5 Title 24 Changes Sacramento Business Owners Must Know in 2026

California’s 2025 Building Energy Efficiency Standards went into effect on January 1, 2026 — and if you own or manage commercial property in Sacramento, these Title 24 changes directly affect your bottom line. The California Energy Commission projects this code cycle will save the state $4.8 billion in energy costs over 30 years while cutting greenhouse gas emissions by roughly 4 million metric tons. But those statewide savings only materialize if business owners understand what’s required and act accordingly. From mandatory EV charging infrastructure to battery storage readiness, the 2025 Title 24 code pushes Sacramento commercial buildings firmly toward electrification. Here at TNT Electric, we’ve already helped dozens of Sacramento-area businesses prepare for these updates — and we’ve broken down the five most impactful changes you need to know right now.

Table of Contents

1. EV Charging Infrastructure Requirements for Commercial Buildings
2. Enhanced Lighting Control Mandates
3. Battery Storage Readiness Requirements for New Construction
4. Heat Pump Electrification Requirements Replacing Gas Systems
5. Expanded Electrical Capacity Requirements for All-Electric Buildings

1. EV Charging Infrastructure Requirements for Commercial Buildings

The 2025 CALGreen Code (Title 24, Part 11) dramatically expands EV charging requirements for nonresidential buildings — and Sacramento business owners submitting permit applications on or after January 1, 2026 must comply. The updated Table 5.106.5.3.1 now separates requirements into two categories: “Office and Retail” and “Other Than Office and Retail” — with office and retail properties facing the steepest mandates.

Here’s what the numbers look like in practice:

• 10–25 parking spaces: 4 EV capable spaces required, with 3 installed EV charging stations (EVCS) for office/retail or 2 EVCS for other commercial types
• 76–100 parking spaces: 17 EV capable spaces, with 13 installed EVCS for office/retail or 8 for other buildings
• 201+ parking spaces: 20% of all spaces must be EV capable, with 75% of those equipped with installed chargers for office/retail — that’s 15% of your total lot

To put that in perspective, a Sacramento retail center with 200 parking spaces that needed just 9 chargers under the 2022 code now needs 26 installed EVCS. That’s nearly triple.

The code does allow automatic load management systems (ALMS) to reduce infrastructure costs, but each connected space must still deliver at least 3.3 kW simultaneously. For Sacramento businesses served by SMUD, the good news is commercial electric rates remain roughly 50% lower than PG&E territory — making EV charging operations more affordable here than in most of California.

Cost range: Depending on your existing electrical infrastructure, expect to invest $3,000–$8,000 per charging station installed, including conduit, wiring, panel upgrades, and the EVCS hardware itself. Properties requiring transformer upgrades or trenching across parking lots will land on the higher end.

Pro tip: Don’t wait until your permit application is filed to assess your panel capacity. If your building’s electrical service can’t support the new EV load, a service upgrade from SMUD can take 8–12 weeks to schedule and complete. Our team regularly handles commercial electrical code compliance projects that bundle EV infrastructure with panel upgrades for maximum efficiency.

2. Enhanced Lighting Control Mandates: Daylight Harvesting, Occupancy Sensors, and Lower Power Limits

The 2025 Title 24 Energy Code (Part 6) brings some of the most significant lighting control changes in a decade. For Sacramento commercial buildings in CEC Climate Zone 12, these updates affect everything from your warehouse high-bays to your office ceiling grids.

Lower Lighting Power Density (LPD) Limits

Power allowances dropped by approximately 5% across most commercial space types under the updated Area Category Method (§140.6):

• Office spaces:75 W/ft² → 0.65 W/ft²
• Retail sales areas:0 W/ft² → 0.9 W/ft²
• Warehouses: Further reductions that push toward high-efficacy LED-only solutions

Additionally, the Tailored Method of lighting compliance has been eliminated entirely from the 2025 code. If your energy consultant previously used this pathway, you’ll need to shift to the Complete Building Method or Area Category Method.

