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Illinois’ 2021 clean energy law has allowed utility ComEd to help hundreds of low-income households in Chicago convert their gas-powered home appliances into electric ones to reduce their utility costs and improve their safety. The law, which is rarely seen across the US, allows utilities to meet energy conservation mandates by increasing electricity use, replacing gas-fired appliances with energy-efficient electric versions, reducing fossil fuel consumption and emissions. However, the cost of these replacements is high, and the future of federal incentives for home electrification, such as tax credits and the Home Electrification and Appliance Rebates programme, is currently uncertain.
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Originally posted by Canary Media.
When Chicago resident and senior citizen Jean Gay-Robinson saw her old gas appliances replaced with modern electric versions, courtesy of utility company ComEd, she couldn’t contain her happiness. Not only did this mean she would never have to replace an appliance again, but it also meant lower energy bills and a safer home.
Benefitting from a 2021 Illinois clean energy law, Gay-Robinson is one of hundreds of people who have seen their old, gas-fired equipment replaced with newer, electric versions—an initiative that aims to meet energy conservation mandates by reducing household bills, despite an increase in electricity usage.
Electric Appliances: A tool to decarbonize buildings
Modern electric appliances like induction stoves, electric dryers, and heat pumps are generally more energy-efficient than their fossil fuel counterparts. According to Nick Montoni, a senior program director of policy and markets at the North Carolina Clean Energy Technology Center at North Carolina State University, these appliances reduce the amount of fossil fuels burned, even in areas where the power grid runs on gas and coal. He further noted that emission levels decrease as more renewable energy is added to the power grid.
Moreover, a switch to electric cooktops results in cleaner indoor air due to a reduced emission of harmful pollutants from gas stoves. However, replacing appliances can be expensive, and federal incentives for home electrification are dwindling under the Trump administration.
Incentives for Electrification
“Electrification is expensive as it requires an up-front cost,” said Montoni. “For someone to afford a heat pump, an induction stove, or an electric water heater, they need rebates and incentives.” As such, state policies that encourage utilities to fund electrification can greatly impact the adoption rate.
Illinois Paves the Way for Electrification
Illinois law requires ComEd to decrease electricity consumption by an amount equivalent to 2% of the utility’s annual sales in the early 2020s. The state’s 2021 Climate and Equitable Jobs Act stipulates that a portion of the required energy savings can be achieved through electrification—a policy that is both interesting and rare, according to Montoni.
Michigan too, under a 2023 law, allows electric and gas utilities to include electrification as part of their mandatory energy waste reduction.
Electrification Programs in Illinois
ComEd’s whole-home energy-efficient electrification program covers all costs for electric appliances and heat pumps for households with income at or below 80% of the area’s median income. This program, since its launch in 2022, has electrified more than 700 low-income households. The utility company has also offered rebates to customers of all incomes for the purchase of electric appliances.
Impacts on Low-Income Households
According to its approved energy efficiency plan, ComEd must ensure that at least a quarter of energy savings from electrification are for the benefit of low-income households. Gay-Robinson noted that she has saved money on her bills since her home’s retrofit the previous summer. She even encouraged a friend to undertake the ComEd overhaul, saying that the free electric heating-cooling system may have saved her friend’s life.
Future Endeavors
ComEd has committed to spend $162.3 million over the next four years on electrification and weatherization [home insulation], reducing the power required to heat and cool spaces. On the other hand, Ameren, the utility provider in central and southern Illinois, will spend $5 million through 2029 to assist customers in switching from propane-fired heat to electric heat pumps.
The Challenges Ahead
With the recent spike in electricity prices due to the record-high cost of ensuring sufficient power generation for the PJM Interconnection regional grid, which spans 13 states, home electrification retrofits that lower energy bills may be harder to come by in Illinois and beyond.
However, Philip Roy, ComEd’s director of clean energy solutions, remains optimistic. He sees a lot of momentum with these programs and believes that combining traditional energy efficiency, electrification, rooftop solar, and battery storage can accelerate the transition.
Correction: A previous version of this story incorrectly stated that ComEd’s energy-efficiency plan requires that low-income households receive a quarter of spending on electrification. The plan actually requires that low-income households receive a quarter of energy savings from electrification.
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