Buildings are one of the largest sources of carbon emissions in the United States, with residential and commercial properties accounting for about 29% of the country’s greenhouse gas (GHG) emissions. Electrification, or the process of replacing fossil fuels with clean energy generated by renewable, zero-carbon sources like wind and solar, is often cited as the best path to reducing building emissions, but it’s not without its challenges.
In this article, we’ll explore the benefits of electrification and some of the roadblocks you may face on your electrification journey, and how to overcome those obstacles.
Benefits of building electrification
Reduced emissions. Gas-powered heaters, boilers and appliances are among the biggest culprits contributing to a building's GHG emissions. The International Energy Agency says that electrification could reduce building emissions by 45%.
Improved energy efficiency. Electric appliances, such as heat pumps, water heaters and induction cooktops, typically use energy more efficiently than their gas-powered counterparts.
Improved health outcomes. Gas appliances emit a variety of indoor air pollutants that can lead to asthma and other respiratory conditions. Electrification eliminates those emissions, creating healthier work and home environments.
Increased safety. Natural gas can be explosive or flammable, depending on the situation. By eliminating its use, you can eliminate both of those hazards, as well as potential gas leaks.
The cost of building electrification
The cost of electrification is top of mind for most building owners, and certainly investing in new appliances, electrical panels, additional wiring and other infrastructure improvements won’t be cheap. Fortunately, there are several avenues available to help make the cost of electrification projects more manageable.
- Commercial Property Assessed Clean Energy (C-PACE) is a financial tool that businesses can use to pay for the upfront costs associated with electrification, energy efficiency, renewable energy and energy storage projects.
- Green Banks are mission-driven institutions that help finance clean energy projects through financial mechanisms such as low-cost private loans.
- Some electrification upgrades may be eligible for the 179D energy efficient commercial building tax deduction. State and local incentives may also be available in your area.
You can also take a phased approach to electrification. For example, rather than replacing everything at once, purchase energy-efficient electric appliances as your gas-powered models reach the end of their lifespans.
Increased demand on the grid
One of the biggest challenges with widespread electrification is that our aging grid may struggle to keep pace with the increased demand for electricity. While many grid modernization and expansion projects are underway, it may take some time before they come online. However, there’s no reason to delay your own electrification plans, especially if you bundle them with renewable energy projects like on-site solar panels or a microgrid.
Microgrids require additional upfront investment, but on-site renewable energy offers several benefits to building owners. Depending on the size of the array you install, solar panels can generate some, or all, of the additional power required to fully electrify your building. Generating more of your own electricity, along with steps to improve your building's energy efficiency, will reduce the amount of energy you'll need from the grid.
Adding a microgrid maximizes the potential of your on-site renewable energy. A microgrid can control which energy source powers your building at any given time — solar panels, energy storage batteries, the grid or a combination of all three — allowing your building to reduce the amount of grid energy it uses during peak hours. It also provides resilience in case of a grid outage.