Building Electrification: Your Questions Answered

You may be familiar with building electrification as a common buzz phrase, but it's more than that. Electrification will play a key role in powering a sustainable future. Here we answer some questions you may have about building electrification opportunities, benefits and challenges.

What is building electrification?

Building electrification refers to the process of transitioning buildings from relying on fossil fuel-based energy sources. It involves replacing natural gas-fueled systems and appliances for space heating, water heating, cooking, backup power and other important applications with electric-powered equipment.

What electrification technologies are available?

Important technologies in the transition to all-electric buildings include air-source and geothermal heat pump space conditioning systems, heat pump water heaters, electric induction cooking equipment and battery energy storage.

Heat pump systems move heat rather than create it, allowing them to provide highly efficient space heating, air conditioning and water heating. Electric cooking equipment is highly efficient, but induction technology adds further benefits with faster cooking times and more precise temperature control. Battery energy storage combined with renewable energy presents a reliable and cleaner backup power alternative to fossil-fueled generators.

What are the benefits of building electrification?

Making the switch to electric comes with a number of potential benefits for your building and its occupants:

• Energy savings. Electric appliances and systems are typically more energy-efficient compared to their fossil-fueled counterparts, resulting in lower energy consumption and operating costs.
• Improved indoor air quality. Electric systems produce no onsite emissions, unlike combustion-based fossil-fueled equipment. This contributes to a healthier and safer indoor environment.
• Reduced environmental footprint. Electrifying buildings can lead to a significant reduction in greenhouse gas emissions, particularly if the electricity comes from renewable sources.
• Safety. Electric systems do not use onsite fossil fuels that can leak and potentially combust and explode.
• Automation. Electric appliances are far more compatible with IoT, sensors, controls and other feedback loop systems.

What are the challenges to going all-electric?

Despite all the benefits, any transition like building electrification comes with challenges. Here are some issues you may face in making the switch:

• Cost. Switching from fossil-fueled systems to electric can come with significant upfront costs for equipment, infrastructure upgrades and system conversions. There may also be concerns about the increased use of electricity that need to be addressed.
• Technical issues. Some existing buildings may have outdated electrical systems that are not suitable for electrification. Upgrading or retrofitting these systems can be complex and require careful planning and coordination.
• Market availability. The availability of technologies needed for building electrification may vary depending on the market or region. There may also be a limited number of qualified professionals in some areas with the knowledge and experience to install such systems.

Overcoming these challenges takes careful planning. Consider taking a gradual approach to system upgrades and take advantage of any financial incentives that are available.

What financial incentives are available for electrification?

Some system upgrades — such as heat pumps and heat pump water heaters — may be eligible as part of energy efficiency improvements that qualify for 179D energy efficiency tax deductions for commercial buildings. The federal investment tax credit (ITC) provides a tax credit of up to 30% of installation costs for qualifying renewable energy and energy storage systems. State and local incentives may also be available in your area for electrification technologies.

For more information, see Building Electrification 101 from the Building Electrification Institute.