Expanded Daylight Harvesting

Daylight harvesting requirements under §130.1(d) have tightened considerably. The trigger threshold dropped from 120 watts to just 75 watts — meaning far more commercial zones now require automatic daylight-responsive controls. Key requirements include:

• Primary and secondary daylight zones must be defined for spaces larger than 250 sq ft
• Controlled lighting segments are now restricted to 8 feet or less
• When natural light exceeds 150% of the design illumination standard, lighting power must drop by at least 90% (100% in parking garages)

For Sacramento buildings, this matters more than you’d think. Climate Zone 12 averages over 260 sunny days per year, which means daylight harvesting systems will actively reduce your energy consumption for the majority of the year — especially in buildings with skylights or extensive glazing along Sunrise Boulevard, Highway 50 corridor offices, or downtown storefronts.

Smarter Occupancy Controls

Occupancy sensors must now dim or shut off lighting within 20 minutes of vacancy. In offices larger than 250 sq ft, individual lighting zones cannot exceed 600 sq ft, and adjacent unoccupied zones must operate at no more than 20% power. The code also mandates continuous dimming (100% down to 10%) rather than stepped dimming — a change that affects both fixture and control system selection.

Cost range: A complete lighting controls retrofit for a 5,000–10,000 sq ft commercial space typically runs $8,000–$25,000, depending on existing infrastructure and the complexity of daylight zone configurations.

Pro tip: Sacramento businesses on SMUD’s Commercial Time-of-Day rate (CI-TOD1) can amplify savings by pairing occupancy-based controls with peak-period dimming strategies. The lighting reduction compounds with SMUD’s lower off-peak rates to produce significant monthly savings. If your building hasn’t had a lighting audit since the 2022 code cycle, now is the time.

3. Battery Storage Readiness Requirements for New Construction

One of the biggest additions in the 2025 Title 24 code is the mandatory battery energy storage system (BESS) requirement for newly constructed nonresidential buildings. Under §140.10(b), any new commercial building that’s required to install solar PV must also install a battery storage system — a first for California’s nonresidential energy code.

Which Buildings Are Affected?

The BESS mandate applies to new buildings where at least 80% of total floor area falls under occupancy types listed in Table 140.10-B, including:

• Offices, financial institutions, and medical office buildings
• Retail and grocery stores
• Restaurants
• Schools and libraries
• Hotels and motels
• Warehouses
• Religious worship facilities (new for this code cycle)
• Sports, recreation, and event/exhibit spaces (also new)

If you’re planning new commercial construction anywhere in the Sacramento region — from a medical office in Roseville to a restaurant in Midtown — this requirement likely applies to your project.

How Battery Sizing Works

The required BESS capacity is calculated based on your solar PV system size using equations in §140.10(b). The key inputs are your building’s conditioned floor area (CFA) and the BESS capacity factor from Table 140.10-B, which varies by building type. The battery must also meet minimum performance standards under Reference Joint Appendix JA12:

• Round-trip efficiency: Greater than 80%
• Capacity retention: 70% of nameplate capacity after 4,000 cycles, covered by warranty — or 70% under a 10-year warranty
• CEC certification: The battery system must be on the California Energy Commission’s certified equipment list

Exceptions Worth Knowing

Not every project triggers the BESS requirement. Three key exceptions exist:

1. The PV system size is less than 15% of the capacity calculated by Equation 140.10-A
2. The calculated BESS capacity comes in under 10 kWh
3. Single-tenant buildings under 5,000 sq ft of conditioned floor area (for multi-tenant buildings, only tenant spaces over 5,000 sq ft trigger the requirement)

Cost range: Commercial BESS installations typically range from $800–$1,200 per kWh of usable capacity installed, including the battery modules, inverter/power conditioning, and balance-of-system components. A mid-sized office building might need a 30–60 kWh system, putting the installed cost at $24,000–$72,000 before incentives.

Pro tip: Sacramento businesses can significantly offset BESS costs through California’s Self-Generation Incentive Program (SGIP) and the federal Investment Tax Credit (ITC), which still offers a 30% credit for commercial energy storage through 2032. Pair this with SMUD’s favorable time-of-use rates, and battery storage can actually become a profit center — charging during cheap off-peak hours and discharging during expensive summer peaks.

4. Heat Pump Electrification Requirements Replacing Gas Systems

The 2025 Title 24 code takes California’s push toward building electrification to a new level for commercial properties. While the code technically doesn’t “ban” gas, it establishes energy performance budgets that heavily favor heat pump technology — making gas systems increasingly difficult to justify from a compliance standpoint.

