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What is building electrification?

Building electrification is about making the shift away from fossil-fuels and using low-carbon electricity for space heating, hot water and cooking. Instead of using natural gas or propane to run appliances like furnaces, kitchen stoves, washers and dryers, everything is electric.

Why building electrification?

Buildings in British Columbia (BC) emit approximately 6.9 million tonnes of GHG emissions on an annual basis, representing approximately 12% of provincial greenhouse gas (GHG) emissions. The majority of these emissions are a result of burning fossil fuels to heat our homes and buildings. Buildings are the third largest contributor to provincial GHG emissions exceeded only by the transportation and oil/gas sectors. The building sector is regulated entirely by provincial and local governments, making it one of the most straightforward opportunities for a rapid transition to a low-carbon market sector.

Building electrification is recognized by all levels of government as acritical strategy for decarbonizing BC's building sector. The availability of high-efficiency, electric technologies for most building space and water heating applications, along with the abundant supply of clean, renewable electricity in BC creates the perfect environment for deep emissions reductions in buildings. Building electrification also provides improved year-round comfort and indoor air quality for occupants.  

The Building Electrification Road Map is a tool through which the necessary set of tactical actions for building electrification have been identified, including the right sequence and steps to ensure that BC’s building sector reaps the benefits of a clear and coordinated market transformation for both the existing building and new construction sectors.

Are fully electric buildings viable today?

Yes. Building electrification is not a new concept, in fact, many communities have always been electric. Electric equipment is available and compatible with all building types, including residential, office, restaurants and many other commercial buildings.

Full electrification is especially important in new construction because it reduces operational carbon and ensures that fewer expensive retrofits will be needed to achieve future climate targets for buildings. A ZEBx study on multi-unit residential buildings demonstrated that all-electric buildings can be constructed for less than the average cost of similar code-minimum buildings. Demand for electric buildings is growing due to strong climate action targets and goals, municipal adoption of low carbon pathways in the Energy Step Code, and the inherent advantages of electrification (eg. Climate resilience, improved comfort, better indoor air quality, etc). in California, 50 cities and counties have established all-electric mandates for new building construction and the California Energy Commission approved a new building code to include highly efficient electric heat pumps as a baseline technology which will come into effect in January 2023.

In existing buildings, there are many straightforward electrification retrofit options (eg. roof-top and make-up air units for apartment and commercial buildings) as well as more complex retrofits which require engineering and sophisticated controls (eg. Heat recovery chillers). Buildings connected to more complex heating systems (eg. district energy and steam systems) are likely to take longer to electrify as the technology continues to evolve.

Are there examples of electric buildings in British Columbia?

Yes. There are many examples of fully electric residential, commercial, and institutional buildings in BC. In addition to the examples below there are thousands of existing homes using heat pumps in BC. Heat pump adoption is increasing in BC with an estimated 6% of existing homes in BC using a heat pump as their main heating source (BC Hydro’s 2030 Residential End-Use Survey). BC Hydro and CleanBC have issued over 6,000 heat pump rebates over the past 3 years.

Residential - Multi-unit:

Residential - Single-family:

Commercial:

Office Tower Domestic Hot Water (partial electrification)

What sort of technology is involved with building electrification?

There are many technologies available to support building electrification (e.g., air source heat pumps, ground source heat pumps, electric hot water heating systems, heat recovery ventilators, induction stoves, and even baseboards for high-efficiency homes), providing numerous options to building owners to consider in the shift to building electrification. To ensure maximum efficiency in electrification of heating, cooling and ventilation systems, investments in high efficiency building envelopes (insulation, windows, doors, air sealing) should also be considered (especially for new construction). Some of these technologies and key approaches to electrification are summarized below:

Heat Pumps

One of the main technologies is heat pumps. A heat pump is an efficient form of heating and cooling powered by electricity that moves heat from one place to another. In the winter, it pulls thermal energy from an outside source and moves it indoors to heat your building. In the summer, it removes thermal energy from the building, thus cooling the space. There are 3 types of heat pump sources - air, water and ground (geothermal). The following are examples of this technology:

