Goleta launches $10,000 pilot to waive heat-pump permit fees and spur home electrification

The City of Goleta on Wednesday announced a pilot heat-pump permit fee waiver aimed at lowering one of the upfront costs for homeowners replacing gas appliances with electric heat pumps. Jason Scott Sheets, Civic Spark sustainability fellow with the city, said the program will waive building permit fees for qualifying residential projects that replace an existing gas-powered appliance with an electric heat-pump water heater or heat-pump HVAC system.

Goleta launched the pilot with an initial budget of $10,000, Sheets said, and permit applications may be submitted through the city’s website. "A permit application for projects that are installing electric heat pump water heaters and heat pump HVAC systems are eligible to waive the fees that they would normally pay for those permits," Sheets said during the webinar.

City staff explained which permits are covered: plumbing permits for heat-pump water heaters and both mechanical and electrical permits for heat-pump HVAC installations. Presenters also clarified fee components used by the city: a plan-check minimum fee of $82.50 and an issuance fee of $33.50, for a combined typical fee of $116. Sheets cautioned that the city’s fee schedule may change with an update planned for July 1, 2026.

Eligibility requires that the project install an electric heat pump at the scheduled time of replacement of an existing gas appliance on a residential property (single-family or multifamily). Applicants are asked to include specifications for both the new heat-pump system and the system being replaced so staff can verify that the work meets program parameters.

The waiver is explicitly intended to complement existing regional and county incentives, not replace them. Sheets directed residents to other funding sources, including Santa Barbara County Air Pollution Control District programs and regional offerings described later in the webinar. He added that the city’s permit waiver is "designed and intended to stack and complement the many services and incentives that you’re currently offering." The city will share slides and links after the webinar and will make the recording available on its YouTube channel.

Next steps: applications can be submitted on the city website and staff will administer the pilot from the $10,000 allocation; attendees were told to expect follow-up emails with links and guidance. Questions about technical eligibility were handled in the webinar’s Q&A and panelists offered to follow up individually for complex projects.