Berkeley BESO Compliance Guide
⚠️ Important Notice for Berkeley Property Owners
Effective January 1, 2026: Home Energy Score required before listing single-family homes and duplexes.
Sellers must obtain a Home Energy Score before listing and either complete energy upgrades, qualify for an exemption, or defer upgrades to the buyer with a $5,000 deposit. Failure to obtain Home Energy Score results in $500 non-compliance fee.
Note: 3-4 unit buildings must comply starting January 1, 2028.
What is BESO?
The Building Emissions Saving Ordinance (BESO) requires sellers of small residential properties in Berkeley to complete a Home Energy Score assessment and either make energy upgrades or defer responsibility to the buyer. Established to lower greenhouse gas emissions and increase resilience in existing buildings, BESO uses a flexible credit-based system that allows property owners to choose from upgrades like heat pumps, solar panels, and other improvements.
Key Facts About BESO
- Effective January 1, 2026: Required for single-family homes and duplexes (3-4 unit buildings starting January 2028)
- Home Energy Score required: Must be completed before listing and valid for 5 years
- Flexible credit system: Earn 6 credits through various upgrade options
- Deferral option available: Can defer upgrades to buyer with $5,000 deposit ($2,500 each party)
- Exemptions exist: All-electric homes, income-qualified first-time buyers, and homes with heat pumps may be exempt
- Does not apply to: Condominiums or Accessory Dwelling Units (ADUs)
Why BESO Matters for Buyers and Sellers
For Sellers
- Home Energy Score must be obtained before listing
- Three options: complete upgrades, qualify for exemption, or defer to buyer
- Can earn credits for upgrades made in past 5 years
- Deferral option splits $5,000 deposit with buyer
- Early compliance can be a strong marketing advantage
- $150 filing fee for Certificate of Compliance
For Buyers
- May receive property with deferred upgrades
- Get $5,000 deposit refunded after completing upgrades
- Two years to complete upgrades (with option for 1-year extension)
- Choose from flexible menu of upgrade options
- May qualify for exemption as first-time homebuyer
- Can benefit from utility rebates and incentives
BESO Requirements by Property Type
Which Properties Are Covered?
BESO applies to:
- Single-Family Homes and Duplexes (1-2 units): Effective January 1, 2026
- Triplexes and Fourplexes (3-4 units): Effective January 1, 2028
BESO does NOT apply to:
- Condominiums
- Accessory Dwelling Units (ADUs)
The Credit-Based System: Earn 6 Credits to Comply
To meet BESO’s Resilience Standard, you must earn at least 6 credits by completing upgrades from the approved list. Credits can be earned for work completed in the 5 years prior to sale.
High-Value Upgrades (6 Credits Each)
- Heat Pump Water Heater – Electric heat pump replaces gas water heater
- Heat Pump HVAC – Electric heat pump for space heating/cooling
- Knob & Tube Replacement – With pre-wiring for 240v receptacles
- Smart Service Panel – Automated load management system
- Electrical Service Panel Upgrade – Increase capacity (e.g., 100A to 200A)
Medium-Value Upgrades (2-4 Credits)
- Solar PV – Solar panels (3 credits)
- Battery Energy Storage – Home battery system (3 credits)
- Window Replacements – Energy-efficient windows (2-4 credits)
- Wall Insulation – Exterior or interior wall insulation (2-4 credits)
- EV Charger – Level 2 electric vehicle charging station (2 credits)
- Electric/Induction Range – Replace gas stove (2 credits)
- High Home Energy Score – Score of 9 or 10 (2 credits)
- Attic Insulation – Improve attic insulation (2 credits)
- HVAC Duct Improvements – Sealing, insulation, or replacement (2 credits)
- Whole-House Fan – Ventilation cooling system (2 credits)
Lower-Value Upgrades (1-2 Credits)
- Electric Clothes Dryer – Replace gas dryer (1-2 credits)
- Pre-wiring & 240v Receptacles – Prepare for future electrification (1-2 credits)
- Floor/Crawlspace Insulation – Under-floor insulation (1 credit)
- Greywater System – Water recycling system (1 credit)
- Air Sealing – Reduce air leaks (1 credit)
Important: All work must be permitted and meet code requirements. Click upgrade links in the compliance section for detailed installation criteria.
Estimated Costs
Typical cost ranges for common upgrades:
- Heat Pump Water Heater: $3,000-$6,000 (earns 6 credits – full compliance!)
- Heat Pump HVAC: $10,000-$20,000 (earns 6 credits – full compliance!)
- Solar PV + Battery: $15,000-$30,000 (earns 6 credits combined)
- EV Charger + Induction Range + Windows: $8,000-$15,000 (earns 6+ credits)
- Deferral Option: $2,500 seller non-refundable deposit (buyer completes later)
Note: Costs vary widely based on existing conditions, rebates available, and installer rates. Many upgrades qualify for local or state rebates that can significantly reduce net costs.
BESO Compliance Timeline
Understanding the BESO timeline is critical for smooth real estate transactions. The new BESO system offers more flexibility than previous requirements, but planning ahead is still essential.
