What’s the Cost of Converting a Home from Natural Gas to All-Electric?

In recent columns, I have promoted the idea of eliminating natural gas and converting one’s home to all-electric, using heat pumps for heating & cooling and installing a heat pump water heater. I have also promoted induction cooktops as an alternative to gas or standard electric cooktops.

One reader asked me to provide information on the cost of making the conversion to all-electric, so I have done some research and can also speak from personal experience.

First, I asked Bill Lucas-Brown of Helio Home Inc., who installed the heat pump mini-split system at Golden Real Estate’s former office on South Golden Road as well as in our storefront in downtown Golden.

I asked Bill for a rough estimate of the cost of making a typical 2,000 sq. ft. home all-electric, and he responded with the following numbers and comments.

Note that rebates and tax incentives are available from the state, feds, utilities, and local municipalities that typically range from 15 to 30 percent off total cost. The following are costs without those rebates.  Click here to view Helio Home’s web page about the rebates and tax credits available under the Inflation Reduction Act.

  • Air source heat pump for heating and cooling your home, $22,000
  • Heat pump water heater, $4,000 
  • Insulation and air sealing work to improve efficiency, $5,000
  • Ventilation system for indoor air quality, $4,000
  • 10kW solar system PV, $30,000
  • Electric panel upgrade, if needed, $4,000
  • Electric vehicle charger, $1,500

That said, Helio Home’s average job is around $50,000. With rebates, figure $35,000 to $43,000. You can get a proposal on the company’s website www.heliohome.io.

Sadly, there are few vendors who are experienced and competent in heat pumps for heating and cooling homes. Heat pump water heaters are less of a challenge, because they are sold by Lowe’s and Home Depot, and you just need a plumber to install them and an electrician to pull a 240-Volt circuit to it. I bought a 50-gallon heat pump water heater in 2021 for $1,200 (on sale – prices are higher now) and was able to do the electrical work myself because of a nearby 240V circuit that was no longer in use. The self-employed plumber I used charged just $500, and I got a $400 rebate from Xcel Energy, so the cost was less than the figure quoted above. The federal rebate taking effect in January under the IRA makes such a purchase almost free.

You may find it more practical to leave your gas forced air furnace in place and install a ductless mini-split system. A compressor (similar to an A/C compressor) is installed outside your home, and two coolant lines are run to wall-mounted units in different rooms of your house. This works best in a one-story home. These same wall units provide both heating and cooling, because that’s how heat pumps work — they are like an air conditioner that works in two directions, moving heat out of your home in the summer and into your home in the winter. As the name suggests, they don’t create heat, they move heat, and they do it more efficiently than baseboard electric heating or heating generated by burning natural gas (or propane).

Instead of wall-mounted mini-splits, you can install a ceiling-mounted “cassette” which functions the same way. That’s what Helio Home installed in our downtown storefront, and it works just as well. (Come by our office and I’ll show it to you.) I have also seen a wall-mounted cassette which has a picture frame on it. When the heat pump is operating, the picture moves out a couple inches from the wall to allow the movement of air.

As for an EV charger, the biggest variable is the cost of bringing a 240V circuit to your garage, which depends on the distance between the garage and your breaker panel. I spent less that $300 for that, again from a self-employed electrician.

Tesla vehicles have the charger built into the car, so you only need a 240V outlet (similar to the outlet for your clothes dryer) to plug the provided cord into. Don’t buy the Tesla Wall Connector — it’s totally unnecessary for home use. Just use the charging cord with a 240V head.

Other EVs may require you to purchase a Level 2 charging station, which I did when I had a Chevy Volt. By googling “Level 2 EV chargers,” I found prices as low as $200 (Home Depot, 16 amp model), and several under $500. So your real cost depends on what your electrician charges.  Here’s an idea: If you have an electric dryer outlet available close to your garage, you could adapt that circuit for your EV at minimal cost.

Another use of natural gas that you’re probably using is for cooking and grilling. You’ll really love induction cooking if you try it, because it is so much faster. Buy a countertop unit for under $100 and play with it. For grilling, we love the George Foreman electric grill we purchased for $100.

Above all, pay attention to the tax credits and rebates that take effect on Jan. 1, 2023, under the Inflation Reduction Act. They make going all-electric more realistic.

Sustainability, Starting With Solar Power, Can Be Your Key to a More Affordable Lifestyle

The first Saturday of October is when the Metro Denver Green Homes Tour happens, and this year the tour is better than ever because it’s virtual. What that means is that instead of having to visit some or all of the homes between 9 am and 4 pm on a single day, you can watch short videos of each home. It’s possible you could “visit” all 16 homes and the one business in just one or two sittings at your computer and likely learn more about their sustainable features than if you had visited them in person. That’s what I call a green tour of green homes!

Since I shot all those videos myself and thereby learned all those homes’ sustainable features, you can consider me an expert on what’s new and exciting as well as what’s old and proven when it comes to making a home sustainable.

The theme this year is the Best Homes From the Last 25 Annual Tours. The home owned by Rita and me is on the tour, and since I just turned 73 I’d like to share with you how making our home sustainable also secured for us an affordable retirement — if and when I retire!

It all starts with solar power. Nowadays you can install enough solar panels on your home for under $20,000 so that you never pay Xcel or your other electrical provider more than the cost of being connected to their electrical grid. With Xcel Energy, that’s under $10 per month. The electricity you use is free, created from the sun.

