The state’s new energy code is expected to raise the cost of residential construction but also lower energy bills substantially for homeowners and renters, making it cost-effective overall with a payback of 10 years or less, according to a report commissioned by the New York State Energy Research and Development Authority. Over 30 years, households are expected to save an average of about $5,000 due to a 17% reduction in energy use.
Other research indicates all-electric construction is typically less expensive than that for buildings equipped to burn gas or fuel oil. Electric-only projects allow developers to forgo installing costly fossil-fuel infrastructure alongside the electrical systems requisite in modern buildings. A 2022 analysis by the decarbonization nonprofit New Buildings Institute, for example, found that building an all-electric single-family home in New York costs about $8,000 less.
The all-electric code will improve air quality by reducing reliance on fossil-fuel-fired boilers, furnaces, water heaters, and stoves. These conventional appliances spew harmful byproducts such as carbon monoxide, particulate matter, benzene, nitrogen oxides, and more, which can cause respiratory and cardiovascular issues — to lethal effect. In 2017, fossil-fuel use from New York buildings caused $21.7 billion in health impacts and nearly 2,000 premature deaths, more than in any other state.
“Numerous studies … show that both air pollution and climate change disproportionately impact low-income communities and communities of color,” said Lonnie Portis, director of policy and legislative affairs at the community-based nonprofit WE ACT for Environmental Justice. The state’s all-electric building standard “is a significant step forward for environmental and climate justice.”
The new rules will not only get heat pumps into new construction but help boost adoption in existing homes, according to Jay Best, CEO of home energy-efficiency company Green Team Long Island.
“We’re always telling people about heat pumps … solutions that are going to save them money and make their homes more comfortable,” Best told Canary Media. “But people are apprehensive because it’s something they’re not used to,” despite heat pump units outselling gas furnaces nationally.
“The code … sets a bar; this is the minimum that the state says is legal to build,” Best said. That “changes people’s view of the technology.”
Alex Beauchamp, Northeast region director at Food & Water Watch, underscored that passing the All-Electric Buildings Act and getting it into the state code was a victory of David-and-Goliath proportions, with “fossil-fuel companies, plus the gas utilities, plus big real estate” rallied in opposition, he said.
“When New Yorkers come together … we can win even in the face of opponents with an almost-limitless budget,” he said. “That is how we won this bill. It’s also how we are going to continue the fight to get fossil fuels out of all the existing buildings in the state.”
