Natural Gas Efficiency Study Supports Lower Energy Costs and Grid Reliability
Why It Matters
- New research supports continued investment in high-efficiency natural gas furnaces and other gas-fired equipment, reinforcing the value proposition contractors can discuss with customers considering replacement systems.
- The study highlights affordability and energy reliability as key decision factors amid rising energy costs while adding data to ongoing industry discussions around electrification versus technology-neutral decarbonization strategies.
- Regional factors such as climate and infrastructure influence the practicality and cost-effectiveness of both natural gas and electrical solutions, advocating for a mixed energy approach.
CHANTILLY, Virginia — A new study commissioned by the American Gas Foundation concludes that high-efficiency natural gas appliances can help reduce greenhouse gas emissions while lowering energy costs for residential and small commercial customers.
The research, conducted by Roland Berger and released July 15, found that high-efficiency natural gas equipment for space heating, water heating, cooking, and clothes drying can reduce emissions while using existing natural gas infrastructure.
According to the study, widespread adoption of high-efficiency natural gas technologies could reduce residential emissions by more than 20% at a cumulative abatement cost of $5 to $30 per metric ton of carbon dioxide-equivalent.
The report also found that high-efficiency residential gas furnaces can provide 14% emissions abatement while delivering net savings of $49 per metric ton of carbon dioxide-equivalent. In the small commercial sector, high-efficiency natural gas technologies could reduce emissions by 19% while providing net savings of $105 per metric ton of carbon dioxide-equivalent.
The study says direct-use natural gas can also improve energy reliability by reducing demand on the electric grid during peak usage periods.
“Preserving energy affordability and reliability is a top priority, especially in this moment, but we can’t forget about the role natural gas is also playing in reducing emissions,” said Karen Harbert, president and CEO of the American Gas Association. “This study shows that improving the efficiency of direct-use natural gas technologies can help achieve emissions reductions while keeping energy affordable and reliable for American families, businesses and communities.”
The report also compares natural gas technologies with electric alternatives, finding that electric pathways can have higher emissions-reduction costs, particularly in colder climates where equipment, installation and backup heating requirements increase overall expenses.
The American Gas Association also cited previous research showing households that use natural gas for cooking, space heating, water heating, and clothes drying save an average of $1,030 annually.
According to the study, regional differences in climate, energy prices, infrastructure, housing stock, and installation complexity influence which technologies are the most practical and cost-effective. The report concludes that reducing emissions will require a mix of energy solutions rather than a single technology approach.