The shift toward building electrification is accelerating. Driven by ambitious state and utility-level goals to reduce emissions and improve grid management, homes across the country are benefiting from upgrades to appliances and quality of life. During the recent Peak Load Management Association’s (PLMA) 50th national conference, experts highlighted electrification as a cornerstone of future energy programs. As states like New York aim to electrify millions of buildings by 2030, the conversation revealed not only opportunities but also significant challenges for utilities and program implementers.
Key Trends and Challenges
- From Energy Efficiency to Electrification:
Nationwide, utilities have effectively tackled the "lowest hanging fruit" of energy efficiency—primarily through lighting replacement programs. With this avenue largely exhausted, many utilities are reallocating budgets toward electrification initiatives or, in some cases, canceling efficiency programs entirely. This shift signals a fundamental reordering of priorities as states and utilities recognize the deeper energy and carbon savings potential of electrification. - Navigating Barriers to Fuel Switching:
Even in states or regions where entities are restricted from explicitly promoting electrification, fuel switching, or decarbonization, there are alternative pathways to engage customers. Programs emphasizing indoor air quality improvements—a direct benefit of switching from fossil-fuel-based heating systems to electric solutions—provide a compelling entry point for these conversations. Programs should tout the benefits of electrification from a health and comfort improvement measure while aligning with overarching decarbonization goals. - Equity and Accessibility:
Electrification program funding represents one of the strongest means of driving equity in the energy transition. Specifically, electrification funding focused on low-to-moderate (LMI) households can provide access to improved indoor air quality, health and safety remediation, and reduced energy cost burdens which would be otherwise inaccessible particularly for LMI households. Challenges such as the high upfront cost of equipment, fragmented program offerings, and limited customer awareness require innovative approaches to ensure equitable participation.
Insights from the Building Electrification Panel
During the Building Electrification session at PLMA, panelists emphasized the importance of integrating multiple program streams, such as energy efficiency (EE), demand-side management (DSM), and electrification. This layered approach ensures holistic energy savings while streamlining the customer experience. Key insights included:
- Smart Technology Integration: Smart heat pumps and other electrification technologies require new and more comprehensive customer education and control mechanisms.
- Siloed Programs Limit Effectiveness: Historically, programs like DSM, clean heat, and weatherization have been implemented in silos, reducing their overall impact. Breaking down these silos to create unified, customer-friendly programs is critical to achieving long-term success.
- Scaling Electrification Efforts: New York’s goal to electrify 2 million buildings by 2030—up from 60,000 between 2020 and 2023—highlights the scale of the challenge. Panelists underscored the need for tools that can identify eligible buildings, target high-impact opportunities, and track progress efficiently.
Takeaways for the Industry
- Unified Program Design: Integrated programs that align various energy initiatives can streamline processes, improve efficiency, and enhance customer satisfaction. Utilities must rethink program structures to offer a seamless journey from initial outreach to ongoing support.
- Customer-Centric Messaging: Clear, customer-focused communication strategies are essential to building trust and engagement in electrification programs, particularly in areas where explicit discussions of decarbonization face regulatory or cultural barriers.
- Data-Driven Equity: Ensuring equitable participation in electrification programs requires a strong focus on accessibility and inclusivity, particularly for underserved communities.
- Stakeholder Collaboration: Effective electrification efforts require broad collaboration among utilities, contractors, regulators, and community groups to achieve shared energy goals. Creating shared goals and clear communication channels will help align these diverse stakeholders.
Building electrification represents a pivotal opportunity to reshape the energy landscape while improving health, equity, and sustainability. As utilities and program implementers navigate this transition, collaborative, data-driven approaches will be key to scaling efforts and delivering meaningful results. The shift may be complex, but the rewards—for customers, communities, and the planet—are well worth the effort.
