Electric Heating Systems for Commercial Businesses
Commercial buildings are responsible for roughly a third of all HVAC-related emissions in the United States. On-site consumption of natural gas and fuel oil, combined with fossil fuels used at grid scale, generates an outsized tonnage of CO2.
More commercial facilities are moving toward complete electrification to meet corporate climate commitments and avoid energy price volatility.
Commercial Heating Return on Investment
One study found that facilities that switch to electric heating systems can expect to see a complete return on investment in less than 10 years. New rebates and incentives in the Inflation Reduction Act could accelerate that ROI even further for qualifying businesses.
The success of a heating and cooling transition depends on identifying the right electric heating system for the application. Today, commercial heat pump systems can heat large commercial and industrial buildings. At Keen, we match the right heat pump system for your environment, utilizing the right solution to meet your unique needs. We’ve worked with several heat pump technologies, including:
Water-source heat pumps
Modular and packaged air-to-water heat pumps
Multi-pipe heat pumps
Ground-source heat pumps
Related: Choosing the Right Commercial Heat Pump for Your Business
Electric vs. Gas Heating in Commercial Applications
The costs of installing or expanding commercial HVAC systems varies widely based on facility size and the needs of the facility. Manufacturing, cold storage, clean rooms, and other environments have vastly different needs, and the expenses associated with HVAC and energy vary by industry, season, and operation.
However, converting electric heat and natural gas heat to BTUs (British Thermal Units), we find that it costs roughly $34.32 per 1 million BTUs of electric heat. Natural gas comes in at roughly $15 per 1 million BTUs. That doesn’t account for price fluctuations by region or season.
For forward-thinking businesses, the shift to electrification is the smart move. The price of natural gas has steadily increased since 2018, aside from a brief dip in early 2020 due to the coronavirus pandemic.
At the same time, the price of grid-scale renewable energy has fallen precipitously, and solar energy production alone is expected to triple in the next five years, hitting 336 GW by 2027.
Switching to Electric Heating Systems with Keen Technical Solutions
Make a move to a more sustainable heating system with help from our expert team of HVAC technicians. Our energy consultants will conduct a thorough audit of your facility and make recommendations to improve energy efficiency, lower energy expenses, and make the most of existing energy rebates and incentives. Get ahead of the competition; contact a Keen energy expert today.