Industry Challenges and Opportunities in the Shift to All-Electric Water Heating Systems

In response to recent regulations mandating all-electric space heating and hot water systems in newly constructed buildings, industries are navigating the challenges of manufacturing and selling commercial water and space heating products to meet decarbonization or electrification-focused policies. Eric Truskoski, Vice President of Administration and Government Affairs at Bradford White Corp. explained the complexity of understanding and adhering to policy requirements and coordinating efforts between regulatory and government affairs teams and engineers, manufacturers, and purchasers. Additionally, retrofitting natural gas or propane systems with electric ones usually presents more difficulties than a simple product swap.


As more US cities and states pursue all-electric heating systems to reduce greenhouse gas emissions, questions arise about the readiness of the nation’s power infrastructure to accommodate the shift, particularly when retrofitting existing buildings. Manufacturers are investing in resources to meet the demand for electric products while also maintaining their current production lines, which is likely to lead to higher market prices for new technology and increased electricity costs for consumers. However, despite challenges such as power grid enhancements, product affordability, and customer awareness, the transition to all-electric systems is underway. Various industry leaders see significant growth opportunities in this market transition, particularly in retrofit markets and new construction.


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