Supplemental Memorandum, 5/8/26 — San Jose City Council, May 19, 2026

COUNCIL AGENDA: 5/19/26
FILE: 26-592
ITEM: 6.1

TO: HONORABLE MAYOR FROM: Lori Mitchell

AND CITY COUNCIL

SUBJECT: San José Clean Energy Programs DATE: May 5, 2026 Roadmap Status Report

Approved Date
5/8/2026

SUPPLEMENTAL

REASON FOR SUPPLEMENTAL

On April 13, 2026, the Transportation and Environment Committee approved referring the Energy Department’s San José Clean Energy Programs Roadmap status report to the full City Council for consideration at its May 19, 2026 meeting. This supplemental memorandum provides an updated recommendation for City Council consideration.

Approval of this recommendation would authorize the Energy Department to implement the proposed programs within the maximum $10 million budget (Table – SJCE Programs Estimated Cost Breakdown for Fiscal Year 2026-2027) previously detailed in the Transportation and Environment Committee memorandum. 1 RECOMMENDATION

(a)
Accept the status report on the San José Clean Energy Programs Roadmap. (b) Adopt a resolution:
(1)
Approving the proposed programs presented in the San José Clean Energy Programs Roadmap update;
(2) Authorizing the City Manager or her designee to negotiate and execute contract(s) with consultant(s) to implement the Commercial Technical Assistance services for up to four years starting in Fiscal Year 2026-2027 and up to $650,000 from the San José Clean Energy Operating Fund, subject to the appropriation of funds; and

1 https://sanjose.legistar.com/View.ashx?M=F&ID=15375618&GUID=FC48C3EA-56BC-4934-810D- 2A7AEEE4EC67

HONORABLE MAYOR AND CITY COUNCIL
May 5, 2026
Subject: San José Clean Energy Programs Roadmap Status Report

Page 2 ends

(3) Authorizing the City Manager or her designee to negotiate and execute contract(s) with consultant(s) to implement the Direct-to-Renter Portable Heat Pump Pilot services for up to two years starting in FY 2026-2027 and up to $300,000 from the San José Clean Energy Operating Fund, subject to the appropriation of funds.

BACKGROUND

The table below shows the recommended programs and their estimated costs that Energy Department staff will implement for San José Clean Energy residential and commercial customers in FY 2026-2027.

Table - SJCE Programs Estimated Cost Breakdown for FY 2026-2027 Program Estimated Cost
Fast Charging Hubs Pilot Program $450,000
Multifamily EV Charger Incentive $740,000
EV Instant Rebates $2,200,000
Go Electric Education $235,000
Go Electric Advisor $305,000
EcoHome Rebate – Heat Pumps $2,550,000
EcoHome Rebate – Batteries $500,000
EcoHome Payment Plan* $145,000
Direct-to-Renter Portable Heat Pump Pilot $200,000
Commercial Technical Assistance $125,000
Workforce development $400,000
Solar Access $400,000
Peak Rewards Virtual Power Plant $1,300,000
Electricity Bill Relief $450,000
Total $10,000,000
*Factors in repayment from existing loans
Since the release of the proposed SJCE 2026-2031 Programs Roadmap for the April 13, 2026, Transportation and Environment Committee meeting, staff has incorporated additional input from stakeholders. Namely, this update clarifies the emphasis on affordability as a cross-cutting priority and expands on which programs are included in the “Affordability” energy program area.

HONORABLE MAYOR AND CITY COUNCIL
May 5, 2026
Subject: San José Clean Energy Programs Roadmap Status Report

Page 3 ends

COORDINATION
This memorandum has been coordinated with the City Attorney’s Office and the City Manager’s Budget Office.

/s/
Lori Mitchell
Director, Energy Department

For questions, please contact Kate Ziemba, Deputy Director, Energy Department at [email protected].

ATTACHMENT
Proposed SJCE 2026-2031 Programs Roadmap

Programs Roadmap
2026-2031
Attachment: Proposed SJCE 2026-2031 Programs Roadmap
Table of contents
Executive Summary
Introduction
Pathway to Carbon Neutrality
Program Impact 2020-2025
Program Areas
Program Prioritization Framework
How We Got Here
Current and Past Programs
Future Programs
Acknowledgments
03 04
05 07
09 11
14 19
23 30
PAGE 2SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
Executive Summary
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 3
San José Clean Energy (SJCE) offers customer programs to ensure that clean electricity service delivers tangible, local benefits aligned with San José’s climate and community priorities. When the San José City Council established SJCE, it directed the utility not only to provide cleaner power at competitive rates, but also to reinvest revenues into San José–specific energy programs that advance greenhouse gas reductions, expand access to clean energy, and address community needs.

