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All-Electric New Homes: A Win for Climate and the Economy

The Rocky Mountain Institute recently examined the economics and carbon emissions impacts of electrifying residential space and water heating in seven cities across the US – including newly constructed single-family homes in Minneapolis.  They found that a new all-electric home in Minneapolis saves $1,900 in net present costs and 28 tons of CO2 emissions over a 15-year period compared to a new mixed-fuel home, with roughly equivalent up-front costs and substantial annual bill savings.   There are significant energy savings with heat pump space and water heaters over corresponding gas appliances, even though electricity costs more per unit of energy than gas in Minneapolis.  A new all-electric home in our region (Minneapolis) has 9% lower annual utility costs compared to new mixed-fuel homes (with air conditioning, gas furnace, gas water heater, and gas oven).  Carbon emissions from space heating, water heating, and cooking are 51% lower in the all-electric home, due to more efficient appliances and increasingly low-carbon electricity.

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