New Construction: Heat Pumps as the Baseline

For new nonresidential buildings, the 2025 code expands on the single-zone heat pump baselines introduced in the 2022 cycle. The most impactful change affects offices and schools with multi-zone HVAC systems (buildings ≤150,000 sq ft or ≤4 stories). These buildings must now use one of the following system types per §140.4(a)3:

• Variable Refrigerant Flow (VRF) heat pump with a dedicated outdoor air system (DOAS) and refrigerant loop heat recovery
• 4-pipe fan coil units with an air-to-water heat pump (AWHP) and DOAS
• Variable Air Volume (VAV) system with AWHP and DOAS
• Dual-Fan Dual-Duct (DFDD) systems

For Sacramento’s hot, dry Climate Zone 12 summers — where cooling degree days far outnumber heating degree days — VRF and air-to-water heat pump systems deliver excellent performance. These systems shine during our 100°F+ stretches because modern heat pumps achieve cooling efficiencies that outperform traditional packaged rooftop units.

Alterations: End-of-Life Rooftop Replacements

Perhaps the most consequential change for existing Sacramento businesses: when rooftop HVAC units reach end-of-life in stores, schools, offices, and libraries, the 2025 code requires replacement with high-efficiency systems — including heat pumps where feasible (§141.0(b)). This applies to units under 65,000 Btuh and triggers compliance with prescriptive Table 141.0-E-1 or performance pathway requirements.

If your building in Arden-Arcade, Natomas, or the Power Inn corridor is running aging packaged gas/electric rooftop units, your next replacement will look very different from the last one.

Electric-Ready Commercial Kitchens

New mandatory requirements under §120.6(k) require electric-ready commercial kitchens in quick-service and institutional food service settings. This means:

• Branch circuit conductors rated at ≥50 amps
• Electrical service panel capacity of ≥800 connected amps
• Panel sized to accommodate an additional 208V or 240V 50-amp breaker

The exception? All-electric kitchens and healthcare facilities are exempt — they’re already ahead of the curve.

Cost range: Commercial heat pump HVAC systems for a typical Sacramento office or retail space run $15,000–$45,000 depending on system type, building size, and whether ductwork modifications are needed. VRF systems tend to cost more upfront but deliver superior zone control and efficiency.

Pro tip: SMUD offers commercial electrification incentives and rebates for businesses switching from gas to electric heat pump systems. When combined with the 179D Commercial Building Energy Efficiency Tax Deduction — which rewards buildings that exceed ASHRAE 90.1 baselines — the net cost of switching to heat pumps can be substantially reduced. Talk to a Title 24 electrician in Sacramento before your next HVAC replacement to ensure the electrical infrastructure can support the new load.

5. Expanded Electrical Capacity Requirements for All-Electric Buildings

Here’s the change that ties everything together — and the one that Sacramento business owners most commonly underestimate. The 2025 Title 24 code’s combined requirements for EV charging, battery storage, heat pump HVAC, and electric-ready kitchens create a massive increase in electrical demand for commercial buildings. Your existing electrical service may not be enough.

The Cumulative Load Problem

Consider a typical new 15,000 sq ft Sacramento office building. Under the 2025 code, you’re now required to support:

• EV charging stations across a significant percentage of your parking lot (potentially 50–100+ amps per station)
• Solar PV and battery storage systems with dedicated circuits and disconnect switches
• Heat pump HVAC drawing more electrical current than the gas/electric systems they replace
• Electric-ready kitchen infrastructure with 50-amp branch circuits and 800+ amp panel capacity

Added together, these requirements can push a building’s electrical service from a 400-amp or 600-amp service to 800 amps, 1,200 amps, or more. For larger commercial properties, you may need a new switchgear installation or utility transformer upgrade — and that’s where lead times and costs can escalate quickly.

SMUD Coordination Is Critical

In SMUD’s service territory, new commercial service installations and major upgrades require coordination with SMUD’s Commercial & Industrial team. Current lead times for transformer installations and service upgrades in the Sacramento area are running 8–16 weeks depending on equipment availability and transformer capacity in your neighborhood. Properties in rapidly developing areas like Natomas, Rancho Cordova, and the Highway 50 corridor may face longer waits due to high demand.