   • Air-source heat pumps (air-to-air, air-to-water, ductless mini-split, variable refrigerant flow (VRF))

   • Water-source heat pumps (ground-source/geothermal, sewage heat recovery, VRF)

   • Heat pump domestic water heaters

Heat pumps are much more efficient than the equipment they replace. Air-source heat pumps or heat pump water heaters are two to five times more energy-efficient than their natural-gas counterparts. For space and water heating purposes, an electric heat pump's performance is typically measured as coefficient of performance (COP) - the ratio between the amount of electric energy needed to operate the compressor, compared to the amount of useable heat energy transferred. A typical COP of a heat pump for building space conditioning is around 3. Cold climate heat pumps are also available.

Ground-source heat pumps use the earth or ground water as a heat source or sink. In colder climate regions, ground-source systems can operate more efficiently because they take advantage of warmer and more stable ground temperatures. Typical water temperatures entering the ground-source heat pump are generally above 0°C, yielding a COP of around 3 for most systems during the coldest winter months. Installation of these systems is more complicated than their air-source counterparts due to land excavation requirements which makes ground-source systems more expensive, however, the additional cost can be recaptured in energy savings due to the increased efficiency.

Heat Recovery

Heat capture and recovery also plays an important role in building electrification. Like heat pumps, they facilitate the transfer of thermal energy from one place to another. However, a main difference is that heat recovery systems extract heat from sources of energy that would otherwise be considered waste heat (e.g., heated air vented out of a building for cooling and/or air quality purposes, chillers, industrial processes that require extremely hot water or steam, hot water drains and sewage).

Electric Resistance Heating

More commonly used in electric baseboards and water heaters. Electric resistance heating is best used as a back-up space heating system but can be a primary space heating source in a very efficient building (eg. Passive house). Electric water heaters are very common and are relatively inexpensive to purchase and install. Electric resistance heating has a COP of 1 which makes it less efficient than a heat pump and therefore a more expensive system to operate.

Home Appliances

Full electrification of a building includes replacing gas-powered home appliances as well. Ovens and burners can be replaced with electric ranges and induction cooktops, while gas-powered clothes dryers can be replaced with electric counterparts (there are now electric heat pump clothes dryers that do not require ventilation). For more information on electric kitchens, visit the Kitchen Electrification Group resource directory.

Whole Building Approach

To maximize energy efficiency, looking at the building as a system is a way to achieve better building performance and reduce operating costs. The whole building approach looks at the building envelope (eg. windows, doors, insulation), lighting systems, heating and cooling requirements and local climate conditions to assess opportunities within a building. When using the whole building approach, energy load requirements are reduced, and the sizing of mechanical systems is optimized (reducing costs). For example, upgrading the building envelope of a home - sealing air leaks and adding energy efficient windows - allows a heat pump to be sized-correctly and work more efficiently within the home. This results in greater energy savings and comfort.

Liken the whole building approach to visiting the doctor for an annual check-up. A doctor doesn’t simply look at your blood pressure and send you on your way, they instead review your health history and perform a series of tests to understand what is going on with your entire body as an interactive system. The same goes for buildings, reviewing individual building components does not provide the full spectrum of how the building works as a whole.

Overall, the whole building approach can be used for long-term capital planning and helps building owners to prioritize upgrades within their budgets and availability of incentives.

Integrated grid technologies

Integrated or “smart” grid technologies allow for two-way communication to optimize energy conservation. Energy storage in batteries will play an important part in electrification as it has the potential to make more efficient use of renewable power sources and reduce the demand on the current electricity grid. An NRCan pilot project in Nova Scotia is seeking to study how to enable electric vehicles to store and discharge electricity during peak times to ease pressure on the grid. Other emerging technologies like smart lighting controls and smart thermostats are currently being studied in the US and Canada to advance demand response and grid optimization.

