Maybe you’ve heard the phrase “electrify everything.” But what does that really mean?
The idea is to get a cleaner power grid overall by generating the electricity that powers homes and businesses through carbon-free sources such as wind and solar, instead of fossil fuels such as coal, oil and gas.
Then when we electrify the stuff we use every day (such as stoves, furnaces or cars), we can significantly reduce emissions, because we’ll be plugging into a cleaner power grid.
Burning fossil fuels such as coal, oil and gas to power cars, trucks, planes and trains and to generate the electricity society relies on is the single largest source of carbon emissions that are driving the climate crisis. But the world, including us here in the Southland, is slowly moving towards cleaner power sources that generate less local air pollution and planet-heating emissions.
California has the goal to generate 100% of its power through renewable, carbon-free energy sources by 2045. L.A. aims to get there by 2035. That'll require speeding up the buildout of renewable energy infrastructure and battery storage by a whopping 700%.
In 2021, California got about 34% of its energy from renewable sources with most of the rest coming from gas-fired power plants. And the city of L.A. got about 35% of its energy from renewables, with the rest from gas, nuclear and coal.
So creating a cleaner power grid that generates electricity through more renewable energies while electrifying the machines we rely on every day will help significantly lower dangerous planet-heating pollution. If we don’t lower those emissions fast, the most catastrophic impacts of the climate crisis will only become more likely.
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In L.A., existing buildings make up more than 40% of the city’s total greenhouse gas emissions. That’s why last year, L.A. became the 69th and largest city in the state to require all new buildings to be all-electric. That’s now the law of the land for new construction (though there are exceptions for emergency equipment and commercial cooking). Read more on electric-only buildings and what that means here.
But the good news is there are a lot of decisions we can make at home that matter in the long run — and can even save us money. From gas stoves to furnaces to water heaters to clothes dryers, appliances we use every day are some of the biggest contributors to planet-heating emissions and a rise in our utility bills.
“42% of our energy related emissions in this country are tied to decisions we make around our kitchen tables: what kind of cars we drive, how we heat the air and water in our homes, how we cook our food, and how we dry our clothes,” said Ari Matusiak, co-founder and CEO of Southern California-based nonprofit Rewiring America, which created a guide and interactive website for homeowners and renters on how to access federal rebates to electrify at home. “What that means is that collectively the machines that we rely on in our day-to-day lives are really the gating item to whether or not we are successful in addressing the climate crisis.”
Collectively the machines that we rely on in our day-to-day lives are really the gating item to whether or not we are successful in addressing the climate crisis.
And all those machines are meant to last a long time, Matusiak said, which is why, for example, choosing to replace that aging gas boiler with a heat pump matters, especially as the energy transition accelerates over the next decade.
These newer, electric machines are also a lot more efficient than traditional fossil-fueled machines, which means they actually use far less energy to do what they're supposed to — e.g. cooling or heating your home. Heat pumps, for example, are three to five times more energy-efficient than traditional methane gas boilers. That means by opting for a heat pump instead of another replacement gas boiler, you can save on your gas and electric bills.
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Electric appliances can also help insulate you from wild swings in gas prices. However, you may not see as big of a price drop as you might expect: That’s because what’s in your utility bill isn’t just about how much energy you use. But the current bill structure could change soon.
These new electric machines are currently pretty expensive, but that’s where rebates and other incentives can help. And as electric appliances and cars become more common, prices will go down.
Right now, though, there are a lot of ways you can save money by “electrifying everything.” That’s largely because of available technology and unprecedented funding that's being offered from the federal, to the state to the local level to incentivize electrification. Read on for how to access those incentives.
Federal rebates, tax credits and incentives
The Inflation Reduction Act provides historic incentives for Americans to curb planet-heating emissions at home. It largely does this through tax credits and rebates.
Through the Inflation Reduction Act, you can receive tax credits that could cover up to 30% of the cost to install rooftop solar and battery storage, up to $3,200 per year for certain improvements to insulate your home, up to 100% of the cost of new electric appliances, and tax credits up to $7,500 for a new electric vehicle or up to $4,000 for a used one. How much money you receive depends on your individual situation and income. For example, a six kilowatt rooftop solar installation — the system an average home would need before electrifying — costs about $15,300, and the average tax credit would be around $4,600.
All in all, this legislation could help lower U.S. emissions more than 40% below 2005 levels by 2030 (The U.S.’s current goal is to cut emissions more than 50% below 2005 levels by 2030). The legislation is also expected to help cut household energy costs by an average of $1,800 per year.
- Rewiring America created an in-depth, personalized guide where you can type in your household size and income level and they’ll identify what federal rebates and credits you’re eligible for. Check it out here. They also have a web page with resources for homeowners and renters.
- The White House also has its own guide on all the rebates and tax credits available through the Inflation Reduction Act. Check it out here.
- The High-Efficiency Electric Home Rebate (HEEHRA) program will provide instant rebates for certain electric appliances for low- and moderate-income households. The Homeowner Managing Energy Savings (HOMES) will provide rebates for energy efficiency home retrofits. Both rebates are expected to be available in 2024 (the Department of Energy is still developing program guidelines). Read more and stay up-to-date on these programs here.
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Yale's Climate Connections website breaks down which electric and hybrid vehicles qualify for new federal tax credits here.
State rebates, tax credits and incentives
From electric vehicles to energy-saving options at home, the state of California has its own electrification incentives.
Depending on your eligibility, Californians can get as much as $24,500 back for purchasing an electric or hybrid vehicle. California incentives also include ways to get fee-free loans to improve energy efficiency or install electric appliances at home, whether you’re a renter or a homeowner.
You can view all of the state incentives at this website. The website also allows you to search for local incentives by zip code.
Local rebates, tax credits and incentives
The South Coast Air Quality Management District (SCAQMD), which regulates air pollution across much of L.A., Orange, Riverside and San Bernardino counties, offers incentives and rebates for low- and moderate-income households in its jurisdiction. (Find out if you are eligible here). Eligible residents can get up to $12,000 to replace their vehicle with one that's electric or otherwise more fuel-efficient.
- Check your eligibility and learn more here.
Your local water and power provider likely has rebates and incentives of its own. The L.A. Department of Water and Power, for example, has an array of programs to help you lower your water use, energy use and utility bills. Check with your local water and power provider to find out what local incentives you may be able to access.
Tell us what your experience with electrification incentives has been like
Have you benefitted from climate rebates and incentives? Have you tried to access these options but faced obstacles? Let us know about your experience by writing to us below.
