Plan, Prepare, and Execute: The Ideal Journey to Electrification

With buildings accounting for 35% of all carbon emissions in the U.S. and 40% of total energy use, electrification is no longer a “nice to have” for building owner and operators; it’s now a “must have” requirement for many in the buildings sector. Those who have completed upgrades are finding that while electrifying a commercial or multifamily building can be a significant undertaking, it’s also a highly impactful project. Electrification can result in increased energy efficiency, reduced carbon emissions, and compliance with regulations and ordinances.

Increasingly, many states and municipalities are enacting legislation that requires buildings to reduce their carbon emissions. A new imperative for many building portfolios is to meet both regulatory and corporate sustainability goals. In New York City, many buildings are now subject to comply with NYC’s landmark Local Law 97 and are working to electrify and significantly reduce carbon emissions to comply with the law. Other cities throughout the U.S. are looking to adopt similar laws and curb carbon emissions in their buildings.

With guided planning and a phased approach, your building can accomplish electrification in full or in part and significantly reduce carbon emissions. Timing can also be a key factor in devising a building’s electrification approach. With financial incentives and tax breaks from the federal Inflation Reduction Act, as well as state and county agencies, many financial advantages currently exist to help building owners and operators find savings while optimizing energy efficiency. 

Taking a phased approach to electrification, it’s often best to break your electrification efforts into three phases.

• Phase 1: Assessments and Evaluations
• Phase 2: Electrification Readiness
• Phase 3: Implementation

Finally, it is vital to benchmark your building’s energy usage over time so that you can report on the true energy efficiency savings secured in the long term. Benchmarking should begin as soon as you begin considering approaches to electrification so that there is a reportable history with baseline measurements.

Let’s start with Phase 1: Assessments and Evaluations

Assessing your building systems and infrastructure is top of the list when setting off on the path to electrification. This is the time to secure a professional energy audit and have a feasibility study conducted. Future planning requires a clear picture of how energy is currently used by your building. A high-quality energy audit enables you to understand current energy usage, as well as the condition of your building systems and equipment, such as HVAC, insulation, and boilers. The goal in this phase is to identify areas where energy usage can be reduced so that the property is positioned to move toward electrification. Many older buildings have oil or gas systems that require careful planning but provide a great opportunity to switch to electrification due to the initial investment required for the retrofit.

By completing assessments of the existing equipment, and gaining an understanding of the current energy usage, you can build an outline of the long-term plan and also find quick financial payback measures. A thorough energy audit allows you to identify additional energy usage factors, such as systems for heating and cooking, and identify which low-cost measures can be implemented quickly.

In the Assessments and Evaluations phase, it’s also important to engage key stakeholders:

• Start with Occupants: Educate and involve occupants early on. Provide information on costs, benefits, and how electrification aligns with sustainability regulations and goals.
• Incentive and Rebate Programs: Research federal, state, and city incentives. Many states and municipalities offer incentives for electrification projects.
• Operations and Maintenance Staff: Any major upgrades to existing equipment should include training the maintenance staff to ensure optimal energy savings and efficient operation.

Certified engineers can be engaged to help you manage utility coordination, incentive procurement, and staff training. Look for professional firms with proven knowledge of both building retrofitting and the current incentive landscape. Professionals can identify all the electrification measures that will apply to your building, as well as any retro-commissioning or operational upgrades needed to extend equipment life.

Phase 2: Electrification Readiness

When assessments and evaluations are complete, your building should have a blueprint to enter the electrification readiness stage. Electrification readiness is comprised of two major steps for most properties: First, implementing load-reducing measures, and second, upgrading electrical infrastructure.

The heating and cooling loads can be reduced by first upgrading the building envelope. This can often include replacing windows, adding insulation to the roof, and installing exterior insulation and finishing systems on the facade.

Overhauling mechanical ventilation is another critical way to reduce heating and cooling loads. Your building can work with experienced contractors to clean and seal exhaust drafts, install Constant Airflow Regulating (CAR) dampers, and replace exhaust fan motors. Some buildings should also consider installing Energy Recovery Ventilation (ERVs).

To reduce Domestic Hot Water (DHW) load, consider installing water-efficient plumbing fixtures and balancing the DHW distribution.

The most important step in electrification readiness is evaluating existing electrical infrastructure and upgrading as necessary. This step requires an understanding of the electrification technology the property is considering for installing. Upgrades will most likely require coordination with electric utility service and the timeline can vary based on existing service, required upgrades, and utility service capacity. In multifamily properties, two major areas for potential electrical upgrades are the common area electric service and the apartment electric service. Either or both upgrades may be necessary based on the electrification technology.

Quality Control is Key

Upgrading electric infrastructure often comes with many quality control factors to keep in mind:

• Hire a licensed electrician to upgrade equipment in coordination with service upgrades. For example, older buildings may need new electrical panels to handle increased electric loads.

• Check whether building service upgrades are necessary for both common areas and individual units.
• File a load letter with the relevant electric utility.

• Receive confirmation from the electric utility on whether expansion of service is possible before proceeding with design.

Phase 3: Set an Electrification Timeline and Begin Implementation

Once the property is ready to enter Phase 3, set a timeline that phases in electrification upgrades over a long-term period. This can often be up to several years, depending on the technology and the necessary upgrades. A phased approach can often help properties achieve full electrification more efficiently. For most properties, converting domestic hot water (DHW) to electrification could be feasible before diving into heating and cooling electrification. This approach also allows the property to experience the results of installing such systems from an energy usage and maintenance perspective. As the technology is constantly evolving, the phased approach could also benefit the property by selecting the most applicable and efficient HVAC system. Agreeing on a timeline can involve many stakeholders, and it’s also best to incorporate budget and occupant feedback at this point.

Technology and Equipment Considerations

Implementation tactics vary by building and by technology type:

• Choosing between hybrid technology and full electrification technology
• Central systems versus unitized system
• Packaged Terminal Heat Pumps (PHTPs) and Mini/Multi Splits are unitized systems
• Major Central Service systems are Variable Refrigerant Flow (VRF) Systems and Low Temperature Heat Pumps
• Metering setup
• Updates to utility consumption and demand charges

On the Path to Electrification

Evaluating systems and implementing new measures is usually complicated and challenging. By starting with a clear assessment, involving all stakeholders, and using available incentives can make the electrification process smoother and more cost-effective. A knowledgeable consultant can create a long-term capital plan based on the three-phase framework and guide your property on the implementation path.