Gas Appliance Displacement Market in NYC

This document outlines the issues surrounding new rules in NY to replace gas stoves and heaters with electric appliances. NYC’s immediate focus is on affordability and compatibility with standard electrical outlets. This creates several challenges that are discussed below.

Introduction and Background

The New York Power Authority (NYPA), in collaboration with the New York Housing Authority (NYCHA) and the New York State Energy Research and Development Authority (NYSERDA), is soliciting proposals for induction cooking stoves that can operate on a standard 120 Volt outlet.

This initiative is driven by the need to reduce carbon emissions in the building sector and address the indoor air quality impacts of gas stoves, with the ultimate goal of electrifying all cooking appliances in buildings, especially in those serving low-income households.

The New York Power Authority
NYCHA gas stoves

Goals

Replace all NYCHA gas stoves with electric induction stoves by 2050 to comply with Local Law 97 and improve living conditions.

The RFP seeks affordable, retrofit-friendly electric induction stoves that run on a 120V, 20-amp outlet, using efficiency, smart controls, and potentially battery integration.

Market Opportunity and Demand Aggregation

NYCHA estimates a need for approximately 156,000 units over the next 5-10 years to meet emissions targets.

The broader market potential includes over 47 million gas stoves across the U.S., highlighting a significant demand for a 120V induction stove solution.

CHALLENGES

1. Existing Electrical Circuit Limitations: Most homes and buildings with existing gas stoves lack the 240V, 40-amp electrical circuits and dedicated outlets required by all induction products available today. This poses a significant barrier to the adoption of induction technology, as the installation of new electrical wiring can be prohibitively expensive and cause major disruptions to residents.

2. Need for Retrofit-Friendly Solutions: There is a specific emphasis on finding a retrofit-friendly electric induction stove that operates on a standard 120V, 20-amp outlet. This approach aims to avoid costly electrical upgrades and skilled labor, making it possible to install in occupied apartments with minimal resident disruption.

3. NYCHA’s Infrastructure and Retrofit Costs: NYCHA needs approximately 156,000 units over the next 5-10 years to meet emissions targets.

4. Electrification of Cooking as a Significant Hurdle: The lack of affordable and easy-to-install electrification solutions for cooking is identified as a significant hurdle for existing buildings to eliminate fossil fuel use. This highlights a broader issue of infrastructure readiness for adopting new technologies aimed at reducing carbon emissions and improving indoor air quality.

5. NYCHA specifications will result in an abysmal user experience: An induction stove is only about 6% more efficient than a gas stove. Thus any electric stove that is powered by a 20A 120VAC outlet will provide half the cooking power compared to what the occupant is used to.

6. Cost of upgrading: We believe 5 will make NYCHA’s plan unacceptable for most people, which means that building retrofits will be necessary. The challenge is that upgrading a buildings electrical costs around $25,000 per apartment, when it’s possible. According to the architect quoted in the same article, only about 50% of building in NYC will have the space necessary to upgrade.

Rebates

Appliances

  • Induction Stoves: Provides a $700 incentive per dwelling unit.
  • Heat Pump Dryers: Offers a $500 incentive per dwelling unit, with the requirement that the dryers must be ENERGY STAR rated.

Heating & Cooling

  • Partial Electrification (Tier 1): Offers a $2,000 incentive per dwelling unit, with additional eligibility for NY Clean Heat incentives.
  • Full Electrification (Tier 2): Provides a $4,000 incentive per dwelling unit, also eligible for additional NY Clean Heat incentives.
Domestic Hot Water (DHW)

  • Partial Electrification (Tier 1): Offers a $750 incentive per dwelling unit, with potential for more through NY Clean Heat incentives.
  • Full Electrification (Tier 2): Provides a $1,500 incentive per dwelling unit, with eligibility for additional incentives from the NY Clean Heat program.

The incentives are designed to cover a portion of the installation costs, with a cap ensuring that NYSERDA contributions do not exceed 50% of the total eligible costs for market rate projects or 75% for low- or medium-income projects, up to a maximum of $3M in incentives across a corporate parent entity’s portfolio. Participants are encouraged to layer these incentives with other available offerings to maximize the financial support for their projects.