🏡 Berkeley Homeowners Guide: 2026 BESO Requirements Explained

Starting January 1, 2026, Berkeley’s Building Energy Saving Ordinance (BESO) is getting an update. If you’re planning to sell or buy a home, these new requirements will affect your transaction. Here’s what every Berkeley homeowner needs to know to stay compliant—and how to prepare.

🔎 What Is BESO?

The Berkeley Building Energy Saving Ordinance (BESO) is a local regulation that promotes energy efficiency and electrification in residential properties. It requires homeowners to complete a Home Energy Score (HES) assessment and, beginning in 2026, implement certain energy upgrades when selling their property.

📅 Key Timeline for BESO Compliance

⚙️ What’s Changing in 2026

1. Mandatory Energy Assessments

Sellers must now complete a Home Energy Score (HES) before listing their property. The option to defer the assessment to the buyer is no longer available.

2. Resilience Upgrades Required

Homes will need to earn at least 6 “Resilience Credits” from a list of approved energy improvements, such as:

• Installing a Heat Pump Water Heater (6 credits)

• Upgrading to a Heat Pump HVAC system (6 credits)

• Completing other qualified electrification or weatherization upgrades

3. Two Paths to Compliance

You can meet BESO’s upgrade requirement in one of two ways:

Option 1 – Pre-Sale Compliance:
Complete the upgrades before closing and obtain a Certificate of Compliance ($150 fee).

Option 2 – Defer to Buyer:
The buyer agrees to complete the upgrades within two years (with an optional one-year extension).

💰 Deposits & Fees Overview

When upgrades are deferred, the City of Berkeley holds the $5,000 Resilience Upgrade Deposit until the buyer completes the required upgrades.

🏠 MLS Listing Requirement

As of January 1, 2026, the Home Energy Score must be included in the property’s MLS listing.
Agents should upload the HES report directly into the listing notes to remain compliant.

🚫 Exemptions

Some properties and transactions are exempt from the updated BESO requirements, including:

• All-electric homes with a capped gas line (verified by permit)

• Refinances, inheritance, or partial transfers

• ADUs and condominiums

• Income-qualified First-Time Homebuyers enrolled in programs like CalPLUS or MyHome

💬 How to Talk About BESO with Clients

For Sellers

• Get the HES early. Schedule your energy assessment before you list your home.

• Add it to your MLS listing. The HES report must appear in the property notes section.

• Decide how to comply.

  • Option 1: Complete upgrades now for a smooth sale.

  • Option 2: Split the $5,000 deposit with the buyer and let them handle the upgrades later.

• Check for exemptions. Homes with existing heat pumps or all-electric systems may already meet the new standard.

For Buyers

• Review the HES carefully. It tells you how energy-efficient the home is today and where upgrades could add value.

• If upgrades are deferred:

  • You’ll have 2–3 years to complete the 6-credit improvements.

  • You’ll contribute $2,500 to the City’s refundable deposit.

• Leverage incentives. Rebates for heat pumps and other energy upgrades are available at switchison.org.

• Ask about exemptions. Income-qualified buyers may not need to complete upgrades.

🌿 Why These Changes Matter

The City of Berkeley’s BESO updates are designed to make homes more energy-efficient, climate-resilient, and future-ready.
For sellers, compliance starts before listing. For buyers, it’s an opportunity to invest in upgrades that improve comfort, reduce utility bills, and increase property value.

💡 Need Guidance on BESO?

If you’re planning to buy or sell a home in Berkeley, our team can help you navigate the new BESO requirements with ease—from finding a certified assessor to connecting you with rebate programs and qualified contractors.

📞 Contact William Freeman, Compass Real Estate
Your Berkeley real estate resource for sustainable home transitions.
👉 415.298.8031

[email protected]