Bay Area Phasing Out Gas Water Heaters

TAYLOR LAMBERT January 21, 2026

Starting January 1, 2027, there’s a big change coming for Bay Area homeowners! Traditional gas-powered residential water heaters are officially getting phased out. That means no more selling or installing standard gas water heaters in most of the Bay Area.

Before you panic, if you already have a gas water heater and it’s working, you’re totally fine. There’s no rule that says you have to rip it out just because the calendar flips to 2027. You can keep using it as long as it's doing its job.

The catch comes when that water heater eventually dies. If it fails after 2027, you won’t be allowed to replace it with another gas model. At that point, you’ll be required to switch to a zero-emission option, most commonly an electric heat pump water heater.

Because of that, it may actually make sense to baby your current gas unit, or even replace it before 2027 if you want to stay with the gas model for as long as you can. This might be a good idea if you're running out of room on your electrical system, as many electric water heaters are installed, you're looking at a lot of electrical panel upgrades in the next few years!

And this isn’t just about water heaters. Gas furnaces are next. Under the same regulation, both residential and commercial gas furnaces will be phased out, too, just on a slightly longer timeline. That change kicks in January 2029.

Long story short: no immediate action is required, but this is one of those “good to know ahead of time” changes that could affect future repair and replacement costs. A little planning now can save a lot of scrambling later. Might be time to see how long your water heater has left, and also check your electrical panel to see when the day comes, your system can handle the new load you'll one day put on it.