The 2026 Programs Roadmap provides a five-year planning framework to guide customer program investments from 2026 to 2031. It reflects on program performance from 2020 to 2025, outlines how SJCE programs contribute to the City’s Pathway to Carbon Neutrality, and presents strategic focus areas and exploratory program concepts to inform future decisions.

Since launching customer programs in 2020, SJCE has:
• Avoided 46,500 metric tons of CO₂, equivalent to removing 10,843 gas cars from the road for one year
• Delivered $29.4 million in estimated customer savings • Invested $9 million and leveraged $9.4 million in external funding to deliver 16 programs

Programs are organized into four core areas—Transportation, Buildings, Distributed Energy Resources, and Affordability—with equity serving as a foundational principle across all investments.

The Roadmap also introduces SJCE’s data-driven Program Prioritization Framework, which evaluates proposed programs based on greenhouse gas reductions, equity impact, customer savings, peak demand benefits, and fiscal responsibility.

Future program concepts included in this document are exploratory. Any program that advances will undergo detailed design, evaluation, City Council review, and budget allocation and approval. As markets, policies, and community needs evolve, SJCE will continue adapting its program portfolio to ensure investments deliver measurable climate impact, affordability, and equitable access to clean energy. "At a time when Californians
suffer the second-
highest energy prices in
the country, San José is
showing we can lower
costs for families and
businesses while creating
a carbon neutral future.

SJCE is delivering cleaner
power, lowering emissions
and providing real benefits
for residents — with
affordability at the center
of every program."
Matt Mahan
Mayor of
City of San José
PAGE 4SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
San José Clean Energy (SJCE) was created
to give our community more control over their
energy future—delivering cleaner electricity at
fair rates while addressing rising energy costs,
climate risks, and unequal access to clean energy.

Those values remain unchanged, but our ability to
act on them has grown.

Over the past several years, SJCE has
established a strong and stable foundation
through long-term, cost-effective renewable
energy contracts, disciplined financial
management, and building operating reserves.

This stability has allowed us to shift from planning
to making sustained, meaningful investments in
community-focused customer programs.

This updated Programs Roadmap looks ahead
to the next phase of SJCE’s work from 2026 to
2031, responding to a rapidly evolving policy
and market landscape. It outlines how customer
programs—spanning electric vehicles (EVs),
efficient electric appliances and equipment,
demand response, and distributed energy
resources—will lower energy bills, improve air
quality, and strengthen resilience while advancing
the City’s climate goals.

Equitable access remains central to this work.

San José is a city of extraordinary diversity, yet
energy costs and environmental burdens are not
shared evenly. SJCE’s programs are designed to
ensure that the financial and health benefits of
clean energy are accessible to all communities,
particularly those that have historically faced
barriers to participation.

Built on five years of program experience, this
Roadmap reflects an organization focused on
delivering and scaling durable, well-designed
programs aligned with City priorities and
grounded in real customer benefits. Looking
ahead, SJCE remains committed to transparency,
community partnership, and thoughtful
investment in programs that strengthen
affordability and broaden access to clean energy
across San José.

Lori Mitchell
Director of City of San José Energy Department,
Administrators of SJCE
Introduction
"In just five years, SJCE has grown from a new initiative into a cornerstone of the City’s climate strategy. Its programs demonstrate how thoughtful public investment can reduce emissions, support our residents, and strengthen community resilience." Jennifer Maguire
City Manager

PAGE 5
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
03 PATHWAY TO

CARBON NEUTRALITY

SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 6
SJCE Customer Programs
Advancing San José’s Pathway to Carbon Neutrality
03 Pathway to Carbon Neutrality
STRATEGY 1
Power our community with
100% c arbon- neutral electricity
• Virtual power plant programs
• Battery stor age inc entives
• Electric vehicle inc entives
• EV cha rging infrastructure incentives
• Fleet electriﬁcation support
• E-bike inc entives
• C lean mobility programs
• Heat pump inc entives
• Building electriﬁcation support
STRATEG Y 2
Move to zero-emission
vehicles
STRATEG Y 3
Reduce the miles we travel in
our vehicles by at least 20%
STRATEG Y 4
Switch our a ppliances
from fossil fuel to electric
"Carbon neutrality cannot
be achieved through a
single policy, program, or
technology, but rather
through coordinated,
sustained action.

