The Sacramento Municipal Utility District (SMUD), an electric-only utility, is implementing a portfolio of programs aimed at zeroing out its carbon footprint by eliminating natural gas from buildings in its territory. SMUD is the first U.S. utility to shift measurement of energy efficiency from avoided kilowatt-hours (kWh) to avoided carbon, which the utility refers to as “electrification efficiency.”
SMUD’s current program strategy began in June of 2018 with the rollout of electrification programs aimed at residential space and water heating as well as cooking. When converting gas equipment to electric in existing homes, the incentives are set at $3,000 for water heating, $4,500 for space heating, and $500 for induction cooking. Customers can also receive up to an additional $2,500 incentive for
panel and wiring upgrades necessary to convert the home to all electric. When electric equipment is replaced with new, more-efficient electric devices, incentives change to $1,000, $2,000, and $100, respectively. SMUD also has rebates for new all-electric homes ($5,000 for single-family homes, $1,500 for multifamily). For new single-family homes, SMUD also has incentives for builders who are not yet
ready to go all electric: they provide smaller incentives for a new home that is all-electric ready, meaning it has the electric service, breakers, wiring, and plugs required for easy conversion to all electric. For existing multifamily buildings, the maximum incentive is $3,000 per apartment plus an additional 25% of the incentive if the property is low-income qualified. As of August 2019, all SMUD
low-income programs have incorporated electrification into their offerings. In January of 2020, SMUD introduced commercial building electrification programs, which include incentives for equipment replacement and new construction.