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Progress and Barriers Towards Home Electrification in Palo Alto

Ella Norman

Local climate organizations have successfully pushed for programs that make electrification of homes easier and cheaper, and are looking to tackle barriers that make electrification out of reach for low-income residents.


Electric HVAC system in Palo Alto. 350 Palo Alto


During his recent home remodel, Palo Alto resident Ernie Lee made the decision to go electric. Ernie’s family is one of many in Palo Alto who are electrifying their home by swapping gas-based appliances for electric ones. Ernie explained that “there’s a certain simplicity with having everything electric.” Other residents cite a lower carbon footprint, lower utility bills, or cleaner air as reasons for electrifying their homes.


Building momentum for home electrification in Palo Alto


Palo Alto has been a nation-wide leader in electrification, becoming one of the first cities to have a carbon-neutral electric grid in 2013. Palo Alto was also one of the first cities in the U.S. to start managing its own electric utility, which allows the city to exceed PG&E in the percentage of electricity that is generated from renewable energy.


Still, gas powered cars and buildings rely on fossil fuels to run. As of 2020, buildings accounted for 35% of greenhouse gas emissions in Palo Alto, second to transportation, which accounts for 62%. Within buildings, residential appliances and heating systems account for over half of the emissions.


In order for Palo Alto to meet its decarbonization goals, specifically an 80% reduction from 1990 greenhouse gas emissions by 2030, climate action organizations have been pushing for policies that will promote electrification, allowing appliances and heating systems in buildings to draw on the carbon-neutral grid instead of burning gas. Notably, 350 Palo Alto, a local chapter of the nationwide climate justice organization, has spearheaded the Switch to Electric campaign to promote electrification within the city of Palo Alto.


According to Julia Zeitlin, a high school student and member of 350 Palo Alto, electrification is needed to “start converting our homes to be more climate friendly buildings, but also safer, healthier environments for the families within them.” Recent studies suggest that in addition to contributing to greenhouse gas emissions, gas stoves are linked to health concerns, such as increased risk for asthma.


As part of the Switch to Electric campaign, 350 Palo Alto worked with the Palo Alto City Council to pass a heat pump installation assistance program. 90% of homes in Palo Alto currently have gas powered water heaters, making this retrofit one of the most essential changes to advocate for, explained Julia. Electric heat pumps work by transferring heat from the outside ground and air using electricity, whereas traditional gas water heaters burn natural gas or propane to generate heat.


In October 2022, the Palo Alto City Council approved the electric water heater program, with a goal of getting 1,000 residents to sign up to replace their gas-powered water heaters. The new program gives residents the option of having a city contractor update the water heating system in their home, rather than having to go through a third party to handle the installation.


The program also seeks to make electric water heaters more affordable, building on existing rebate options and adding two additional financing options. The first option is to pay $2,700 upfront, and the second is to pay $1,500 upfront followed by monthly payments set to the amount of pre-heat pump utility bills. Because heat pumps have much lower utility bills associated with them, these monthly payments will be going towards paying off the heat pump installation.


“There have been a lot of sign-ups as of October,” stated Julia. In the next few months, 350 Palo Alto members plan to go door-to-door to continue to gather sign-ups for the electric heat pump installation program, highlighting to neighbors how the city is making the process easier.


Electric heat pump water heater in Palo Alto. 350 Palo Alto


Confronting the accessibility challenges of electrification


Although Palo Alto’s heat pump program makes electrification more accessible and affordable for residents, financial and logistical barriers remain, especially for low-income residents. The upfront cost of purchasing a new appliance, specifically an electric one, may be out of reach for many families.


According to Julia, although “the city is trying to help provide easier access to rebates, sometimes that is not enough.” The current electric heat pump program is seen as an initial step towards electrification in Palo Alto, focused on single family homes and residents who won’t be as financially burdened by purchasing an electric heat pump.


Organizations like 350 Palo Alto must balance the urgency to act in the climate crisis with making electrification projects accessible to all. “If we don’t do anything about climate change then there will be incredibly disproportionate impacts on lower income communities, which we’re already seeing, but if we do make these changes and leave out marginalized groups then that’s also a problem. I think balancing that is really important,” stated Julia.


Julia and many others hope that funding from the Inflation Reduction Act, almost $400 billion over the next ten years to lower carbon emissions, can be used to bridge the financial gap and remove the financial burden of electrification from low and middle income families.


Setting the stage for nation-wide electrification struggles


Efforts to accelerate home electrification extend beyond Palo Alto. State governments in New York and California are looking to ban new gas stoves. The Bay Area Air Quality District is voting this March on whether to ban new gas-powered furnaces and water heaters.


Challenges regarding equitable access to electrification are likely to arise across the country as cities and states work towards phasing out gas-powered appliances. Palo Alto is unique in that it is one of the wealthiest cities in the country with a median income of $174,003, making it realistic to rely on many households to self-fund the electrification process. However, in other cities that are, on average, lower income, it may be even less feasible to expect electrification to occur if households are expected to front the cost.


Wealth inequality both within and between cities creates challenges for implementing expensive decarbonization projects, especially when the financial burden falls on individual households. In order to be most effective, efforts to implement climate change solutions must address wealth inequality and work to make programs available to all.


Still, other cities can look to Palo Alto as an example for how community organizers are playing a key role in holding their local governments accountable in meeting sustainability goals. Regarding Palo Alto’s decarbonization goals, Julia shared that “it doesn’t really mean much until we get there. Having people within the community take that initiative and try to hold their cities accountable is a really important step.”


Hopefully, as the City of Palo Alto moves forward with its decarbonization initiatives, more families like Ernie’s are able to electrify their homes and take in all of the benefits that come with it.



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Ella Norman is a junior at Stanford University studying Human Biology with a concentration in Social Determinants of Health and Environmental Justice. She is passionate about the intersections of health and Environmental Justice and achieving a Just Transition to a green economy.

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