Electrification powered
by clean electricity and
supported by well-
designed state, regional,
and local programs offers
a clear pathway to reduce
emissions at the pace and
scale our communities and
climate demand."
Viridiana Nguyen-Santoyo
Assistant Policy Director,
Building Electrification
Institute
In 2018, the City of San José adopted Climate Smart San José, the City’s long-term framework for reducing greenhouse gas emissions across energy, buildings, transportation, and waste.

Building on that foundation, in 2022 the City adopted the Pathway to Carbon Neutrality, which organizes the transition around four complementary strategies that together define how San José will make the most progress toward its climate targets.

SJCE has a role to play in all four of the pathway’s strategies. Our core function is delivering a clean electricity supply; today we provide more than 62% renewable energy, surpassing the state’s 2030 clean energy milestone five years ahead of schedule. SJCE also reinvests in customer programs that use this clean electricity to power buildings and vehicles, reduce emissions during peak demand, and support more efficient mobility choices. These programs advance the City’s carbon neutrality strategy by playing an important complementary role to policy and market trends:
accelerating early adoption, layering with other incentives, and improving equitable access to clean energy technologies.

PAGE 7
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
Program Impact
2020–2025
04 "Community choice aggregators empower local governments to lead on clean energy while reflecting the priorities of their communities. SJCE is demonstrating how CCAs can pair clean power with innovative programs that advance affordability, equity, and local impact across California." Beth Vaughan
Chief Executive Officer,
California Community Choice Association
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 8
04 Program Impact 2020–2025
"California’s climate goals are ambitious, but success depends on local implementation. SJCE’s programs translate statewide policy into measurable emissions reductions across buildings and transportation, providing the on-the-ground execution needed to deliver the state’s long-term climate commitments."
David Cohen, Councilmember
Transportation and Environment Committee Chair
$29.4 Million
through 2025
Our programs saved
customers an estimated
46,500
Metric Tons of CO2
This is equivalent to taking 10,843
cars off the road for a year
Greenhouse gas
emission reductions:

PAGE 9
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
05 Program Areas
"Equity must be built
into clean energy
programs from the
start. By prioritizing
program investments
for environmental justice
communities, SJCE is
intentionally expanding
access, reducing energy
burdens, and ensuring
benefits reach those who
have faced the greatest
barriers. I have been proud
to support SJCE's mission
since my time on the
San José City Council
and look forward to their
future programming."
Ash Kalra
Assemblymember
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 10
Our programs are designed to support the City’s climate goals while meeting the diverse needs of the people who live and work in San José. To bring clarity and focus to this work, our programs are organized into four core program areas: Transportation, Buildings Distributed Energy Resources (DERs), and Affordability. Together, these areas reflect where SJCE can have the greatest impact in advancing clean energy, reducing emissions, and supporting customers through the energy transition.

Equity as a Foundation and a Direction
Equity is foundational to SJCE’s programs. It shapes how programs are designed, who they are intended to serve, and how barriers to participation are addressed. From upfront costs and housing type to language access and customer awareness, historic and present-day inequities influence who can benefit from clean energy investments. An equity-centered approach requires acknowledging these barriers and intentionally designing programs to expand access.

At the same time, equity is not a box to be checked or a condition that can be fully achieved. It is a direction we continuously work toward as technologies, markets, and community needs evolve.

SJCE uses equity as a guiding principle to assess progress, identify gaps, and adapt programs over time to better serve customers who have been historically underserved or disproportionately burdened. 05 Program Areas
Transportation Buildings
Distributed
Energy
Resources
Aﬀordability
Equity is
Foundational
Equity is Foundational
Distributed
Energy
Resources

AUG SEPT OCT NOV DEC JAN FEB MAR
Aug–Mar
80+ interviews with market actors, environmental groups, labor, businesses, community-based organizations (CBOs), and other City departments Aug–Sept
Pop-up activity
at public events
20262025
Timeline
Aug
Customer survey
Jan
Climate Advisory
Commission input
Oct–Nov
Residential listening
sessions
Jan–Feb
Program concepts
feedback survey
STRATEGY 1
Power our community with
100% carbon-neutral electricity
• Virtual power plant programs
• Battery storage incentives
• Electric vehicle incentives
• EV charging infrastructure incentives
• Fleet electriﬁcation support
• E-bike incentives
• Clean mobility programs
• Heat pump incentives
• Energy eﬃciency programs
• Building electriﬁcation support
STRATEGY 2
Move to zero-emission
vehicles
STRATEGY 3
Reduce the miles we travel in
our vehicles by at least 20%
STRATEGY 4
Switch our appliances
from fossil fuel to electric
AﬀordabilityTransportation Buildings
PAGE 11
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
Program
Prioritization
Framework
06 1,400
residents engaged
through surveys and
listening sessions
"I am retired on Social
Security and a couple of
small pensions. I might not
have replaced [my 17-year-
old gas water heater] with
a heat pump water heater
without the rebate.

