Commercial Building Electrification Guide

Jun 8, 2024DMA Engineering

Without electric heating, your building risks falling behind industry standards. Electric heating is a long-proven and highly effective approach to achieving sustainability and energy efficiency. Buildings are responsible for about 28% of global CO2 emissions, with commercial buildings contributing significantly to this total. Residential and commercial building electrification can cut these emissions by up to 70% by 2050, as more buildings transition to electric heating, cooling, and appliances.

Are you an architect or contractor working on a new building or renovation? Consider heating and cooling electrification, which allows the owner to save money, operate their building efficiently, and contribute to a sustainable future.

In this article, we’ll cover the most important considerations for commercial building electrification in terms of heating and cooling systems.

Commercial Building Electrification Guide

Commercial Building Electrification Advantages

There are many reasons to electrify a building rather than choosing other options like natural gas, oil, or propane. Consider these benefits of electrification.

1. Environmental Benefits

Electrifying a commercial building allows it to operate sustainably by avoiding a reliance on scarce natural resources. Electrification reduces carbon emissions, moving the building toward net zero energy consumption.

2. Efficiency Gains

Compared to gas, oil, and propane, electrification reduces the owner’s costs over a lifetime of operation. A 15-year study of four major U.S. zones found electrification costs were much lower than other options and helped owners reach the “deep decarbonization” goal of 75% or greater reduction in greenhouse gas emissions.

3. Improved Air Quality

Electrification substantially improves air quality by reducing ozone emissions and fine particulate matter in the air. Gas systems also must be vented to the outside air, sending their emissions out into the environment.

4. Technological Advancements

New advances in electric heat pump technology and battery storage make electrification a viable option for many types of buildings. These advancements also lend greater cost-effectiveness to electrification.

Building Electrification Cost & Considerations

Examine the capital and operating costs of installing electric HVAC in a new building or adding it to an existing building. Here are the most important considerations in terms of your capital costs and operating expenditures.

When examining the capital and operating costs of installing electric HVAC systems, it is crucial to view each building as a holistic system from the beginning.

Initially, building owners should evaluate the building envelope to identify opportunities to reduce heating and cooling loads before implementing electric heat systems.

Enhancing insulation and sealing gaps can significantly decrease the overall demand on HVAC systems, leading to lower capital expenditures on equipment. By addressing these foundational elements, owners can achieve greater energy efficiency and cost savings in the long term.

What’s more, switching from a traditional heat system to electric heat is often less capital intensive than you might think. Many buildings with air conditioning already have the electrical capacity to handle the slightly increased load of roughly about 20% to 30%, especially since heating demands typically peak when cooling needs are lower. This means only a modest upgrade to the electrical system would be needed rather than an entirely new electrical service.

Local, state, and federal rebate and incentive programs can also further reduce the capital cost of electrification.

Using Life Cycle Cost Analysis to Assess Ongoing Operating Costs

Life Cycle Cost Analysis (LCCA) is an essential method for assessing the total cost of facility ownership and is the most straightforward method for economic evaluation. DMA Engineering uses LCCA to make informed decisions that optimize both upfront costs and long-term savings, ensuring their projects’ financial viability and sustainability.

Operating Costs

Heat pumps with a high Coefficient of Performance (COP) create significant cost savings on your electricity bill. For example, heat pumps can achieve a payback period of 5-10 years and create substantial savings over their lifespan.
Although natural gas may appear less expensive on a straightforward cost comparison, electric heating with heat pumps offers a better return on investment. Electric systems reduce long-term operational costs and contribute to a more sustainable building environment. Heat pumps offer a net-zero heating and cooling solution when powered by renewable sources of electricity.

Capturing wasted heat from other systems and processes, such as wastewater treatment systems and domestic cold water systems, also decreases energy costs.

To achieve high-performing buildings, commissioning or retro-commissioning the systems and maintaining ongoing commissioning are essential to ensuring they meet long-term energy efficiency goals. Embracing a holistic view of each structure reduces operational expenses and contributes to a more sustainable and cost-effective building environment.

Commercial Building Electrification Guide: The Benefits of Heat Pumps in Electrification

The Benefits of Heat Pumps in Electrification

A heat pump is a versatile device that utilizes electricity to both heat and cool a building. They are known for high efficiency and sustainability in residential and commercial building electrification.

Heat pumps transfer existing heat instead of creating it from scratch, making them significantly more efficient than traditional electric resistance heating. Because they don’t directly generate heat; they act like a refrigerator in reverse. This movement of heat allows heat pumps to achieve a high Coefficient of Performance, or COP, of 2 or higher, meaning they deliver more heat energy than the electricity they consume. This translates to significant cost savings and a reduced carbon footprint, leading to a more sustainable operation.

A key benefit of heat pump systems is that they can recapture wasted heat from other building systems and processes, such as wastewater and domestic cold water. The recaptured heat is then repurposed for other building systems such as domestic hot water, pools, spas and even snow melt. This ability further enhances energy efficiency and aligns with the holistic approach to building performance championed by DMA Engineering.

Heat pumps provide an effective solution for achieving long-term energy savings and environmental sustainability in building electrification projects. By switching to renewable energy, the heat pumps will run on clean electricity. This dramatically reduces the building’s reliance on fossil fuels and prepares it to achieve net zero status when renewable energy is fully accessible.

Commercial Building Electrification Guide - The Path Forward to Electrification

The Path Forward to Electrification

Electric heating isn’t an academic debate or trendy new movement—staying current in today’s building industry is necessary. If you’re not already adopting electric heating, it’s time to lean into electric and keep your building up to date.

Many local, state, and federal governments are implementing policies and rolling out incentives to support this transition, recognizing its crucial role in achieving sustainability and energy efficiency.

At DMA Engineering, our mission goes beyond simply ensuring efficient buildings. We’re passionate about creating resilient structures that benefit owners, occupants, and the environment. We believe in leveraging cutting-edge energy efficiency practices, innovative design solutions, and the latest technology to reimagine spaces for a brighter future.

Let us help you uncover opportunities to optimize your building’s performance, minimize energy consumption, and save on operational costs through electrification.

Contact DMA Engineering today to get started with electric heating in your commercial building.

Explore efficiency solutions for your building by contacting DMA Engineering today.