 14 million rental units, around 40 percent of households, making this an especially powerful tool for expanding access to clean energy. 

Where a residential rooftop solar system tends to be 5,000-10,000 watts, plug-in solar systems are smaller, typically around 200-1800 watts. These systems can cover up to 1/5th of a household's average energy usage. At only $400 for a 200-watt system and up to $2000 for an 800-watt system without a battery, these are an affordable solution that can reduce energy costs and allow a broader range of people to access the benefits of solar. 

Even though these systems can provide meaningful savings and are both small and safe, utilities are burdening them with the same requirements they use for much larger energy systems. PG&E claims residents are required to apply for an interconnection agreement to use plug-in solar systems, making them jump through the same regulatory hoops as a power plant or large solar installation.

SB 868 lowers consumer energy bills, diversifies energy resources, reduces strain on the electric grid, and helps cut air pollution by establishing safety standards portable solar energy devices and prohibiting unnecessary utility red tape, such as requiring a full interconnection agreement.

“Energy insecurity, increased temperatures, and air pollution are triple threats that require our immediate attention,” said Bernadette Del Chiaro, Senior Vice President, California, Environmental Working Group. “Fortunately, California consumers have yet another no-brainer solution: Balcony Solar. SB 868 helps put portable solar energy devices in the hands of more consumers lowering utility bills and increasing clean energy.” 

"Everyone wants clean, reliable, safe energy, but not everyone has enough room to install the best source of those things: solar panels,” said Laura Deehan, State Director, Environment California. “That's why balcony solar, which (hence the name) is small enough to put just about anywhere you live, is such an important new technology. Now, just about everyone has the power to switch to solar power."

"Californians need more choices that help them quickly reduce their electricity bills," said Solar Rights Alliance executive director Dave Rosenfeld, "SB 868 is a practical, kitchen-table solution that lets consumers plug into the sun no matter what kind of home they live in.”

“Balcony solar is another tool in the solar toolbox that will help California reach its clean energy goals,” said Brad Heavner, Executive Director, California Solar & Storage Association.

"Too many Californians are struggling to meet their energy bills as our summers get hotter and our energy more expensive,” said Cora Stryker, Cofounder, Bright Saver. “Plug-in Solar is an elegant solution to that problem. A way for more Californians to reduce their energy bills while producing clean energy from the sun.”

SB 222, the Heat Pump Access Act

Heat pumps are a highly efficient, zero carbon option for heating, ventilation, and air conditioning (HVAC) systems and water heaters that make heating and cooling homes cleaner, safer, and more affordable. Because heat pumps are so energy efficient (reducing electricity use for heating by up to 75%), the average household in the US can save nearly $400 a year in energy costs by switching to a heat pump. When paired with solar and/or battery systems, and outfitted with demand response capabilities, heat pumps can save residents even more. 

Replacing a fossil fuel HVAC or water pump system with a heat pump eliminates harmful pollutants those systems release into homes, improving the health of Californians and slashing climate emissions dramatically. Heat pumps also include air filtration capabilities that reduce indoor air pollution from other sources, such as wildfire smoke.

Extreme weather events like heat waves and explosive wildfires are on the rise in California, and exacerbated by fossil fuel use. More than a quarter of Californians lack air conditioning, and low-income households and communities of color are significantly less likely to have access to the cooling they need to stay safe during extreme heat events. 

California is recovering from one of the most destructive wildfire disasters in its history, which released toxic pollutants into the air. The air filtration systems in heat pumps filter indoor air rather than bringing polluted outside air into the home, which can help secure healthier indoor air. The Heat Pump Access Act is critical to helping speed the process for households installing heat pumps for life-saving cooling, air filtration, and climate resilience. 

Streamlining permitting for heat pumps is also critical to ensuring that California is able to meet the targets set by Governor Gavin Newsom of installing 6 million heat pumps by 2030, and achieving carbon neutrality by 2045. There is already clear momentum for heat pumps, which outpaced gas furnace shipments in 2024. However, with just under 2 million heat pumps installed throughout the state, this leaves four years to deploy over 4 million additional heat pumps––which will require quadrupling the current rate of installation. Smoothing out the heat pump permitting process is critical to accelerating heat pump installations.

Currently, California’s complex permitting system makes heat pump installation slow and unnecessarily expensive. Over 600 jurisdictions have authority over heat pump permitting, which creates a patchwork of local permitting requirements. This can pose a major challenge for contractors to learn new processes for each city or region. The current permitting process can also involve long wait times for inspection, multiple permit types, high fees, and unnecessary local requirements that can delay heat pump installation and drive up project costs. 

This bill would streamline heat pump permitting and ensure California meets its climate goals by: 

• Mandating automated permitting for standard Heat Pump installations
• Prohibiting HOAs from imposing architectural review on clean appliance installations
• Requiring a maximum of one permit for heat pump water heater installations
• Prohibiting excessive setbacks, noise restrictions, or documentation requirements on heat pump installations
• Capping fees for heat pump permits to the reasonable cost of providing service

The Heat Pump Access Act is co-sponsored by the Bay Area Air Quality Management District, the Building Decarbonization Coalition, and SPUR.

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