It helped me a lot."
EcoHome Rebate
program participant
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 12
Rigorous Program Design and Prioritization Framework
SJCE takes a rigorous and data-driven approach to deciding which customer programs to recommend to the City Council each year. Our goal is to direct limited program dollars to initiatives that deliver the greatest public value—measured not only in emissions reductions, but also in affordability, equity, and long-term financial sustainability for the utility.

Program Guiding Principles
All SJCE customer programs are designed to align with a common set of guiding principles adopted by the City Council in 2021.

We prioritize programs that:
• Reduce greenhouse gas emissions
• Promote equity, increase affordability, and support
environmental justice communities
• Deliver meaningful benefits to customers
• Maintain or strengthen SJCE’s long-term financial position • Align with Climate Smart San José
These principles ensure that individual programs advance both near-term customer value and long-term City and utility objectives.

From Market Insight to Council Recommendation
Each year, SJCE follows a structured process to identify, design, and prioritize new and expanded programs:

1. M arket Research and Stakeholder Input
Staff begin by reviewing program offerings from peer utilities and community choice aggregators, assessing clean energy technology adoption trends, and engaging stakeholders to understand customer needs, market barriers, and emerging opportunities.

2. P rogram Design and Budget Development
Potential programs are developed into detailed concepts, including projected participation, customer impacts, emissions reductions, and budget requirements.

3. Q uantitative Program Scoring and Prioritization
Proposed programs are evaluated using a multi-metric scoring framework that compares program performance across five dimensions: greenhouse gas reductions, equity investment, 06 Program Prioritization Framework
Award-Winning
Energy
2024 Institute of Local
Government (ILG)
Innovation in Clean
Transportation Award for
EV Education and Outreach
2024 CalCCA Community
Impact Award for EV
Education and Outreach
2023 ILG Innovation in
Clean Energy Award for
Solar Access
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 13
customer savings, peak demand impacts, and fiscal impact to SJCE. Each metric is weighted to reflect City and SJCE priorities, ensuring that no single outcome dominates the decision-making process.

To enable fair comparison across very different types of programs, scores are normalized to account for scale differences and outliers and then combined into a composite score. This approach allows SJCE to compare diverse program options—such as building electrification, electric mobility, and demand flexibility—using a consistent and transparent framework.

Balancing Impact, Equity, and Financial Stewardship
While quantitative scoring provides a rigorous foundation for prioritization, final recommendations also reflect implementation readiness and alignment with City policy direction. This combination of data-driven evaluation and strategic review ensures that SJCE’s program portfolio balances climate impact, customer affordability, equity outcomes, and responsible stewardship of customer funds.

Together, this framework reflects SJCE’s commitment to making program investments deliberately, transparently, and with accountability—recognizing that customer programs are one of the most important tools the City has to translate clean energy policy into real-world outcomes for San José residents and businesses. 06 Program Prioritization Framework

PAGE 14
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
How We
Got Here
07 SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 15
Market Research
The SJCE team regularly engages with market actors, thought leaders, and a variety of community-based stakeholders and draws on the latest research to ensure our customers are provided the best program offerings.

Community Engagement and Input
Developing a five-year Programs Roadmap requires balancing long-term climate goals with the lived experiences of customers navigating today’s energy costs, housing conditions, and technology choices. To inform this Roadmap, SJCE undertook a multi-phase community engagement process designed to listen, learn, and validate priorities across a diverse set of customers and stakeholders.

Our approach emphasized breadth and depth. We combined
broad, statistically reliable data with targeted conversations that allowed participants to share context, nuance, and lived experience. Engagement activities were intentionally conducted in multiple languages and formats to reach renters and homeowners, customers at different income levels, and community members with varying levels of familiarity with clean energy programs. 07 How We Got Here

By combining on-the-
ground program delivery
with policy leadership,
SJCE is helping accelerate
equitable electrification
across the Bay Area.”
Sam Fishman
Sustainability and
Resilience Policy Manager,
San Francisco Bay Area
Planning and Urban
Research Association (SPUR)
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 16
07 How We Got Here
This process was not intended to produce a single consensus view, but to surface patterns, tensions, and tradeoffs that could inform program design. Importantly, engagement did not end with listening alone. Findings from earlier phases were carried forward and posed back to the community through a follow-up survey, allowing residents to react to program ideas and validate that their input was accurately reflected.