Recommended Timeline Before Listing
- 4-6 weeks before listing: Schedule Home Energy Score assessment with registered assessor
- 3-4 weeks before listing: Receive Home Energy Score report (valid for 5 years)
- Decision point: Choose your compliance path:
- Complete upgrades before listing (recommended for marketing advantage)
- Check if you qualify for heat pump or all-electric exemption
- Plan to defer upgrades to buyer with deposit
- If completing upgrades: Allow 2-8 weeks depending on upgrade type and contractor availability
- Ready to list: Include Home Energy Score in MLS listing and disclosure documents
Important Timeline Considerations
- Home Energy Score is required before listing: $500 non-compliance fee if not obtained
- Assessor availability: Registered BESO assessors may be booked 1-3 weeks out during busy seasons
- Major upgrades (heat pumps): Can take 4-8 weeks from ordering to installation
- Permitting delays: Most upgrades require building permits; plan for inspection scheduling
- Contractor availability: Licensed contractors may have 2-4 week lead times
- Rebate processing: Utility rebates can take 4-8 weeks after completion
Timeline During Active Transaction
If you choose to defer upgrades to the buyer:
- Coordinate with buyer and title company before close of escrow
- Submit BESO Upgrade Deposit Form with $5,000 deposit ($2,500 from each party)
- Buyer has 2 years from date of sale to complete upgrades (plus optional 1-year extension)
- Buyer receives $5,000 refund after submitting Certificate of Compliance
If completing upgrades before close:
- Submit documentation via BESO Portal with $150 filing fee
- City reviews and issues Certificate of Compliance (typically 1-2 weeks)
- Certificate transfers with property and is valid for life of ownership
Typical Upgrade Timelines
Fast upgrades (1-3 weeks):
- EV charger installation
- Electric/induction range
- Electric clothes dryer
- Air sealing
Medium upgrades (3-6 weeks):
- Heat pump water heater
- Attic insulation
- Window replacements
- HVAC duct improvements
Major upgrades (6-12+ weeks):
- Heat pump HVAC system
- Solar PV installation
- Electrical panel upgrade
- Battery energy storage
Step-by-Step BESO Compliance Process
Step 1: Get a Home Energy Score (Required Before Listing)
Before listing your property for sale, you must obtain a Home Energy Score assessment:
- Hire a qualified assessor from the City’s list of Registered BESO Energy Assessors
- Each unit in multi-unit buildings requires a separate score
- Assessment results in a score from 1-10 (higher is more efficient)
- Home Energy Score is valid for 5 years
- Must include score in MLS listing Property Notes section
- Must include assessment report in disclosure documents
Cost: Typically $300-$600 per unit
Failure to comply: $500 non-compliance fee
Pro tip: You may already have a valid Home Energy Score if one was completed within the past 5 years.
Step 2: Choose Your Compliance Option
Once you have your Home Energy Score, you must choose one of three compliance paths:
Option A: Complete Upgrades to Meet Resilience Standard
- Install upgrades to earn at least 6 credits from the approved list
- Can get credit for upgrades made in the 5 years before selling
- All work must be permitted and meet current code
- Submit documentation via BESO Portal with $150 filing fee
- Receive BESO Certificate of Compliance from City
- Certificate transfers with property at sale
Best for: Sellers who want to complete upgrades and market property as “BESO compliant”
Option B: Qualify for Heat Pump Exemption
- If ALL units have electric heat pump water heater OR heat pump HVAC, property may be exempt
- No additional upgrades required
- Submit Home Energy Score via BESO Portal with $150 filing fee
- Receive BESO Certificate of Compliance
Best for: Properties that have already electrified major systems
Option C: Defer Upgrades to the Buyer
- Coordinate with buyer and title company before close
- Submit BESO Upgrade Deposit Form
- Deposit $5,000 to the City ($2,500 from seller, $2,500 from buyer)
- Buyer has 2 years to complete upgrades (plus optional 1-year extension)
- City refunds $5,000 to buyer after upgrades completed
Best for: Sellers who don’t want to complete upgrades before sale or are on tight timelines
Step 3: Submit Documentation and Receive Certificate
For sellers completing upgrades (Option A or B):
- Log in to the BESO Portal
- Upload required documentation:
- Home Energy Score report
- Building permits and final inspection approvals
- Contractor invoices and specifications
- Photos of completed work (if applicable)
- Pay $150 filing fee
- City reviews submission (typically 1-2 weeks)
- Receive BESO Certificate of Compliance via email
- Provide certificate to escrow/title company at closing
For buyers completing deferred upgrades:
- Complete upgrades within 2 years of purchase
- Submit documentation via BESO Portal with $150 filing fee
- Receive Certificate of Compliance
- Submit BESO Upgrade Deposit Refund Form
- Receive $5,000 refund check from City
Note: Paper applications can be submitted by mail if needed, but the online portal is faster and recommended.
Additional Exemptions & Exceptions
- All-Electric Homes: Properties with no gas service and capped gas lines are exempt (verification required)
- Income-Qualified First-Time Buyers: Buyers enrolled in CalPLUS or MyHome programs are exempt
- Early Refund Exception: Buyers can receive deposit refund early with signed contractor agreement and permits
Contact the BESO Helpdesk at BESO@berkeleyca.gov or (510) 981-7465 for exemption applications.
BESO Compliance Calculator
Explore different upgrade combinations to reach 6 credits and estimate your total costs. Compare options like heat pump water heaters, solar panels, EV chargers, and more. My calculator includes typical costs and available rebates.
Calculator provides estimates only. Actual costs vary by property, contractor rates, and available incentives. All work must be permitted and meet code requirements.
Essential BESO Resources
📋 BESO Forms & Applications
🔧 Upgrade Information Sheets
💰 Rebates & Incentives
📞 Get Help
- BESO Helpdesk: BESO@berkeleyca.gov
- Phone: (510) 981-7465
- Building & Safety: (510) 981-5300
Get BESO Compliance Support
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