The Economics of Electrifying Buildings: Residential New Construction

This report examines the economic and climate impacts of building all-electric single-family new construction — homes that rely on electric appliances for space and water heating, cooking, and clothes drying. RMI’s analysis shows that all-electric residential new construction is more cost-effective to build and operate than fossil fuel homes. Findings of this study provide valuable insights to state and local policymakers who seek analysis for the economic and environmental impacts of electrification for their specific region. It also supports policies that incentivize or require all-electric residential new construction and eliminate gas infrastructure subsidies for new buildings and could be used as an economical and environmental justification for home buyers to look for all-electric new construction due to their lower operating costs.