Together, these engagement efforts ensured that the Roadmap reflects both community priorities and the practical realities that shape participation in clean energy programs. SJCE will treat this Roadmap as a living framework, maintaining ongoing engagement with community members and stakeholders to shape programs as they move from concept to implementation.

What We Heard
Across surveys, focus groups, interviews, and advisory input, several consistent themes emerged.

Affordability Shapes Energy Decisions
Cost and affordability are central to how customers experience energy and evaluate clean energy opportunities. Customers consistently identified keeping energy bills low as their top priority, often outweighing environmental motivations. While there is strong interest in clean energy technologies, residents cited high upfront costs and uncertainty about long-term bill impacts as significant barriers to action.

This dynamic was especially pronounced among renters and lower- income households, who often face limited control over their homes and heightened sensitivity to bill impacts.

Small business customers echoed residents’ sentiments and emphasized that rising energy bills are a major strain on already thin margins. Business owners stressed that participation depends on clear bill savings, minimal disruption to operations, and simple, upfront support. Though clean energy upgrades are of interest, proactive upgrades feel financially out of reach without substantial cost coverage.

SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 17
Interest Is High, Barriers Are Structural
Customers across engagement activities expressed interest in energy efficiency, electrification, and clean energy technologies.

However, participation is often constrained by factors beyond individual choice, including:
• Housing type and renter status
• Landlord approval and building limitations
• Upfront costs and long payback periods
• Limited access to charging or cooling infrastructure
For renters, these barriers were particularly acute. Participants described coping strategies during extreme heat, limited access to cooling, and a lack of renter-friendly program options, even when the need for improvements was clear.

For lower-income renters in particular, these barriers translate into energy insecurity; participants shared that they worry about high bills and routinely sacrifice comfort to keep costs manageable.

Some customers expressed frustration that even when they conserve energy, their bills do not decline in proportion to their efforts, reflecting broader energy rate pressures that limit the savings customers are able to realize. These conditions make clear that SJCE programs must go beyond education and behavior change by delivering direct bill relief, renter-accessible solutions, and program designs that deliver meaningful savings regardless of housing type or ability to make capital investments. 07 How We Got Here

"Community choice
aggregation is grounded
in the idea that energy
decisions should reflect
community needs. By
listening early, staying in
dialogue, and partnering
with trusted organizations,
SJCE ensures programs
are shaped by lived
experience and real-world
conditions."
Quyen Vuong
Executive Director,
International Children’s
Assistance Network (ICAN)
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 18
07 How We Got Here
Clean Transportation Is Appealing but Unevenly Accessible Interest in—and adoption of—electric vehicles is strong across the region, reflecting broad support for clean transportation. However, access remains uneven, particularly for residents of multifamily housing, where limited charging infrastructure and higher upfront costs present persistent barriers. These perspectives reflect practical constraints rather than resistance to EVs, highlighting multifamily housing as a critical gap and a significant opportunity for expanding equitable access through targeted infrastructure and affordability-focused programs.

Support for Clean Energy Goals
Across engagement efforts, participants expressed broad alignment with San José’s clean energy and climate goals.

Community input reinforced the need for programs that are affordable, renter-inclusive, transparent, and responsive to real-world constraints—and for an energy transition that delivers benefits without increasing inequities.

PAGE 19
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
Current and
Past Programs
08 SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 20
Affordability in Practice
Affordability is a cross-cutting priority across SJCE’s program portfolio and is integrated into program design, prioritization, and implementation. Programs included in the Affordability program area are those that:
• Reduce cost burden as a primary design objective
(not just an outcome) and/or
• Target participation from customers facing financial
or structural barriers and/or
• Deliver ongoing, sustained bill savings over time
These programs may take different forms, including direct financial incentives, no- or low-cost offerings, or solutions that enable customers to better manage and reduce their energy use. This approach ensures that affordability remains a visible and actionable priority, while recognizing that many programs across the portfolio contribute to lowering costs.
08 Current and Past Programs
91%
of survey respondents
who expressed an
opinion agree that
SJCE programs are
valuable to San José.

SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 21
The following SJCE programs are open as of March 2026.

Key
T = Transportation B = Bu ildings D = Di stributed Energy Resources A = Aff ordability Current and Past Programs08
Open Programs
Area Program Description
T, A EV Instant Rebates Rebates for income-qualified customers to buy or lease new or used EVs T Multifamily EV
Charger Incentive
Rebates for Level 1 and 2 chargers at multifamily properties T, B Electrification
education
Educational programming in English, Spanish, and Vietnamese on EVs and heat pumps
T, B,
D
Go Electric
Advisor
Free phone and email support in English, Spanish, and Vietnamese on EVs, home electrification, energy efficiency, solar/storage, and rate plans, plus free audits and home electrification plans
B, D EcoHome
Rebate
Rebates for heat pump HVAC and heat pump water heaters, prewiring for future electrification, panel upgrades, circuit pausers/splitters, and battery storage
B, D EcoHome
Payment Plan
Interest-free on-bill financing for above home upgrades B, T Workforce
development
Contractor incentives, grants for electrification training equipment, and scholarships for underrepresented students
D, A Peak Rewards Demand side resource with behavioral and automated demand response participation options
D, A Solar Access Community solar program for 900 low-income households funded by the California Public Utilities Commission (CPUC)
D, A Low-income
solar and battery
storage offer
No-cost partnership to promote state incentives for solar and storage to qualifying residents and aid with applications
A Electricity
Bill Relief
Disconnection mitigation and direct bill relief for low-income at-risk households
A SJ Cares 10% discount on SJCE charges for customers enrolled in state bill discount programs or who live in affordable housing
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 22
08 Current and Past Programs
“Seven years ago, we didn’t need air
conditioning. Now it’s a necessity. SJCE
helped me save my business by investing
in our future with renovations to keep my
clients coming back.”
Lisa Alberino
Owner of labarre studios and Energy
Efficient Business Program participant
“For the families who come to us in crisis,
electricity isn’t a luxury—it’s a necessity. The
San José Electricity Bill Relief program helped
prevent disconnections and gave families
breathing room when they needed it most.”
Erin Stanton
Homelessness Prevention System Director,
Sacred Heart Community Service
Closed Programs
Area Program Description
D Midday Super
Saver Pilot
Electrification rate plan with lower residential electricity rates from 9 a.m. to 2 p.m. to incentivize middle-of-the-day EV charging
B, A Home Appliance
Savings Program
CPUC-funded energy efficiency program offering deep savings on energy-efficient refrigerators, washers, electric dryers, and induction cooktops and free smart thermostats and smart plugs for qualifying single-family households
B, A Energy Efficient
Business Program
CPUC-funded energy efficiency program offering deep savings on HVAC, refrigeration, and water heating installations for commercial customers T CALeVIP Rebate program for Level 2 and fast charging infrastructure co-funded by SJCE and the California Energy Commission
The following SJCE programs were offered between December 2020 and September 2025.

Key
T = Transportation B = Bu ildings D = Di stributed Energy Resources A = Aff ordability PAGE 23
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
09 Future
Programs

SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 24
09 Future Programs
Future Programs
The following 22 program concepts represent a forward-looking portfolio of strategic investments that SJCE may pursue over the next five years. These concepts are informed by research and input from residents, businesses, CBOs, and other stakeholders. Programs that move forward will undergo detailed evaluation, scoring, and refinement, as well as City Council review and approval. As markets, technologies, and community needs evolve, SJCE will remain adaptive, refining program design and priorities in response to new information and policy direction.

Program Concept Spotlights
"Achieving climate goals requires a skilled and trained workforce to deliver projects at scale. SJCE’s commitment to high road contractor engagement and workforce development prepares workers for the clean energy economy while supporting strong labor standards and family-sustaining jobs." Vince Sugrue, State Legislative Director, Sheet Metal Workers' Local Union No. 104 Direct Current Fast Charging (DCFC)
Hubs Phase 2-3
Building on Phase 1 at five City-owned sites, SJCE will expand DC fast charging hubs to additional City properties where feasible, using existing tolling agreements to scale efficiently.

Later phases will focus on expansion to private locations in parts of San José lacking public charging infrastructure. The charging network will recruit local commercial fleets through charging subscriptions and other innovative pricing structures to bolster utilization and provide affordable charging options for fleets looking to electrify.

