California’s 2025 Energy Code Takes Effect, Targeting Building Efficiency

California’s latest Energy Code update took effect on Jan. 1, 2026, to boost energy efficiency in new single-family homes, multifamily housing, and commercial buildings. 

The code will also impact additions and alterations to existing buildings, helping to save consumers money while reducing greenhouse gas (GHG) emissions. 

As part of California’s Title 24 Building Standards Code, the update will drive adoption of energy-efficient heat pumps for space and water heating while implementing strategies to shift energy use away from peak demand times. 

It is an integral part of the state’s ongoing effort to decarbonize its buildings, which are responsible for 25% of the state’s total GHG emissions. 

“Energy efficiency is the quiet workhorse of the clean energy transition. Efficiency reduces Californians’ bills, improves their health and comfort, and reduces strain on the electricity grid,” said CEC Commissioner Andrew McAllister, in a statement. “When we build and upgrade homes to use less energy, California families save money, and communities get cleaner air and a more reliable electricity system.”   

The Energy Code dictates the energy-saving requirements of buildings, with updates occurring every three years to incorporate technology innovations.

The new Energy Code will save approximately $4.8 billion in energy costs over a 30-year period while reducing GHG emissions by about 4 million metric tons—the equivalent of removing over half a million homes’ annual emissions. 

CEC Building Standards Branch Manager Gypsy Achong added, “We are gratified that builders in California will be designing to the 2025 California Energy Code. Compliance with this update is the most affordable way to build a resilient and comfortable building for the future.” 

Read more here.