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Energy Savings Assistance (ESA) Program
Heat Pumps - Frequently Asked Questions

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What are heat pumps, and how are they different from traditional systems?

Heat pumps work by transferring heat from one place to another, functioning as cooling and heating systems. This technology is the most efficient way to heat water, as well as to heat and cool your home. In addition, heat pump air conditioning systems heat and cool throughout the year. In colder months, heat pumps work in reverse, extracting heat from outside air and bringing it indoors to warm your home. Similarly, Heat Pump Water Heaters (HPWHs) extract heat from the air to efficiently heat water. These systems are clean, efficient alternatives to gas appliances.

Unlike traditional Heating, Ventilation, and Air Conditioning (HVAC) systems, which push out large amounts of hot or cold air and then turn off, heat pump HVACs use steady airflow to gradually moderate temperatures. HPWHs also operate efficiently, slowly heating water in a tank (similar to traditional water heaters) but with an additional electric resistance heating element for instant hot water during high-usage periods.

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How will getting a heat pump affect my energy bills?

As you transition from gas to electric appliances, your overall electricity usage and costs will rise. However, because electric appliances and vehicles are energy efficient and save costs compared to those using fossil fuels, most customers can expect overall energy bill savings over the course of a year. This takes into consideration a potential electricity bill increase; offset by the savings you will achieve from removing a gas appliance. Actual bill impacts would depend on various factors, such as your previous heating technology, household energy consumption, local climate conditions, etc.

To further manage energy costs, households with clean energy technologies like heat pump systems can also take advantage of SCE’s Time-Of-Use (TOU) rate plans, including our specially-designed TOU-D-PRIME rate. These plans offer lower rates during off-peak and super off-peak periods, to help avoid higher weekday rates when energy resources are in demand. To find out which rate plan may best suit your needs, visit sce.com/rates.

If you have an HPWH, you may also receive an additional baseline allocation if you are enrolled in our TOU-D-4-9 PM or TOU-D-5-8 PM plan. This allocation provides credit to offset the charges for HPWH electricity usage. If you are already enrolled in an eligible TOU rate and have recently installed an HPWH, please call us at 1-866-743-1645. We’ll be glad to share more information and help you get the additional baseline allocation.

Lastly, income-qualified households may be eligible for the Family Electric Rate Assistance (FERA) and California Alternate Rates for Energy (CARE) programs, which can reduce energy bills by up to 30%. To apply and find out if you’re eligible, visit sce.com/feracare.

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Do I have to upgrade my electric service panel to install a heat pump?

Existing homes are wired to accommodate a specific amount of electricity. Some older homes may have less capacity, but if your new appliances fit within your panel's limits, you may not need a panel upgrade. However, if you require more power than the current panel can handle, an upgrade will be necessary.

After you apply and qualify for the Energy Savings Assistance (ESA) program, an SCE-authorized contractor will visit your home to gather information and see if it’s possible to install one or more appliances or services. They will also help determine whether an electric panel upgrade is required.

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Can the SCE electrical grid support all-electric homes?

Yes. SCE continually evaluates and plans for grid improvements to adapt to evolving energy demands and deliver safe, dependable energy for all customers, including those with all-electric homes. We are also actively working to increase grid capacity and reliability, especially now that more people are switching from gas to electric power.

Also, all-electric neighborhoods do not show much higher peak electricity usage than mixed-fuel homes. While they do consume more electricity, it usually happens during periods of lower overall demand.

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How often do power outages occur, and how do they affect heat pumps?

Outages are infrequent for the average SCE customer. In 2022, the average customer experienced one outage lasting about an hour and 40 minutes (some had more, others none). For details about electric system reliability, visit sce.com/outage-center/outage-information/reliability-reports.

In the unlikely event of an outage, space and water heat pumps will temporarily lose power and you won’t be able to fully use them during the outage (the same is true for many gas appliances that use electronic ignitions). However, the hot water inside an HPWH will still be stored and available during the outage, until you use it all.

If you are in a Tier 2 or Tier 3 high-risk fire zone, visit sce.com/rebates for information on portable generator rebates that may help power your home during outages.

If you live in a high-fire risk area or other qualifying community, you may also be eligible to have an energy storage system installed, at a low cost to you, through our Self-Generation Incentive Program (SGIP). For more information, visit sce.com/sgip.

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