Building electrification is a critical climate mitigation strategy for states and utilities, especially as the grid becomes cleaner through carbon-free generation. In most situations, efficient building electrification will reduce overall bills for households. However, households in parts of the country with high electricity rates could face higher bills from fuel switching. In this white paper, we discuss a few emerging solutions that can improve affordability for households and encourage electrification. Possibilities include a percentage-of-income payment program, modification of electricity rates to incentivize fuel-switching, and an income-based fixed charge proposal from California.
Download the white paper
Yim, E., and S. Subramanian. 2023. Equity and Electrification-Driven Rate Policy Options. Washington, DC: ACEEE. https://www.aceee.org/white-paper/2023/09/equity-and-electrification-driven-rate-policy-options.