High-Efficiency Gas Appliances Belong in the Energy Affordability Debate
America’s conversation on energy is often framed as a choice between affordability, reliability and emissions reduction. But in reality, meeting the country’s energy needs doesn’t have to mean choosing one goal over the other.
As policymakers and utilities plan for rising demand, winter weather and pressure on household budgets, there is an opportunity to look at practical solutions that can help address all three. An often-overlooked option that deserves to be in the conversation is building on and improving the efficiency of natural gas appliances already used by millions of Americans.
High-efficiency natural gas appliances can help customers use less energy while still relying on familiar and reliable technologies and existing infrastructure. They can also provide utilities and policymakers with another tool for further reducing emissions and managing demand as the energy system evolves.
Efficiency Can Support Affordability and Reliability
The American Gas Foundation (AGF) recently examined the potential of high-efficiency direct-use natural gas appliances in residential and small commercial buildings across modeled decarbonization pathways.
In residential buildings, high-efficiency natural gas appliances could reduce emissions by more than 20% at a low cost of $5–$30 per metric ton of carbon dioxide-equivalent reduced. Gas furnaces alone can provide 14% abatement at a net savings of $49 per metric ton. For small commercial businesses, high-efficiency natural gas appliances could reduce emissions by 19% while delivering net savings of $105 per metric ton.
For customers, these improvements can happen without the need for disruptive modifications to a home. When a furnace or water heater reaches the end of its useful life, replacing it with a high-efficiency natural gas model can reduce fuel use while avoiding the need for costly systemwide changes. It is a practical way to improve efficiency while building on the systems many households already use.
The AGF findings are particularly relevant as electricity demand grows. Demand growth across the board is contributing to expectations for increased electricity consumption in our country. At the same time, utilities are preparing for periods of peak demand including winter months when customers need reliable heating most.
Using natural gas directly for heating, cooking and clothes drying can help avoid converting that energy into electricity first, while efficiency improvements can further reduce the amount of fuel customers need.
Advancements in natural gas efficiency give utilities and policymakers another option for meeting customers’ needs while managing pressure on electric generation, transmission and distribution infrastructure.
Affordability Matters to Customers
For families and small businesses, energy policy ultimately shows up in the monthly bill.
The AGF’s study found that some electric pathways could cost $35-$58 per metric ton of emissions reduced, with costs driven in part by equipment and installation expenses in colder regions, where higher heating needs and back-up systems may be required.
That does not mean one technology is right for every customer. Homes, businesses and climates vary, and energy needs are different from one community to the next. However, it does mean that affordability should remain an important consideration when evaluating how to reduce emissions and meet growing energy demand.
More Options for America’s Energy Future
The energy conversation does not have to be an either – or choice between affordability, reliability and emissions reductions.
High-efficiency direct-use natural gas appliances are a reliable option in our nation’s toolbox to help customers use less energy, reduce emissions and give utilities and policymakers more flexibility as they plan for the future.
As America’s energy needs continue to evolve, policymakers should consider technologies based on the outcomes they can deliver for customers and the broader energy system.
Improving the efficiency of the systems Americans already rely on can provide meaningful benefits today while giving utilities and policymakers another tool to meet tomorrow’s energy challenges.