Home Electrification: Everything You Need to Know
Discover what home electrification entails and why it’s a cost-saving and planet-saving endeavor growing in popularity.
By Anne Fonda
Home electrification is a growing trend in the United States as more and more homeowners discover the benefits of an all-electric home. Essentially, electrification means phasing out the oil or natural gas-powered heating systems and appliances in your home and replacing them with more energy-efficient electric models.
In new construction, it means thoughtfully planning the home’s heating and cooling system, water heating system, and appliances to take advantage of modern electric technology such as induction cooktops and heat pumps. In new construction projects, there are immediate cost savings tied to avoiding gas line installation.
At this point, home electrification is completely voluntary. But it is the wave of the future. In California, for example, over 65 local jurisdictions have already adopted policies to promote or require building electrification, and the California Air Resources Board has approved a strategy to ban the sale of gas heating and water heating equipment statewide starting in 2030. This is all part of an effort to reduce carbon emissions and improve air quality.
Let’s take a look at some of the factors to consider when it comes to the switch to an all-electric home.
#1: Electrification of heat: heat pumps are the future
We recently sat down with Jason LeRoy, Director of Advanced Technology for Trane Residential HVAC to discuss the electrification of heat and what homeowners need to know. It was an enlightening conversation.
By opting for an electric heat pump system when it’s time to replace your HVAC system, you’re joining thousands of homeowners across the United States and millions of homeowners across the world who have chosen an all-electric heating solution such as a ducted heat pump system or ductless mini-split system.
You can greatly reduce your energy usage, making a heat pump system a cost-effective choice. In addition, replacing a gas furnace or boiler with an electric heating and cooling system reduces greenhouse gas emissions, the main driver of climate change. Learn about the practical pros and cons of the heat pump vs furnace debate to make an informed decision.
#2: Replacing gas appliances with electric appliances
Home electrification takes things a step further. You can approach replacing gas appliances with electric models in a phased-in approach. Don’t replace an appliance that is in good working order but explore electric models as opposed to their gas counterparts when it’s time to replace these appliances.
These appliances include:
- Gas furnace
- Gas stove
- Gas water heater
- Gas washer
- Gas clothes dryer
You may have one or all of these appliances powered by natural gas.
#3: Cost concerns
Saving money on your utility bills may sound good, but you’re probably wondering how much more a heat pump system costs than replacing a furnace, or if an electric stove, washing machine, or clothes dryer costs more than the natural gas equivalent.
As Jason LeRoy said recently, “While a heat pump is slightly more expensive than an air conditioner, it’s important to remember that the heat pump system is replacing two systems: an air conditioner AND a furnace. That means the net upfront cost of your new heat pump, which is a heating and cooling system, is going to be similarly priced to a furnace and air conditioner combination.”
As for appliances, the last time we looked, the prices were comparable whether you choose gas or electric with comparable ranges, washers, and dryers. Financial incentives may only apply to heat pump clothes dryers, which are at least 28% more energy efficient than a standard electric dryer.
Although you may never have heard of a heat pump clothes dryer, major appliance brands make them, and you can find them at your local big box stores and online vendors.
Tax credits and rebates
The upfront cost for a heat pump system or electric appliances can be at least partially offset by federal tax credits and rebates under the Inflation Reduction Act of 2022. While we’ve focused primarily on HVAC tax credits and heat pump rebates, there is also the Home Electrification and Appliance Rebates (HEAR) program designed to help low to moderate-income households (both homeowners and renters) pay for these upgrades.
Some of the qualifying upgrades include:
- Heat pump heating and cooling
- Electric stoves (induction stoves are the most efficient)
- Heat pump water heaters
- Heat pump clothes dryers
- Electrical panel upgrades/wiring upgrades
- Weatherization
Rewiring America has a great resource section on HEAR electrification rebates. You can even sign up for updates in your area. They also have a calculator to help you determine if your household income qualifies you for the rebate program. Lastly, if you’re interested in upgrading to an all-electric home, they have a personalized home electrification planning tool.
In addition, your electric company may provide rebates, and there may be manufacturer’s rebates available. The ENERGY STAR® Rebate Finder is a good place to start.
Our Offers, Rebates, and Tax Credits page will show you results for your area on new Trane Residential HVAC products.
#4: The greening of the grid
“Electrification and the greening of the grid need to happen simultaneously,” LeRoy recently told us.
The United States is putting extensive resources into upgrading our energy infrastructure. The Bipartisan Infrastructure Law, passed in 2021, dedicates more than $20 billion to modernizing and upgrading our electric grid for reliability, security, and resilience.
Funds have been allocated to:
- Enhancing grid security
- Constructing new transmission lines
- Reinforcing existing transmission lines for weather resistance
- Making smart grid updates
- Expanding battery storage capacity
- Creating local microgrids
- Modernizing underground monitoring and control equipment
In addition, more and more of our power comes from renewable, green energy sources such as wind, solar, and geothermal. According to the Energy Information Administration (EIA), in 2023, about 21% of total U.S. electricity generation was from renewable energy sources. That percentage is only expected to grow.
#5: Improving indoor air quality
Reducing carbon emissions improves outdoor air quality and reduces the climate impact of your heating and cooling system and home appliances. But switching from gas to electric also improves your indoor air quality (IAQ).
That’s because burning fossil fuels to heat your home, heat your water, cook your food, and wash and dry your clothes can result in the release of pollutants into your home. According to the Environmental Protection Agency (EPA), the easiest way to improve indoor air quality is to control or eliminate the source of pollutants.
They list fuel-burning appliances first in their list of indoor air pollution sources. They also list this caveat. “The relative importance of any single source depends on how much of a given pollutant it emits and how hazardous those emissions are.”
In some cases, factors such as how old the source is and whether it is properly maintained are significant. For example, an improperly adjusted gas stove can emit significantly more carbon monoxide than one that is properly adjusted.”
#6: Reducing your carbon footprint
Reducing your carbon footprint may not be a top priority for you as you explore the pros and cons of home electrification. To you, it may be a side benefit to saving money on your heating and cooling bills and improving your indoor air quality.
Think of it as a win for your wallet and a win for the planet. As more people around the world adopt more environmentally friendly and sustainable practices, we can delay and even reverse some of the harmful effects of climate change.
Check out our Green Guide for some more tips on how to reduce your energy consumption and save money on your energy bills.
Trane’s commitment to sustainability
Sustainability is at the core of everything we do. That’s why we’ve committed to The Gigaton Challenge. Customer use of our products is our largest area of opportunity to reduce carbon emissions.
Through this commitment, we've set a goal to reduce one billion metric tons of greenhouse gas emissions from our customer's carbon footprints by 2030. Those include residential and commercial HVAC customers as well as customers of our other brands.
Our math shows that this reduction equates to 2% of the world's annual emissions – or, the annual emissions of Italy, France, and the U.K. combined. We made our commitment in 2019, and we are on track to meet our goal.
Work with the HVAC sustainability experts
When it’s time to replace your air conditioner or furnace, consider upgrading to a more sustainable heat pump system. Contact your local Trane dealer to explore all of your options to see what HVAC system offers the best comfort solutions as well as the highest long-term energy savings.
Anne Fonda, Content Writer
A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.
She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.
When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.
Expert review by Josef Hejda, Electrification Commercialization Leader; and Stacy Downie, Sustainability Solutions Marketing Manager
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