Do heat pumps work in cold weather?

Yes, and the technology continues to improve.

According to Clean BC’s Better Homes website, heat pumps are increasing in popularity in colder parts of British Columbia. In these regions, cold climate air-to-air heat pumps or ground-source heat pumps are recommended.

Cold climate heat pumps are built to work efficiently in conditions down to -25°C, with some systems maintaining an efficiency of over 200% at -18°C. Since the air outside will always contain some heat, a heat pump can supply heat to a house even on cold winter days. In fact, according to this Clean Energy Fund report, air at -18°C contains about 85% of the heat it contained at 21°C. In most climate zones in BC, especially for the Lower Mainland, Vancouver Island and Coastal regions, there would be no need to install a back- up heating system if the right heat pump is selected.  

Ground-source heat pumps can operate efficiently in colder climate regions because they take advantage of warmer and more stable ground temperatures. (For additional details, see FAQ question "Are there examples of electric buildings in British Columbia?").

Many modern high efficiency heat pump systems come with an integrated electric resistance heating system that functions as a back-up system at low temperatures. For mini-split heat pumps installed in homes without ductwork, electric baseboards or high-quality electric fireplaces are another viable back-up option.

A dual-fuel system is another potential solution, whereby a heat pump provides 70-90% of the heating needs for a year, while a back-up gas system would be utilized on the coldest days. This type of system can reduce the size of the heat pump, and therefore reduce costs, while ensuring comfort for building occupants, but it comes with the price of additional GHG emissions.

What are the advantages of electric buildings?

Reduced GHG emissions - One of the best ways we can reduce our GHG emissions in BC is to replace technology that uses fossil fuels with those that use clean electricity. Electricity in BC is generated from 95% renewable energy sources, primarily with water.

Energy efficiency - Heat pumps can be 2-5 times more efficient than natural gas heating equipment and conventional electric baseboards and performance continues to improve. (For more information on heat pumps, see FAQ question above)  

Improved safety - Electrification removes safety concerns associated with incomplete combustion of natural gas which results in carbon monoxide (CO), an odourless and poisonous gas.

Improved public health – Electrification eliminates the indoor air pollution health threats associated with burning fossil fuels or wood in a building. (For more information on health benefits, see FAQ question below)

Improved access to cooling - With the average outdoor temperature rising, the need for cooling is becoming increasingly critical. The Province of BC experienced record-breaking temperatures in over 100 communities in June 2021. This severe heat wave lasted several days and resulted in 815 sudden deaths, 570 of which were deemed to be heat related. In addition, traditional cooling methods for buildings, such as opening windows, may no longer be viable if outdoor air pollution from poor air quality events (eg. fires, smog) continues to be a problem.

Economic stimulus – A shift to electrification is anticipated to lead to additional jobs and economic growth. (For more on the economic impact of electrification, see FAQ question below)

What are the health benefits of building electrification?

Electrification eliminates the indoor air pollution health threats associated with burning fossil fuels or wood in a building. Incomplete combustion of fossil fuels or wood results in by-products  such as fine particulate matter, carbon monoxide and nitrogen oxides. Wood heaters and woodstoves, gas and oil furnaces, gas stoves, and fireplaces can all contribute to indoor air pollution.

Indoor air quality is important because people spend up to 90% of their time indoors – at home, school and work. Poor indoor air quality may cause headaches, tiredness, coughing, sneezing, sinus congestion, shortness of breath, dizziness and nausea. It can irritate the skin, eyes, nose or throat. Allergy or asthma symptoms could get worse. Natural gas appliances emit a wide range of air pollutants, such as carbon monoxide (CO), nitrogen oxides (NOx, including nitrogen dioxide (NO2)), particulate matter (PM), and formaldehyde, which have been linked to various acute and chronic health effects, including respiratory illness, cardiovascular disease, and premature death1.

