There’s something the electric utilities don’t talk about – and that’s how much it is going to cost to switch to electric heating.
Let’s start with the costs to homeowners. Switching your home to electric heat could cost you as much as $42,000!1
- Most average homes need at least two heat pumps, larger homes at least three.
- Each standard heat pump will cost somewhere between $4,000 and $7,000, but cold-climate heat pumps can be as much as 30% more – that’s up to $9,000 each, or $18,000 for an average home, and up to $26,000 for a larger home!
- Most homes will need to upgrade their electric service to handle the new heat pumps, so add another $3,000 - $5,000 for electrical work.
- You’re going to need a new heat pump water heater, that will cost you $3,000 - $4,000.
- If you have a steam boiler and enjoy the high levels of heating and comfort it provides, you will have to convert your steam boiler to hydronic, to work with the heat pump. That could mean a mess of construction to update the pipes in your walls, and another $5,000 - $7,000.
After you switch, you will need to pay the utility – and electric prices are rising every year. The U.S. Energy Information Administration (EIA) is anticipating more than a 3% increase in residential electricity prices next year, on top of increases over the last several years. In fact, if the EIA’s forecast is correct, you could be shouldering a 16% increase in electricity prices in only four years.2
There are Huge Electric Infrastructure Costs
Turns out, having the entire country “go electric” isn’t cheap. Decarbonizing and modernizing existing electric power plants could cost $7-$8 trillion and take 20 years. That is equal to approximately $50,000 per U.S. home!
World-wide, in order to reach net-zero through electrification by 2050, the International Energy Association (IEA) has estimated that annual investment in transmission and distribution grids will expand from $260 billion to $820 billion in 2030.3 At the same time, you lose your choice in home heating, because with the IEA model, once your heating system breaks down, you will have no choice but to switch to electric heating.
On the other hand, when you use clean, renewable Bioheat® fuel, there are no additional costs.
- Bioheat® fuel is a drop-in fuel. It is delivered and used in your existing oil-fueled heating equipment, and its price is comparable on a gallon-to-gallon basis. In fact, as crude oil prices rise, the biodiesel in Bioheat® fuel can help lower your fuel bills.
- You don’t need an expensive heating system conversion that could cost between $18,000 - $42,000.
- The production and distribution infrastructure is already in place and turning out billions of gallons of Bioheat® fuel every year.
Make your heating choice Bioheat® fuel – and save money … and the planet!
1 The Economics & Environmental Performance of Biodiesel vs. Electric Heat Pumps, R. Sweetser and R. Albrecht, 2019
2 Utility Dive, Retail electricity prices continue rapid rise, R. Walton, September 2022
3 International Energy Agency, Net Zero by 2050, May 2021