First-time analysis combines household customer and modeled data to quantify electrification benefits
REDWOOD CITY/SUNNYVALE, CA – December 20, 2023 – A first-of-its-kind analysis from Silicon Valley Clean Energy (SVCE) and Peninsula Clean Energy found on-bill savings of roughly $380 annually ($32 monthly) for existing single-family homes that switch from gas appliances to standard electric equipment.
Those savings increased to $495 annually ($41 monthly) when switching to high-efficiency electric equipment. As outlined below, there are also significant environmental benefits to electrification:
“As the electrification market evolves, we are able to see that it’s less expensive to electrify and can actually save money, including directly on customer bills,” Peninsula Clean Energy CEO Shawn Marshall said.
“This analysis corroborates that electric equipment consistently results in bill savings when paired with an appropriate electricity rate. Affordability is an important consideration of electric technologies that supports the feasibility of the clean energy transition, in addition to increasing the health and safety of our customers and community,” said Girish Balachandran, SVCE CEO.
The bill analysis found that the key to unlocking more bill savings with electric technology is tied to choosing a suitable rate plan. Customers who are going electric in their home and vehicle should move to rates that provide lower off-peak pricing, including E-ELEC and EV-2A, to benefit from more significant bill savings.
The joint analysis focused on median customer usage to understand potential bill impacts of electrification for most customers. Less typical scenarios, including partially occupied homes or larger homes with significant HVAC loads, are not included in the study.
The analysis used real aggregated customer metered data for electric and gas, combined with modeled data in a unique approach that provides a more realistic perspective than traditional modeling alone. The analysis is based on household customer data located in California’s Central Coastal Range (Climate Zone 4) and represents energy usage for an existing single-family home of roughly 1,830 square feet.
The cost savings findings are consistent with a broader 2019 analysis by Energy + Environmental Economics (E3), which evaluated the consumer economics, greenhouse gas savings and grid impacts of electrification in residential low-rise buildings across six representative homes types across six climate zones in California.
Multiple local, state and federal tax credits and various rebates can be used to lessen the cost of home electrification.
For people with limited income, Peninsula Clean Energy has a service that will help electrify your house for free. For instance, if you are a single person with an income up to $100K, Peninsula Clean Energy will replace your oldest gas appliance and do the electrical wiring as well at no cost. Peninsula Clean Energy also offers 0% loans of up to $10,000 for households to install electrification measures.
SVCE offers up to $8,000 to customers when they upgrade gas-powered space and water heating to electric heat pump equipment. SVCE customers may also see more savings on the Electric Home rate, which provides a deeper discount during off-peak times.
In addition to potential on-bill savings, upgrading from gas to electric technology in homes can improve indoor air quality and reduce local pollution.
View the full analysis at svcleanenergy.org/wp-content/uploads/SVCE-PCE-Single-Family-On-Bill-Impacts-Results-2023.pdf.
About Silicon Valley Clean Energy
Silicon Valley Clean Energy is a not-for-profit, community-owned agency providing clean electricity from renewable and clean sources to more than 275,000 residential and commercial customers in 13 Santa Clara County jurisdictions. As a public agency, net revenues are returned to the community to keep rates competitive and promote clean energy programs. Silicon Valley Clean Energy is advancing innovative solutions to fight climate change by decarbonizing the grid, transportation, and buildings. Learn more at SVCleanEnergy.org.
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About Peninsula Clean Energy
Peninsula Clean Energy is a Community Choice Aggregation agency. It is the official electricity provider for San Mateo County and for the City of Los Banos. Founded in 2016 with a mission to reduce greenhouse gas emissions, the agency serves a population of 810,000 by providing more than 3,600 gigawatt hours annually of electricity that is 50 percent renewable, 100 percent clean and at lower cost than PG&E. As a community-led, not-for-profit agency, Peninsula Clean Energy makes significant investments in its communities to expand access to sustainable and affordable energy solutions. Peninsula Clean Energy is on track to deliver electricity that is 100 percent renewable by 2025. Follow us at PenCleanEnergy.com, Twitter, Facebook and LinkedIn.
Peninsula Clean Energy