Just as indoor air quality is important, so is outdoor air quality. BC has an abundant supply of clean, renewable electricity. Moving away from fossil fuels through building electrification, not only eliminates indoor air pollution from appliances, it also eliminates the outdoor pollution and climate impacts associated with natural gas fracking, transporting, and burning fossil fuels and wood. According to Metro Vancouver’s Clean Air Plan, natural gas use in buildings contributes approximately 25% of greenhouse gas and approximately 10% of nitrogen oxides emissions in the region.

In BC, average temperatures are increasing, variable and extreme weather (such as the June 2021 province-wide heat wave) is becoming more frequent, and sea levels are rising. These broad changes will increase the frequency and intensity of a number of climate-related hazards (such as extreme heat and poor air quality) which are associated with physical health, mental health, and wellbeing impacts in our communities. According to Vancouver Coastal Health, these impacts disproportionately affect certain populations, including children, seniors, people with pre-existing health conditions or disabilities, Indigenous communities, systemically marginalized groups and people who are underhoused or resource deprived. These hazards also impact the health system, including our facilities and ability to deliver health care services. Building electrification and switching to clean, renewable electricity will help to mitigate the impacts of climate change while the addition of heat pumps will provide the necessary cooling to adapt to a changing climate.

How does building electrification fit into local, provincial, and federal climate goals?

Electricity in BC is currently derived from 95% renewable sources. In July 2021 the Provincial Government announced it intends to move a 100% clean standard for BC’s electricity. Clean electricity enables building electrification to contribute to the advancement of local, provincial and federal government climate mitigation objectives, as well as reduction targets made by many BC-based businesses. Electrification is recognized by all levels of government as a critical strategy for decarbonizing BC’s building sector. Local governments (such as City of Vancouver) acknowledge building electrification in climate action plans as a key strategy to achieve significant GHG emissions reductions in response to Climate Emergency declarations.

Building electrification supports the Province’s CleanBC sectoral target to reduce emissions from buildings and communities by 59-64% below 2007 levels by 2030 (2021) and the Federal Government’s Net-Zero Emissions Accountability Act (2021) targets to achieve net zero emissions by 2050. If nearly all buildings in BC were to electrify by 2030, GHG emissions from buildings would drop from 6.9 Mt/year to less than one MtCO2e/year, a reduction that far surpasses the provincially set sectoral targets for buildings. This figure will drop even more as BC’s electricity system moves to the 100% clean standard.

Is it more expensive to run buildings on 100% electricity?

In short, it depends. For new buildings, full electrification is typically the cheaper option because builders can avoid the costs of the main gas hookup, piping, and exhaust flue(s). In residential applications where cooling is desired, installation of a heat pump will usually cost less than a separate air conditioner and gas furnace. In terms of operating costs, improved energy efficiency can balance out the low cost of natural gas. The federal government has announced carbon tax escalations reaching $170/tonne by 2030 and BC announced plans to meet or exceed the federal carbon tax starting in 2023. With the carbon tax increases, natural gas and other fossil fuel prices will become more expensive to use.

For existing buildings, it can be more complicated. While building electrification improves energy efficiency, characteristics of different building types such as size, location, age, and efficiency can have a dramatic impact on the cost and feasibility of different electrification solutions. Capital costs to replace existing equipment with electrification solutions are often higher than their natural gas counterparts, however, many incentives are offered under municipal, provincial and federal programs such as CleanBC Better Buildings and Canada Greener Homes. In some cases, electrical service upgrades may be required, which come at an additional cost.

BC’s main electricity provider, BC Hydro, is mandated to provide low-cost, reliable electricity in the province. Part of the Phase 2 Comprehensive Review of BC Hydro includes recommendations on keeping electricity rates affordable in the province, which makes electrification a good long-term solution.

It is important to note that building electrification should not be considered in isolation of other important strategies to increase a building's efficiency and optimization. Good building design that ensures longevity, efficiency and other important outcomes remain of central importance.

What about the GHG emissions from refrigerants used in heat pumps?

