Electrification Costs to Consumers to Reduce GHG Emissions

Greenhouse effect around Earth

A law signed in 2018, AB3232, mandates a 40% reduction in greenhouse gas emission by 40% by 2045. Greenhouse gas emissions (GHG) from buildings account for about 25% of California's total emissions. 

Building emissions stem from direct and indirect sources:
Direct emissions come from
• Combustion of fuels for heating and cooking
(gas stoves, gas heaters).
• Gas leaks (gas lines in buildings, unlit pilot lights).
• Hydrofluorocarbon (HFC) leaks (from refrigerators and other compressor-based systems for space conditioning and water heating, during use and disposal).* Indirect emissions come from generation of the electricity used in buildings. 

According to the California Building Decarbonization Assessment, Californians can reduce emissions by:

    "Expanding use of efficient electric heat pumps.
        • Investing in weatherization and electrification of existing buildings.
        • Reducing refrigerant leakage.
        • Planning for and promoting substitutes for natural gas in existing buildings, primarily electricity; considering renewable gases where available at reasonable cost."

There are 7 ways to decarbonize a building as outlined under this program through the California Energy Commission:

1. Replace gas-fueled appliances with efficient electric alternatives.
2. Continue decarbonizing electricity by growing the low-carbon share of the generation portfolio.
3. Foster energy efficiency through incentive programs, appliance standards, building standards, research, and financing.
4. Transition to using better refrigerants and reduce associated leakage
5. Grow distributed energy resources such as rooftop solar photovoltaic (PV) and onsite battery storage.
6. Decarbonize the gas system by displacing natural gas with renewable gas produced from carbon-free electricity or existing waste streams.
7. Give building owners and occupants incentives to shift their electricity use in response to the timing of energy costs, GHG emissions intensity, or electricity grid emergencies.

So what can consumers do?  Californians should start looking now at what will be an additional investment in their homes. Millions of single family homes (which are almost 90% of owner-occupied housing) were not built to be electrified, and will need substantial changes including solar panels, amp volt changes, new appliances, and professional installation.   And this will come at a cost in order to retrofit single-family homes and units in multi-family structures.  

Cost per housing unit for a pre-1978 home retrofit is estimated as follows:

San Francisco        $34,790 

San Jose                 $36,500

Sacramento            $29,000

Los Angeles           $34,000

This Residential Building Electrification in California study outlines in explicit and lengthy detail the aspects of appliances, water heaters, refrigerators, utility gas and heating features of home which will need to be changed out in time.

Julia Huntsman, REALTOR, Broker | http://www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996