SAN JOSE CLEAN
ENERGY PROGRAMS
ROADMAP UPDATE (d)3
Transportation & Environment Committee
Lori Mitchell, Director
Kate Ziemba, Deputy Director
April 13, 2026
Background
AGENDA
1 2
3 4
Current Programs
Recommended Fiscal Year (FY) 26-27
programs
Recommended 2026-2031
Programs Roadmap
2 Adopted by City Council in 2021
We create customer programs that:
• Reduce greenhouse gas emissions
• Promote equity, increase affordability,
and support environmental justice
(EJ) communities
• Benefit customers and community
• Maintain or improve financial status of SJCE
• Align with Climate Smart San José
PROGRAM GUIDING
PRINCIPLES
3 In 2026, SJCE
customers will pay
$132 million to PG&E.
SJCE anticipates using
$108 million in
reserves in 2026 to
offset higher PCIA.
Given 2027 PCIA
uncertainty, a cautious
fiscal approach is
warranted.
POWER CHARGE INDIFFERENCE ADJUSTMENT
(PCIA) COSTLY AND UNPREDICTABLE
SJCE actively offsets PCIA costs to keep customer rates lower 4 CURRENT PROGRAMS
5 Area Program Description
T EV Instant Rebates Rebates for income-qualified customers to buy new/used EVs T Multifamily EV Charger Incentive Rebates for Level 1 & 2 chargers at multifamily properties 5 hubs (8 DCFC ports each) at libraries and community centers in charging deserts; retail charging rates estimated to be below market rate; energizing spring 2027 T Fast Charging Hubs Pilot
Free trilingual phone/email support on EVs, home electrification, energy efficiency, solar/storage, etc. Free audits and home electrification plans.
T, B, D Go Electric Advisor
Rebates for heat pump HVAC and water heaters, prewiring for future electrification, panel upgrades, circuit pausers/splitters, and battery storage B, D EcoHome Rebate
B, D EcoHome Payment Plan Interest-free on-bill financing for above home upgrades B, T Workforce development 3 initiatives: contractor incentives, training equipment grants, scholarships D, A Solar Access CPUC-funded community solar program for 915 participants D Peak Rewards Demand side resource with behavioral and automated demand response A Electricity Bill Relief Partnership with Sacred Heart to help households avoid disconnection A SJ Cares 10% discount on SJCE charges for CARE, FERA, and affordable housing customers T, B Education Trilingual educational programming on EVs and heat pumps
CURRENT PROGRAMS
T= transportation
B= buildings
D= distributed energy resources
A= affordability
6 IMPACT OF CURRENT PROGRAMS
Measure/program Count to date
82 direct current fast chargers,
267 Level 2 chargers
Electric vehicle (EV)
chargers (CALeVIP*)
EVs (EV Instant 113 EVs
Rebates)
838 heat pump HVAC
262 heat pump water heaters
Heat pumps
(EcoHome)
Residential batteries 107 battery storage systems
(EcoHome)
5,260 participants, 1.75
megawatts of flexible load
Peak Rewards
Through 2025
$29.4M lifetime
customer savings
46,500 metric tons of CO2
avoided
35,000,000
kilowatt-hours saved
(same as the annual usage
of 7,200 homes)
*California Electric Vehicle Infrastructure Project
7 RECOMMENDED FY 2026-
2027 PROGRAMS
8 • Staff receives input from the Climate Advisory Commission and has a staff dedicated to community engagement and listening to community needs
• Staff utilizes a scoring framework to help prioritize programs • Weighted metrics tied to Council-approved guiding principles (highest to lowest):
• Greenhouse gas emissions reductions,
• Prioritizing electrification in communities where incentives will have the most impact,
• Customer savings,
• Peak demand reductions, and
• Fiscal impact for SJCE
PROGRAM INPUT & SCORING
9 Maximum cost: $10 million
• Continue to offer 12 current, proven programs
• Add two new programs to fill gaps:
• Decrease overall budget due to high PCIA and market conditions causing lower adoption of EVs, batteries, and heat pumps RECOMMENDED FY 2026-2027 PROGRAMS
Program Description
Provide free technical assistance from an external consultant to commercial customers, including foodservice, to help them electrify their buildings and implement energy efficiency Commercial Technical
Assistance
Offer low to no cost portable heat pumps to renters, working with equipment manufacturers, distributors, and communitybased organizations to test equipment delivery models Direct-to-Renter Portable