E-Bike Incentive Program
SJCE is exploring an e-bike incentive program designed to deliver measurable reductions in vehicle miles traveled by shifting short trips from cars to electric bicycles. Program design will draw on lessons from peer jurisdictions and emphasize real-world usage and emissions impacts.

Coordination with the City’s Department of Transportation will ensure incentives align with bike infrastructure, safety efforts, and broader mobility goals.

SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 25
09 Future Programs
Aggregated Electrification Project
SJCE will act as a project manager, convening contractors, program implementers, CBOs, and multiple funding streams to deliver a streamlined neighborhood offering that maximizes available resources, including reinvesting dollars that would otherwise be used to maintain gas infrastructure. Two-thirds to 100% of homes in neighborhoods would need to agree to participate for projects to be pursued.

Solar + Storage + Electrification Offering
SJCE will combine complementary electrification technologies and model bill impacts. The goal will be to have 100% of project costs covered by rebates and zero-interest loans repaid on the electricity bill, and that the monthly loan payments will be lower than the monthly bill savings produced as a result of the upgrades. Combining solar and storage with electrification upgrades will ensure customers see net bill savings over the lifetime of the equipment.

Building Management System/Commercial
Smart Device Pilot
Commercial customers offer significant demand reduction potential for SJCE’s Peak Rewards virtual power plant,
but outdated building controls and limited staffing are key barriers. SJCE will provide incentives for automated building control upgrades—enabling remote, reliable load reductions with minimal customer effort. Smaller commercial sites may participate through smart thermostat upgrades.

SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 26
09 Future Programs
Program
Area
Program
Name
Timeframe
for launch
Resources
Needed
Description
T, A Fast Charging
Hubs Phase 1
2026-28
*** Inst
all DC Fast Chargers at City-owned
properties in charging deserts.

T, A Fast Charging
Hubs Supportive
Programs
2026-28 * Initiatives to support load shaping and
provide discounts for low-income customers
and subscriptions for fleets
T, A Low-Interest
EV Financing
2026-28 * Create partnerships with financial institutions to offer low-interest EV financing to our
customers
T, A E-Bike Incentive
Program
2026-28 *** Increase e-bike adoption and reduce vehicle miles traveled by providing incentives for
e-bikes
T, A Fast Charging
Hubs Phase 2-3
2029-31 *** Install DC Fast Chargers at more City-owned properties and at private properties across
the city
T, A Virtual
Submetering
2029-31 * Increase the use of virtual submetering at
multifamily properties to enable residents to
charge using their residential electricity rate
T Fleet
Electrification
Technical
Assistance
2029-31 * Provide technical support to help local
businesses electrify their fleets
B, A Housing Repair
Efficiency &
Electrification
2026-28 ** Fund additional energy efficiency and
electrification offerings to existing City of
San José Housing program
B, A Direct to
Renter Pilot
2026-28 * Pilot offering free or low-cost portable heat pumps to renters. Potential to scale and add
measures after pilot concludes
B Multifamily
Electrification
Incentives Pilot
2026-28 ** Fund technical assistance and incentives
to motivate electrification installations at
affordable housing and small complexes
Key
T = Transportation
B
= Buildings
D = Distributed Energy Resources
A = Affordability
Resou
rces needed
* = low
** = medium
*** = high
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 27
09 Future Programs
Program
Area
Program
Name
Timeframe
for launch
Resources
Needed
Description
B Aggregated
Electrification
Project
2029-31 *** High-touch technical and financial support for neighborhood groups of at least 25 homes to
fully electrify their homes
B Commercial
and Foodservice
Technical
Assistance
2026-28 * Offer technical assistance to build
electrification plans and scope out future
building improvements
B Commercial
and Foodservice
Incentives
2029-31 *** Based on technical assistance findings,
develop incentives for electrification projects.

Potentially leverage CPUC energy efficiency
funding.

B, D, A CBO-supported
Home Energy
Audits
2029-31 * Support training for community-based
organizations and volunteer staff to provide
energy education, perform home energy
audits, and evaluate demand response
potential.

B, D, A Solar + Storage
+ Electrification
Offering
2029-31 *** Combine solar+storage installation with
electrification appliance upgrades. Finance
project through incentives and zero-interest
loans.

D, A EcoHome
Battery
Evolution
Current +
2026-28
evolution
** Continue accelerating the adoption of flexible
home batteries by adapting the program
structure to allow participation from leased
batteries (third party-owned) and ensure
flexibility is captured in Peak Rewards, SJCE’s
virtual power plant.

D, A Explore
Potential of
Battery-only
Systems
2026-28 * Standalone residential batteries do not
currently guarantee a return on investment.