SMUD’s commercial rates — which run roughly 50% lower than PG&E — soften the blow of increased electrical consumption. But you need to plan your service upgrade early in the design phase, not as an afterthought when your contractor realizes the existing 400-amp panel can’t handle the load.

Panel and Distribution Upgrades

The 2025 code’s electric-readiness provisions mean that even if you’re not going fully electric today, your panel must be sized for future electrification. This includes:

• Spare breaker spaces labeled for future EV, heat pump, and kitchen circuits
• Conduit and raceway pathways roughed in during initial construction
• Load calculations that account for simultaneous EV charging, HVAC, and building operations

For existing buildings undergoing major alterations, expect your electrical engineer to specify significantly larger panels and distribution equipment than what’s currently installed.

Cost range: Electrical service upgrades for commercial properties in Sacramento typically range from $15,000–$75,000+, depending on the scope. A straightforward panel upgrade might fall on the low end, while a full service entrance replacement with new switchgear, underground conduit, and SMUD transformer coordination can reach six figures for larger properties.

Pro tip: The smartest approach is to treat your electrical infrastructure as the first design consideration — not the last. We’ve seen Sacramento projects hit costly delays because the EV, solar, HVAC, and kitchen electrical requirements were designed in silos, only to discover at permitting that the building’s service couldn’t handle the combined load. At TNT Electric, we perform comprehensive load analyses early in the design phase to right-size your electrical service for all 2025 Title 24 requirements simultaneously. This prevents change orders, avoids SMUD resubmittals, and keeps your project on schedule.

Frequently Asked Questions

Does the 2025 Title 24 code apply to existing Sacramento commercial buildings?

The 2025 Energy Code (effective January 1, 2026) applies to all new construction and major alterations where permit applications are submitted on or after that date. Existing buildings that aren’t undergoing significant renovations don’t need to retroactively comply. However, if you’re replacing end-of-life HVAC equipment, remodeling more than a certain percentage of your space, or adding parking, specific Title 24 requirements will be triggered. Even targeted equipment replacements — like swapping out a rooftop unit — now require high-efficiency, heat-pump-capable systems in many commercial building types.

How much will Title 24 compliance cost Sacramento business owners?

Costs vary widely depending on your building type, size, and existing infrastructure. A small office under 5,000 sq ft may qualify for several BESS exceptions and face relatively modest costs for lighting and EV upgrades — potentially $15,000–$30,000 total. Mid-sized commercial properties (10,000–50,000 sq ft) with extensive parking and new construction requirements could see compliance-related electrical costs of $75,000–$200,000+ when factoring in EV stations, battery storage, heat pump systems, and service upgrades. Federal tax credits (ITC, 179D), SMUD rebates, and SGIP incentives can offset 20–40% of these costs for qualifying projects.

Do I need a specialized electrician for Title 24 commercial compliance in Sacramento?

Yes — and this isn’t the time to cut corners. Title 24 compliance requires Acceptance Test Technician Certification (ATTCP) for lighting controls verification, proper CEC-certified equipment selection for battery storage, and detailed load calculations that account for the new code’s cumulative electrical demands. Working with a licensed contractor experienced in California’s energy code ensures your project passes inspection the first time and qualifies for all available incentives. TNT Electric’s team holds the certifications and local experience to handle every aspect of Title 24 commercial compliance in the Sacramento region.

Ready to Get Started?

The 2025 Title 24 changes represent the most significant shift in California’s commercial building energy code in over a decade. From mandatory EV charging stations and battery storage to heat pump electrification and expanded electrical capacity, Sacramento business owners face real compliance obligations — but also real opportunities to reduce operating costs, qualify for substantial incentives, and future-proof their properties. The key is starting early: assess your electrical infrastructure, understand which requirements apply to your specific building type, and work with a licensed team that knows Sacramento’s unique utility landscape and permitting process.

Call TNT Electric today at (916) 824-1960 or schedule your free estimate to discuss your Title 24 compliance assessment — know where you stand before your next permit application.

TNT Electric Co. is Sacramento’s trusted licensed electrical contractor serving Sacramento, Roseville, Citrus Heights, Fair Oaks, Carmichael, and surrounding areas.