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Facts on New Policies for air conditioning in your home

Air Conditioning to Heat Pump (AC2HP)

 If you have an old outdoor air conditioner (AC) condenser that needs to be replaced, here are the facts on the current polices now in effect for upgrading to a Heat Pump (HP) outdoor condenser. This new “Reach Code” is called AC2HP.

Understanding AC2HP

AC2HP reach codes were designed to reduce greenhouse gas emissions and pollution — while at the same time improving comfort and reducing operating costs. This new AC2HP reach code applies to single-family homes, townhomes, and duplexes.

When Does A2CHP Go Into Effect?

The reach codes became effective 1/1/2026 for homes in Los Gatos, Palo Alto, Menlo Park, Sunnyvale, Mountain View, Saratoga, Los Altos and Los Altos Hills.

AC2HP Policies Can Save Households Money on Monthly Energy Bills

When air conditioners fail, HVAC contractors often recommend like-for-like replacements of just the old AC condenser. That used to be a less expensive repair, but U.S. production of old refrigerants (R-12 and R-22 freon) was halted as of 1/1/2020. As a result, replacing just the old outdoor AC condenser often requires changing the existing refrigerant lines and cooling coils inside the house.
 
The bad news is that cost estimates for installing a new dual-function heat pump (heating and cooling) are $3k to $7k more than installing a new outdoor air conditioning condenser and new gas furnace. The good news that a new heat pump heating and cooling system provides better comfort and — due to the higher efficiency of a heat pump system (350% efficiency for a heat pump compared to 70-90% for a gas furnace) — is often less expensive to operate in the mild SF Bay Area climate.
There are also incentives currently offered by local Community Choice Aggregators (CCAs) that can help offsett some of the cost. 

Understanding A2CHP Regulations

Comprehensive Overview of AC2HP Policies

Key Aspects of SF Bay Area AC2Hp Regulations

  • Mandate Trigger: Applies to the replacement, alteration, or new installation of central air conditioning systems in existing single-family homes, townhomes, and duplexes.
  • Core Requirement: Replaces older air conditioners with high-efficiency electric heat pumps, which provide both heating and cooling.
  • Compliance Options:
    1. Heat Pump Installation: Installing a heat pump as the primary heating and cooling system.
    2. Performance Alternative: If a heat pump is not installed, the project must incorporate additional energy efficiency measures (e.g., advanced duct sealing, insulation).
  • Regional Implementation: Cities like Berkeley and others in the Bay Area are actively adopting these, often using Model Reach Codes.
  • Exceptions: Common exceptions exist if the electrical panel lacks capacity or the required heat pump would be significantly oversized (e.g., >12,000 Btu/h larger than the existing unit).
  • Timeline: These policies are part of a broader push to phase out gas heating, with strict requirements advancing as part of 2025 local amendments.
Technical and Regulatory Context
  • Model Ordinance: Based on the 2025 California Green Building Standards Code (CALGreen) Section A4.204 and Single Family AC2HP Model Language.
  • Efficiency Standards: New systems must meet minimum efficiency ratings, such as SEER2, as enforced by local building codes.
  • Cost-Effectiveness: Studies indicate that while heat pumps have a higher upfront cost, they are deemed cost-effective over their lifetime due to energy savings, supported by studies like the 2025 Single Family AC2HP Cost-Effectiveness Analysis.
  • Compliance Verification: Adherence to these codes is verified during the permitting process by local building departments.

Impact on Homeowners

Replacing an Air Conditioner with a Heat Pump

  • The old AC condenser (outdoor compressor unit) is straightforward to replace with a heat pump.
  • If keeping your furnace and wanting to integrate the new heat pump, refrigerants in new units require new coolant lines and cooling coils and the coiling coil inside your furnace unit can be difficult to replace depending on your furnace design

For Downflow furnaces, the furnace must be removed to replace AC cooling coil.  Old furnace can be replaced but are really not needed in our climate as heat pumps do a great job of heating.

For Upflow furnaces, the AC cooling coil can be replaced, allowing homeowners to keep the old furnace.

 

To facilitate a smooth transition, homeowners should consult with  a licensed contractor to ensure installations meet all regulatory requirements and provides guidance  about available rebates to offset some of the costs associated with upgrading to AC2HP systems. Cinnamon Energy Systems is committed to providing expert guidance and support throughout this process.

AC2HP: Common Questions Answered

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What is A2CHP and how does it work?

AC2HP stands for Air Conditioning to Heat Pump, a system that provides both heating and cooling by transferring heat between the inside and outside of a home. This technology is more energy-efficient compared to traditional HVAC systems.

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Which SF Bay Area Cities are Governed by AC2HP Regulations?

Los Gatos, Palo Alto, Menlo Park, Sunnyvale, Mountain View, Saratoga, Los Altos and Los Altos Hills are currently governed by AC2HP regulations. 

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Why should I consider upgrading to AC2HP?

Upgrading to AC2HP can lead to significant energy savings, reduced carbon footprint, and improved home comfort. Additionally, many regions offer incentives and rebates for installing energy-efficient systems.

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Will A2CHP increase my home's value?

Installing an A2CHP system can potentially increase your home’s value by enhancing energy efficiency and reducing utility costs, making it more attractive to potential buyers.

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Are there any financial incentives for installing A2CHP?

Yes, many of the local Community Choice Aggregators provide financial incentives in the form of rebates to encourage the installation of energy-efficient heat pump systems.  Following are a few that currently have active incentives:

  • Silicon Valley Clean Energy
  • San Jose Clean Energy
  • Peninsula Clean Energy
  • Central Coast Community Energy
  • Silicon Valley Power
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How long does it take to install an A2CHP system?

The installation time for an AC2HP system can vary depending on the complexity of the project and the condition of the existing infrastructure. On average, it can take a few days to a week.

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Is A2CHP suitable for older homes?

Yes, A2CHP systems can be installed in older homes, though some may require additional modifications to the electrical system. Consulting with a professional can help determine the best approach for your specific situation.

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Can A2CHP systems be used in all climates?

A2CHP systems are versatile and can be used in a variety of climates. They are designed to efficiently provide heating and cooling, making them suitable for both warm and cold environments.

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What are the potential challenges of switching to A2CHP?

Some potential challenges include the initial cost of installation and the need for electrical upgrades to accommodate the new system. However, these can be mitigated by available incentives and long-term energy savings.

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How do I maintain my A2CHP system?

Regular maintenance is crucial for the optimal performance of A2CHP systems. This includes routine checks by a professional, cleaning filters, and ensuring the system is free from obstructions.

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Where can I learn more about replacing my current air conditioning unit?

Get insight from one of the top HVAC experts in the United States.  Listen to Nate Adams – The House Whisperer speaking with Barry Cinnamon on The Energy Show.

Need Assistance With Your HVAC System?

If you are ready to upgrade your home’s efficiency with a  heat pump, and need help naviagating the new AC2HP Reach Codes, contact Cinnamon Energy Systems to learn how our solutions can enhance your comfort and reduce energy costs while ensuring regulatory compliance. Our experts are here to guide you through the process and ensure you make the best choice for your home.

Complete this form for a free no obligation quote on HVAC for your SF Bay Area home.

Interest

Need Assistance With Your HVAC System?

If you are ready to upgrade your home’s efficiency with a  heat pump, and need help naviagating the new AC2HP Reach Codes, contact Cinnamon Energy Systems to learn how our solutions can enhance your comfort and reduce energy costs while ensuring regulatory compliance. Our experts are here to guide you through the process and ensure you make the best choice for your home.

Complete this form for a free no obligation quote on HVAC for your SF Bay Area home.

Interest