As battery prices come down and electricity
prices go up, there may be residents who
can benefit from a battery-only system
while providing grid benefits.

Key
T = Transportation
B = Buildings
D = Distributed Energy Resources
A
= Affordability
Resources needed
* = low
** = medium
*** = high
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 28
09 Future Programs
Program
Area
Program
Name
Timeframe
for launch
Resources
Needed
Description
D Midday Super
Saver Rate
2026-28 ** Build on the 2024 pilot findings to offer
a new rate plan with a significantly lower
cost of energy in the hours of 9 a.m.-2 p.m.,
when solar energy is abundant.

D DERs and Rate
Education
2026-28 * Launch education efforts on the benefits of
DERs, demand response, and time-of-use
rates for customers to help them save money
and enroll with confidence.

D Commercial
Distributed
Resource
Technical
Assistance
2026-28 * Offer technical assistance to help commercial customers evaluate the potential for solar and
storage at their site. For those with on-site
solar and storage, assist in enabling Peak
Rewards participation.

D, A Commercial
Solar and
Storage
Incentives
2026-28 **
May include flexible structures such as
power purchase agreements or targeted
incentives to reduce upfront costs and
accelerate adoption
D, A B
uilding
Management
System/
Commercial
Smart Device
Pilot
2029-31 * Offer incentives for commercial building
control upgrades to automate participation
in Peak Rewards, particularly those that have
a high potential for reductions.

Key
T = Transportation
B = Buildings
D = Distributed Energy Resources
A = Affordability
Resources needed
* = low
** = medium
*** = high
"With the dearth of national
leadership, local action
matters more than ever.

SJCE shows how cities
can lead — delivering
practical solutions that
cut emissions, protect
affordability, and improve
quality of life. SJCE
provides a hopeful
national model for our
clean energy future."
U.S. Representative
Sam Liccardo
Former San José Mayor
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 29
09 Future Programs
Program Concepts Customer Feedback
When we asked residential customers for feedback on select program concepts, they said they are personally most likely to participate in, in order of most to least popular:

1. Direct to renter pilot (renters only)

2. Housing repair efficiency and electrification (renters only)

3. Webinars and other online educational content
about electrification

4. Aggregated electrification project (homeowners only)

5. Home energy audits

6. Go Electric Advisor

7. E-bike incentive

8. Low-interest EV financing

9. EV Instant Rebates

10. In-person presentations or events about electrification Looking Ahead: Emerging Demand Flexibility
SJCE will continue to monitor emerging technologies and evolving regulatory requirements related to demand flexibility, including vehicle-to-grid (V2G), vehicle-to-home (V2H) and dynamic pricing.

As these technologies mature and policy frameworks evolve, SJCE will introduce pilots and programs, as appropriate, to support grid reliability, reduce peak emissions, and deliver customer value.

SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 29
PAGE 30
SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
10 Acknowledgments

SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 31
10 Acknowledgments
• 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
This Programs Roadmap reflects the valuable contributions of more than 80 stakeholders, including CBOs, thought leaders, business representatives, industry partners, advocacy groups, and public agency staff. We sincerely appreciate the time, expertise, and thoughtful feedback shared throughout this process.

We also extend our gratitude to the residents and customers who participated in surveys, interviews, and community discussions. Your input helps ensure that SJCE’s programs are responsive to community needs, grounded in real-world experience, and aligned with San José’s long-term climate and affordability objectives.

SJCE is grateful for the continued partnership of our community and remains committed to ongoing engagement as these programs move forward.

Special thanks are extended to:

SAN JOSE CLEAN ENERGY PROGRAMS ROADMAP 2026
PAGE 32
• Rising Sun Center for Opportunity
• Sacred Heart Community Services
• Samsung Semiconductors
• San Diego Community Power
• San José City College
• San José Climate Advisory Commission
• San José 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
• SPUR
• 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
10 Acknowledgments
Saraí Rojas
Community
Planning
Collaborative
Sofia Esteva
Jasmine Jain
Vy Nguyen
Marcos Santiago
Calleagh Turner
Alyssa Castañeda
Oshi Jauco
Julie Benabente
Hannah Greenberg
Leslie Park
Zach Struyk
Kate Ziemba
True North
Research, Inc.

Scott Green
Lori Mitchell
Consultant Support
Staff Contributors
Mallory Byers Josh Chanin

San Jose City CouncilMay 19, 2026

San Jose City Council
May 19, 2026