Home electrification shaking up businesses

From air-to-water heat pumps, convection stoves to cars charging in the garage, more and more people are taking steps to electrify their homes.

The process is changing industries as some companies are trying to find a niche because electrification projects are in high demand. Additionally, the practice is a priority for advocates who want to address climate change.

Keefer Rader, the owner of Outlaw Mechanical, said in the last 18 to 24 months there has been a significant increase in the number of customers who are seeking to electrify their homes and transition off of natural gas. He predicts that in the next five years that will be the vast majority of his business.

That’s why Rader said he wanted his company to embrace new technologies and not shy away from them.

“This is something that we’ve been fighting in New Mexico for a long time. People trying to keep up with the technology,” he said. “The vast majority of all of (installers), me included, we’re cavemen. And new, shiny things are kind of scary. And we try to set ourselves apart from the pack by keeping up with technology.”

Athena and Christos Christodoulou spent years completely electrifying their home in the Northeast Heights. They installed their first solar panel in 2009, and today they have 11 solar panels, as well as air-to-water heat pumps, which transfer heat from the outside to water which is then used for underfloor heating.

“We’re both engineers and we’re both researchers. So we like to try different things,” she said. “We’ll be your early adopters, and we’ll work things out. So it’s easy for others.”

Their systems produce between roughly 350 and 600 kilowatt hours of power per month, Athena said.

Since completing the transition, she said the home is more comfortable in both the summer and winter in terms of temperature. In addition to the underfloor heating and cooling system, there are mini splits throughout the Christodoulou home.

There were several motivations for making the switch.

“Comfort certainly was part of it,” Athena said. “I’m also a environmental engineer and interested in energy and climate.”

She said the hardest part of the transition was finding an installer for the radiant floor heating.

“There were no installers, but that’s changing now,” she said. “Electrifying everything from transportation, to cooking, to heating is a challenge. Because ... you’re stepping on businesses.”

For example, she said electric cars don’t require the same type of maintenance as gasoline-powered cars. And more homebuilders are more familiar with gas boilers than electric systems.

“So what can policymakers do? Make sure the schools are there to teach the workforce and let others know that (electrification) is an option for the future? That’s key,” Athena said.

In the southern Foothills, Dylan Connelly, an engineer, electrified his family’s home in 2019.

He was a logical person to electrify his home. He’s an engineer who specializes in designing completely electric buildings.

He got rid of the swamp coolers and installed heat pumps and solar panels. He said he has a $0 energy bills each month.

The biggest challenges: cost and personnel. He said it was difficult to find installers.

In addition to his monthly bill, he said the best part of transitioning away from gas is peace of mind.

“I don’t have any gas in the house,” he said. “So that means that I’m not constantly afraid of carbon monoxide gas leaks.”

Instigating transition

Albuquerque’s first Earth Day Festival is April 21, and electrification is going to be a focus of the event.

In addition to having an exhibit of different types of electric vehicles and bicycles, there will be a panel discussion on residential electrification. Topics that will be addressed include how to capture tax credits and rebates from the Inflation Reduction Act, New Mexico state and electricity providers.

Athena plans to be one of the homeowners who will be on hand to answer questions about the process. Nusenda Credit Union officials will be at the event to discuss solar and energy-efficient loans.

Last month, the U.S. Department of Energy announced that New Mexico was the first state in the country to apply for funding from two home energy rebate programs.

The agency said in a news release that New Mexico residents will be able to use rebates to save up to $14,000 on appliances, heat pumps, insulation and other energy-efficiency and electrification improvements. More than half the rebates will go to low-income households. New Mexico applied for nearly $88 million of the $8.7 billion in rebates that were included in the Inflation Reduction Act, which was signed into law in 2022.

“The home efficiency rebates offer enormous potential to uplift low-income families while also helping to kickstart New Mexico’s renewable energy economy,” Rebecca Stair, director of the New Mexico State Energy Office, said in a statement. “Our team recognized this opportunity, and immediately plunged their hearts into the effort to apply for these programs. I am proud to know that New Mexico is the first state to complete the first step in bringing these innovative, groundbreaking grant programs to its citizens.”

In addition to the federal rebates included in the Inflation Reduction Act, New Mexico offers its own incentives. Sidney Hill, a spokesman for the New Mexico Energy Minerals and Natural Resources Department, said the state has two programs to encourage home electrifying: Sustainable Building Tax Credit and Energy Conserving Products Tax Credit.

The programs provide tax credits for either home renovations or purchasing energy efficient products.

Eric Chavez, a spokesman for Public Service Company of New Mexico, said the utility offers several rebates for electrification projects, which can be found at checkwithpnm.com or pnm.com/ev.

Rader said one of the biggest barriers to residential electrification is cost.

“The problem is the equipment cost a lot of times is prohibitive of getting people to do it,” Rader said. “It’s expensive. It’s new technology and the market is not saturated with it.”