Best choice for replacing HVAC until we can afford a heat pump

We are at the point in our home renovation where we need to cut out some of the scope. We have found some significant plumbing issues that we have to address, so we need to find the money somewhere. We were planning on replacing the defunct HVAC system with a ductless mini split system. But it is just too expensive at this point. We are insulating the walls and attic and replacing the windows and exterior doors. Our contractor recommended just putting in a few recessed electric heaters until we are ready to install the mini split system. Has anyone done this before, and can you share your experience? Are your PG&E bills astronomical in the winter? Is there another potential solution you would suggest? We could also do a gas wall furnace but running the gas lines and using a gas appliance seem like not the best direction from a sustainability point of view - but maybe I'm missing something. For weather context, the house is in west Berkeley.

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It is difficult to advise without knowing what your defunct hvac system is. But you may want to patch that up and keep it running. 
 

alternatively, you may want to consider using one or two ptac units. They are heat pumps adequate for about one room. They are easy to install because in addition to using no ducts, they use no pipes. They are a bit noisy, though. 
 

I've been in the same quandry. We insulated earlier this year and it made a big difference. I'm looking at electric under floor heat mats for bath and kitchen. There are also toekick heaters   —they get raves from some and total fails from others—basically mini wall heaters but could be a good stop gap for you.