Heat Pump Pilot
Estimated
impacts
$16M lifetime
customer savings
33,400 metric tons
of CO2avoided
10 2026-2031 PROGRAMS
ROADMAP
11 Process
• First SJCE Programs Roadmap in 2021 outlines the types of programs SJCE may pursue over the coming years
• Updated every 5 years
• Detailed prioritization, program design, and recommendations are evaluated annually and brought forward to Council for consideration Community Engagement
• Robust engagement (Aug 2025-Feb 2026)
• 1,400 responses to two customer surveys,
three residential listening sessions, and 80+ stakeholder interviews with businesses, community-based organizations, labor, environmental groups, City departments
• Broad, inclusive reach
• Engaged renters & homeowners across income levels,
with multilingual formats
DIRECTION FOR THE NEXT 5
YEARS
12 • Affordability is the top driver
• Customers prioritize lower bills over environmental
benefits; upfront costs and bill uncertainty are key
barriers
• Barriers are structural, not behavioral
• Housing constraints (renters, multifamily,
infrastructure gaps) limit participation
• Programs must deliver practical value
• Strong support (91% positive) for SJCE programs
• Must provide direct bill savings, renter access, and
simple participation
WHAT WE HEARD
13 • Make clean energy affordable and accessible
• Examples: bill-neutral solar + storage + electrification, direct-torenter pilots • Accelerate adoption of EVs, heat pumps, and efficient buildings • Examples: EV incentives & financing, multifamily electrification, fleet support
• Invest in charging, especially for multifamily and underserved areas
• Examples: fast charging hubs, virtual submetering for apartments • Leverage distributed energy and flexibility to reduce costs and support the grid
• Examples: batteries, Peak Rewards expansion, midday rate • Test integrated, high-impact solutions
• Example: aggregated, neighborhood scale electrification projects FUTURE PROGRAMS: STRATEGIC DIRECTION
14 ACKNOWLEDGMENT FOR STAKEHOLDERS
We appreciate the time,
expertise, and feedback
we received.
Ava Community Energy
Balance Insurance LLC
Bay Area Council
Bay Area Regional Energy Network
Bidgely
Breathe California of the Bay Area
Building Electrification Institute
Building Power Resource Center
California Solar and Storage Alliance
ChargePoint
Cinnamon Energy Systems
Clean Power SF
Climate Reality Project Silicon Valley
Climate Smart San José
Construction Trades Worker Initiative
Ecology Action of Santa Cruz
Emerald Cities Collaborative
Energy Solutions
Eguana Technologies
Flexenergi
Forth
FUSE Service
GoodLeap
GRID Alternatives
Haven Energy
Infinium
International Brotherhood of Electrical Workers 332
International Children’s Assistance Network
Irbis HVAC
Jazet Makeup Salon
Latino Business Foundation of Silicon Valley
Lattice Semiconductor
Lunar Energy
MCE
Metropolitan Transportation Commission
Mothers Out Front Silicon Valley
Mujeres Empresarias Tomando Acción LLC
Optiwatt
Origin Energy
Pacific Gas & Electric
Peninsula Clean Energy
Rainforest Automation
Resource Innovations
Rising Sun Center for Opportunity
Sacred Heart Community Services
Samsung Semiconductor
San Diego Community Power
San Jose City College
San Jose Climate Advisory Commission
San Jose Community Energy Advocates
San José Department of Transportation
San José Environmental Services Department
San José Housing Department
San José Mineta International Airport
San José Public Works Department
San José State University
Santa Clara County
Santa Clara County Housing Authority
Santa Clara Valley Water District
Self-Help Climate
Sheet Metal Workers’ Local Union 104
Sierra Club Loma Prieta Chapter
Silicon Valley Clean Energy
Sonoma Clean Power
TECH Clean California
Tortas Ahogadas
Tropicana Foods
United Association of Journeymen and
Apprentices of the Plumbing and Pipe Fitting
Industry, Local 393
Uplight
Work2Future
Working Partnerships
Zuniga’s Restaurant
15 • Recommendation: Accept this
update on SJCE’s Programs
Roadmap and recommend this item
for full Council consideration at the
May 19, 2026, City Council
meeting.
QUESTIONS?
• Staff
• Lori Mitchell, Director
• Kate Ziemba, Deputy Director
16