A refrigerant is a liquid or gaseous compound used to absorb heat and transfer it outside. It is a technology that is used in refrigerators, air conditioners, heat pumps and more. Without refrigerants, air conditioning, refrigeration or freezing technology wouldn’t be possible.  

In 1987, the Montreal Protocol banned refrigerants with a high Ozone Depletion Potential (ODP) but did not address the Global Warming Potential (GWP) of the gases that would replace them. Later in 2016, the Kigali Amendment to the Protocol set an agenda to phase out high GWP refrigerant gases, but many of these refrigerants are still being used. GWP is calculated in CO2 equivalent and is referred to as GHG emissions.

Alternative refrigerants with lower GWP are appearing on the market, driven by regulation changes in different regions of the world. Several of these alternatives are naturally-occurring (e.g. Ammonia (R717), CO2 (R744), and Propane (R290)) and have negligible GWP levels compared with many synthetic counterparts.

Proper installation and maintenance of heat pumps and other equipment using refrigerants, plus proper recycling of refrigerants at end of life of equipment useful life will help to avoid harmful refrigerant leaks. A great resource Refrigerants and Environmental Impacts: A Best Practices Guide was developed by Integral Group on this topic.

Are other places moving toward building electrification?

Many jurisdictions across the country and the globe have set zero emissions building goals, and their plans and strategies include a strong push towards electrification. For example, according to Sierra Club, 50 cities in California are encouraging or requiring all-electric new construction and the California Energy Commission approved a new building code to include highly efficient electric heat pumps as a baseline technology which will come into effect in January 2023.

Overseas, Denmark has committed to phase out fossil fuels for heating by 2050. The Netherlands aims to convert 1.5 million homes—more than 20 percent of its housing stock—to fully electric by 2030, leading the way with its own municipal buildings and public housing. Ireland has ambitious plans to achieve net-zero emissions in its building sector by 2050 including 600,000 high efficiency electric heat pumps installed by 2030 (400,000 in existing homes), according to this NRDC article.

Are rural and remote communities ready for electrification?

Rural parts of BC experience unique challenges in supply due to a lack of local warehousing and sales force. Availability of equipment specialists trained in the design, installation, and maintenance of high-efficiency electric equipment is low in comparison to densely populated areas. While these issues can make it more difficult for people and businesses in rural and remote communities to purchase, install and have regular maintenance and repairs completed for some technologies and brands, these closer-knit communities have increased opportunities to rapidly build awareness and train local contractors, home builders and distributors of technologies. Similarly, close relationships between contractors and builders can also provide opportunities for accelerated training and market influence.

Several rural and remote Indigenous communities in BC have initiated residential heat pump programs, including several community-wide home retrofits. Projects like the one in Heiltsuk Nation also supported the local economy by providing training to local community members for on-going equipment maintenance. Remote communities, who rely primarily on oil, propane and diesel for heating, experienced significant cost savings to heat their homes and received the added benefit of cooling. Many projects utilized a combination of local contractors along with expertise from larger city-centres to achieve enhanced comfort and better air quality.

What are the economic and labour impacts of building electrification?

Through the transition to electric buildings, many new jobs will be created. A recent study on the job impact of market-wide building electrification in the State of California concluded that it will result in an average of 64,200-104,000 jobs annually by 2045, after accounting for losses in the gas sector.

An economic impact study conducted for the City of Vancouver and the Province estimated that the future BC Retrofit Building Code would lead to the creation of more than 4,400 direct jobs and nearly 6,000 indirect jobs between 2019 and 2039 (net impact, full-time equivalent jobs) and contribute more than $8.3 billion to the province's direct GDP. While this study did not focus directly on building electrification, another such study would be of value. Heat pumps and other building electrification technologies will play a large role in the retrofitting of existing buildings in order to meet provincial climate targets.  