You need to be connected to the grid, because the grid functions as your “battery.”  Your electric meter runs backward during the day when you’re creating more electricity than you use, and it runs forward at night. Your goal is to have it run backward more than it runs forward.

Plan ahead and buy enough electrical panels so that over time you can replace your  gas-fired appliances with electrical ones — a heat-pump water heater, a  heat-pump system for heating and cooling, and an electric range — and replace your gas-powered car with an electric one. Now everything in your life is sun-powered!

You can buy a used electric car for under $30,000 or even under $10,000 (Google “used electric cars” and see for yourself) and never buy gasoline or pay for an oil change or tune-up again and probably never have an expensive car repair either. Buying a used electric car is smarter than buying a new one because there’s hardly anything to go wrong with an EV — no transmission, timing belt, motor or hundreds of other expensive parts that could fail. See the article at right about our electric vehicle event. It’s the only in-person part of the tour.

So there you have it. Once you’ve paid off your mortgage (or transitioned to a reverse mortgage), the only costs of living in your home will be your property taxes and water bill, plus $10 per month for being on the electrical grid.

Be sure to “attend” this year’s tour of green homes. Register at www.NewEnergyColorado.com/home-tour. It’s free, although you will be asked for a donation. Another feature of the tour this year is three video presentations.

Hear Bill Lucas-Brown from GB3 Energy on “Reducing your Carbon Footprint with an Electric Mini Split”; John Avenson, from PHIUS.org and Steve Nixon from the National Renewable Energy Laboratory discussing “New Home vs Renovation: 2 alter-native Paths to Zero Energy”; and Peter Ewers from Ewers Architecture Golden presenting “All Electric Buildings, the Key to our Energy Future.”

Below are twelve of the videos in the YouTube playlist which you’ll get to view when you register for this year’s tour.

Sustainability Series Session #1: The Many Facets of Insulating a Home

This Thursday, January 17th, is the first of Golden Real Estate’s 6-part Sustainability Series. The topic this week is home insulation. Allow me to introduce the presenters and to share some of what I myself have learned from insulating my own homes and office, and from 17 years of selling homes and being active in the sustainability arena.

We have two great presenters at this month’s session. One is Steve Stevens, whose passion since retiring from Bell Labs has been the conversion of an energy-wasting 1970s brick ranch into a showpiece of sustainability through solar power, energy efficiency and super insulation. In addition to having insulation blown into his attic and walls, he had layers of poly-iso and structural insulated panels added to his exterior walls.  Then he went so far as to dig out and expose his home’s foundation walls so poly-iso insulation could be applied to them. He also constructed “air locks” on all entrances, and built a greenhouse on his south-facing exposure — both extremely effective insulating techniques.

Several years ago when Steve’s home was on the Golden Solar Tour, I shot a 40-minute video in which Steve described his home’s sustainability features — by far the longest of all the videos I have ever created for homes on that annual tour. A link to the video is at JimSmithColumns.com

The other presenter is Dennis Brachfield of About Saving Heat. I’ve known Dennis for over 25 years. His company insulated an office building I owned in Denver as well as a couple homes I have owned.  Dennis is bringing a blower door to this evening’s session in order to demonstrate its function. Using a fan to depressurize a home, a blower door helps to identify the location and extent of air leaks in a building.  Another tool Dennis will illustrate is an infrared camera. By pointing it toward ceilings and exterior walls, the camera shows the difference in surface temperatures, indicating areas that could benefit from air sealing and/or additional insulation. 

I’ll never forget the time 15 years ago when Dennis blew insulation into the exterior walls of a 1945 wood-frame bungalow I had purchased. The home’s gas forced-air furnace kept the ambient temperature at 70 degrees easily enough, but occupants still felt cold.  Dennis pointed out that even if there was insulation in the walls, voids surely existed, due to a combination of sub-par installation and years of settling. I was amazed at how much more comfortable the house was after having insulation blown in to fill all those voids. What I learned from that experience was that cold walls radiate coldness just as effectively as warm walls radiate warmth. Thus, a room with 70-degree air but cold walls feels cold in comparison to a room with the same air temperature but with walls that aren’t cold.

My current home was super-insulated by Bill Lucas-Brown of GB3 Energy.  I invited Bill to join us tonight, but he had a previous commitment. On www.GB3Energy.com, you can watch a Golden Solar Tour video I shot in which Bill describes his weatherization work, which included insulating the crawl space and the rim joist area. It’s very informative.

Here’s a simple way to determine how well insulated your home is.  When you go to bed on a cold winter night and turn your thermostat down — let’s say from 71 to 67 — look to see how quickly the home cools to that lower setting, triggering the furnace.  If it’s less than a couple of hours, you could probably benefit from improved insulation of your home. I’ve started turning our thermostat down an hour or more before bedtime and I’ve found that the temperature doesn’t drop enough to trigger the furnace until 3 a.m. or later.

When your home is that “tight” it’s important to ensure the introduction of enough fresh air to maintain good indoor air quality. For that, consider installing an “energy recovery ventilator,” or ERV. This device replaces a standard vent fan with a heat exchanger that warms incoming fresh air by extracting heat from the interior air that is being exhausted.

The ERV’s function will be explained in our session — or you can Google “energy recovery ventilation.”