It’s been a busy start of the year for Owen Grimsich’s heat pump-installation company in Berkeley. 

That’s in large part because the city’s energy efficiency upgrade rules for home sales went into effect Jan. 1. The updated Building Emissions Saving Ordinance (BESO) requires sellers of single family homes or duplexes to complete at least six credits worth of upgrades before final sale — or pay $2,500 to the city, which is then funneled to the buyer upon completion of the upgrades.

For many sellers, installing a heat pump is the easiest and most efficient way to earn all six credits in one fell swoop, while also significantly increasing the appeal of the property, notes Grimsich, CEO of 1-888-Heat-Pumps.

The City Council approved the new, first-of-its-kind efficiency requirements in April to help Berkeley meet its ambitious climate goal of an 80% reduction in greenhouse gas emissions, from 2000 levels, by 2050.  Under the previous rules, sellers were only required to complete a home energy assessment before listing a property for sale.

“Berkeley continues to innovate and lead the way for the rest of the country with climate-first policies like this,” said Grimsich, a Berkeley High grad, with a palpable sense of hometown pride.

The six-credit standard

Sellers can earn the required six credits to meet the city’s resilience standard by completing various upgrades from a list of about 20. Smaller upgrades, like adding floor insulation or replacing single-pane windows, can earn anywhere from one to four credits. 

But for many sellers, the most efficient route to compliance may be the installation of a heat pump HVAC or water-heater system, both of which fulfill the full six-credit requirement.  

“We’re seeing a lot of pre-listing panic,” Grimsich said. “Sellers are realizing that instead of cobbling together their resilience credits with a bunch of small repairs, they can swap out an aging gas furnace for a heat pump and be done with it.” 

And once they see the return on investment, “they’re sold,” he added. 

Grimsich founded the company three years ago and has since installed heat pumps for more than 500 homeowners throughout the East Bay. His 14-member crew of installers was recently profiled by NBC Bay Area for its role in jump-starting the “tool-belt generation” — referring to young workers who opt to go into the trades. 

Auston Bera, at left, and Tenzin Thaplay of 1-888-Heat-Pumps prepare to install a heat pump. Courtesy of 1-888-Heat-Pumps

Heat pumps add to home value

A 2020 study of homes across 23 U.S. states found that installing a heat pump HVAC system can add up to $17,000 to a home’s sale price. What makes them so attractive to buyers is their efficiency: Unlike traditional gas or electric furnaces, heat pumps transfer heat rather than generating it, which is usually a far more efficient process that can immediately cut home energy use by up to 50%.

Beyond the energy savings, heat pumps also offer a significant lifestyle benefit that helps properties stand out: air conditioning. Because heat pumps can operate in reverse, they provide high-efficiency cooling during the region’s increasingly frequent heatwaves — a luxury most older Berkeley homes lack.

“A heat pump isn’t just a compliance checkmark — it’s a major comfort upgrade,” Grimsich said. “In this market, a home with modern climate control is far more attractive than one with a 30-year-old gas furnace.”

A sound investment

He notes that the push for heat pumps isn’t just about local compliance. It comes as the Bay Area Air Quality Management District is preparing to phase out the sale of gas-powered water heaters, which produce smog-forming nitrogen-oxide pollution, by 2027. Anticipating a surge in demand, 1-888-Heat-Pumps recently expanded its installation services to include heat-pump water heaters.

“Berkeley is just the first domino,” Grimsich said. “By switching to a heat pump now, you’re not just hitting your six credits — you’re future-proofing your home against regional bans that are right around the corner.”

Grimsich says it’s gratifying to see municipal and regional policymakers affirm the value of this technology. 

“Heat pumps are the future,” he said. “We’re grateful to be able to serve the Berkeley community by helping people save money while being kind to the planet.”

The 1-888-Heat-Pumps team took a break from volunteer clean-up work at Berkeley’s Martin Luther King Jr. Civic Center Park to pose with Mayor Adena Ishii. Courtesy of 1-888-Heat-Pumps

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