LEADING THE STATE, HOLLAND UNVEILS BENEFICIAL ELECTRIFICATION PROGRAM

Across the state of Michigan, utilities have focused diligently on energy efficiency for about 12 years. These programs – called energy waste reduction (EWR) programs, or just rebate programs – are what caused your utility to offer you money to upgrade your stuff! I have been working with the Holland BPW (in Holland, Michigan) for almost 4 years, and they continue to amaze me with their forward-thinking clean energy programs!

Energy Waste Reduction

When these EWR programs began, they opened an important chapter for sustainability and financial savings in Michigan. According to the Michigan Public Service Commission’s website: “Since 2009, Michigan’s utility providers have helped customers save almost $6 billion in electric costs and close to $2 billion in natural gas costs. The Clean and Renewable Energy and Energy Waste Reduction [EWR] Act maintains the energy efficiency goals established with the energy optimization standards developed in 2008 under Act 295.”

But the times they are a-changin’. Act 295 has expired for municipal utilities, and they are no longer required to reach EWR goals.

The spot of sunshine? Many utilities are moving forward voluntarily, Holland included. To my knowledge, Holland BPW is the first to go one step further by implementing a beneficial electrification program.

Beneficial Electrification

For a primer on electrification, see our blog post here. In short: we need to do more than energy waste reduction. We need programs that promote the use of electricity instead of natural gas.

Whereas energy efficiency rebates incentivize (pay people) to buy more energy-efficient equipment – like water heaters, furnaces, air conditioners, light bulbs, showerheads, etc. – beneficial electrification rebates incentivize a particular kind of fuel, electricity.

You may be familiar with the concept that we need to stop burning natural gas to avoid the worst effects of climate change. One area where we need to make this happen is with the two biggest users of natural gas in Michigan homes: water heaters and furnaces.

In the past, utilities were disallowed from incentivizing so-called “fuel switching.” Electric utilities could only provide money for folks to use more efficient electrical appliances, but not to switch from gas appliances to electric appliances. Since this legislation has expired, Holland is now allowed to pursue a more robust plan to move us towards our clean energy future.

For example, previously Holland BPW could pay you to replace your inefficient electric water heater with a more efficient electric water heater. Now they can pay you to replace your gas water heater with a (high-efficiency heat pump) electric water heater. Giving us: fuel switching. ✨

In addition to providing rebates for heat pumps and heat pump water heaters, Holland is incentivizing their customers to make the switch from gasoline-powered lawn equipment, and even helping them to upgrade their electric panels. In this way they are able to help us move away from fossil fuels in all areas where they are used.

The Upshot

Here’s the really exciting part: if you have been feeling hopeless, like there is nothing significant you can do to make a big personal impact on climate change, here is your chance! Combined with the Inflation Reduction Act funds, you could upgrade to an all-electric home for very little out of pocket, or possibly even $0.

Courtesy of @NicoleKelner via Twitter.