What changes are coming to Berkeley’s BESO program, and how will they affect home sellers?

Coming soon to a real estate sale near you: changes to Berkeley’s Building Emissions Saving Ordinance (BESO) that will significantly increase the requirements when a single-family home or detached condo is sold. The purpose of the ordinance (from the code itself) is “to reduce energy use, water consumption, and greenhouse gas emissions in existing buildings.”

Currently, BESO requires a seller to complete an Energy Report identifying energy and water efficiency opportunities, which must be filed with the City. The total cost is typically under $500. Under current rules, sellers can defer the requirement to the buyer, who then has six months to complete and file the report.

Starting January 1, 2026, the BESO requirements will increase. Sellers must file an Energy Report before the property is marketed (this can no longer be deferred to the buyer), and a Certificate of Compliance will be required, showing that six “resilience credits” worth of upgrades have been completed.

Some upgrades meet the full six-credit requirement on their own, including installing a heat pump water heater or heat pump HVAC system, replacing knob-and-tube wiring, adding solar with battery storage, or upgrading the electrical panel.

Other upgrades—such as window replacement, duct sealing, EV charger installation, insulation, greywater systems, or switching to an induction cooktop—earn fewer credits, so multiple improvements may be needed. A heat pump water  heater is expected to be the most affordable one-step option, but even that can cost over $5,000.

Sellers can either complete the upgrades and obtain the Certificate themselves or transfer the responsibility to the buyer. If the buyer takes it on, the seller must pay a $2,500 fee, and the buyer must deposit $2,500 with the City. The buyer then has two years to complete the upgrades. If they do, both the seller-paid fee and the buyer’s deposit are refunded to the buyer.

More details and guidance are expected by fall 2025. If you’re thinking about selling in the next year, factor these requirements into your planning. Selling before January 1 avoids the new rules—and higher costs—entirely. If you’re planning to sell in 2026, it’s wise to start planning for BESO now. Rebates are available for many relevant upgrades (see the incentives finder at bayren.org/find-incentives), and federal tax credits are also available through the end of this year. If you want to discuss timing and strategy, I’d be happy to help!