For new construction, a study commissioned by the Vancouver Economic Commission estimates that Vancouver and BC's zero emissions and net-zero energy ready building policies are stimulating a $3.3 billion market for high-performance buildings products and technologies in Metro Vancouver alone. The report specifically highlights the economic potential of mechanical equipment such as heat pumps and heat recovery ventilators. It estimates that the installation of this equipment will support 770 jobs on average each year from 2019-2032 throughout Metro Vancouver. It also points out that the manufacturing of this equipment holds considerable future potential for job growth.

As identified by the provincial CleanBC plan, every dollar invested in energy efficiency generates up to four times its value in economic growth. The green building industry now employs approximately 32,000 British Columbians from all areas of the province in jobs ranging from architecture to manufacturing to installation.

Can the grid handle a widespread shift to fully electric buildings?

BC Hydro has a surplus of clean electricity that is expected to last until at least 2029. This represents a unique opportunity to rapidly increase electrification in BC over the next decade.

While there is an electricity surplus in the Province, electrification adds pressure at the substation level. An important consideration for this is the potential to integrate building electrification with distributed generation and localized capacity-based demand-side management solutions. This will help to reduce potential grid pressures experienced as a result of increased demand for clean electricity. Capacity-based solutions may include building battery storage and other connectable devices and building energy management systems that can support grid management and flexible loads. Measures such as these will increase overall grid resiliency and smooth out the amount of power generated to meet peak demand. More work will need to be undertaken, though, to increase our understanding of what upgrades will need to be made to local distribution systems and standards developed to accommodate this kind of dynamic smart grid approach.

Overall, improving building energy efficiency performance will continue to play an important role in helping to manage the rate of electricity demand growth over the coming years. The high efficiency nature of heat pump technologies means that every gigajoule of fossil-fuel based space or water heating energy that is replaced by clean electricity will need only a quarter to a half as many electrically supplied gigajoules. In a similar vein, the gradual replacement of electric resistance equipment with heat pumps will significantly reduce the energy demand of existing electrically heated homes, freeing up electricity for new load sources. Ongoing efforts to continually improve the minimum energy performance requirements of heat pumps and other technologies will therefore continue to be important for governments, utilities and industry to support (source: Building Electrification Road Map).

What are justice and equity considerations of building electrification?

Justice and equity relate to the concept of “fairness” and how people are treated. Lower-income communities typically contribute less to climate change and are more likely to be impacted by it. In addition, renters have little control over the building systems where they live and are more likely to experience energy poverty - a larger percentage of their income going to energy costs. Electrification can support these communities through modernizing appliances, increasing access to cooling and improving indoor air quality.

Areas of risk that need to be carefully considered and managed when planning for broad-scale building electrification are the effects on operating costs (ensuring that energy bills do not increase significantly) and ensuring that rent does not increase as a result of capital upgrades. These challenges are identified in the BC Building Electrification Road Map which includes a recommendation to undertake a low-income/social housing electrification plan to identify the specific issues tied to these communities and establish a set of recommendations to ensure equitable cost and benefits of electrification going forward.

When building electrification is combined with envelope upgrades to improve air tightness, less energy is required for heating and cooling, which results in lower operating costs. BC electricity rates are amongst the lowest in North America, and unlike natural gas, do not incur a carbon tax - which is anticipated to continue escalating. Early electrification for lower income populations will ensure that they are not left shouldering a larger share of the costs to operate and maintain the distribution systems as wealthier populations drop their gas connections.

While investment in electrification can be a barrier to adoption, the Province of BC and its utility partners have and continue to develop rebate programs to provide relief for lower-income and social-housing customers that would like to lower their carbon footprint and improve their homes’ comfort and resilience to extreme heat and poor air quality events (such as smoke from wildfires)

In addition to existing programs to improve the affordability of electric options, Phase 2 of the Province’s Comprehensive Review of BC Hydro includes recommendations to having BC Hydro consider providing more support for lower-income BC Hydro customers. Recommended supports include incentives, exploring optional rates for customers to adopt electric heat pumps, and facilitating custom adoption of controllable energy devices that provide BC Hydro the ability to offer incentives in return for helping to manage a customer’s electricity use.