Gas to Electric Appliances
Especially in California, there is a rush to convert gas to electric appliances. In South Orange County, California, many clients are questioning the costs to convert that government agencies are publishing.
Various State government agencies and utilities have started to publish their estimates to convert gas to electric appliances. The estimated cost of an electrical retrofit of appliances in residences ranges from:
- $14,363 per housing unit (apartment).
- $19,574 for multi-family units (condominiums and townhouses).
- $34,790 for single-family homes.
These costs include disposal of old appliances, purchase of new appliances, labor, and electrical panel upgrades.
Is there gas to electric appliances tax credits and rebates?
Government and public utilities are suggesting tax credits and rebates through taxpayer and utility rate payer funded retrofit programs (rebate programs). In other words, you are not really getting a rebate or tax credit because both government and public utilities have no money. The money they have comes from the taxpayer and the rate payer. You will pay that money back through a combination of tax increases and utility rate increases. Many of these will be buried so you never see the reason for your tax and utility bills increasing. There is also speculation that fees will be added to your new appliance purchases and disposal of your old appliances.
Currently, government and utilities are estimating these tax credits and rebates at $4,500 to $13,750 for ratepayers to convert their homes from natural gas to electric.
| Housing Unit | Stated Costs | Rebates (Estimate) | Net Cost |
| Singly Family Home | $34,790 | $13,750 | $21,040 |
| Multi-Family Home | $19,574 | $6,009 | $13,565 |
| Apartment Home | $14,363 | $3,658 | $10,705 |
The costs no one wants to talk about is the much higher costs to operate electric appliances. Natural gas is almost always cheaper than electricity. Choosing all gas appliances can save you up to 30 percent on your utility bill. The average American home is about 63% less expensive to heat with natural gas. Only during the winter of 2022-2023 has natural gas exceeded the cost of electricity. Much of this was due to federal government-imposed supply constraints.
What is involved when replacing gas to electric appliances?
When it comes to government and utility estimates, they always favor themselves. I’ve had many clients share with me that they have already remodeled their kitchen, replaced the hot water heater, and the furnace. The numbers they paid are much higher than what is being published publicly.
From my experience remodeling single family homes in South Orange County, here are the appliances and utilities I see in almost every home:
- Gas or electric range or cooktop (about evenly split)
- Gas tank type water heater
- Gas furnace
- Electric air conditioner
- Gas clothes dryer
- Gas fireplace
- 100 to 125amp service panel (electrical panel)
All these items will need replacing to convert your home to electric. You will also need to add an electric vehicle charging station. During this upgrade, a dedicated place to charge your lawnmower, edger, weedwhacker, hedge trimmer, etc. batteries will also need to be installed. Moreover, additional and upgraded wiring will be required through a large portion of your home. This means opening drywall and stucco walls, purchasing new appliances, and disposing of existing appliances. It will also likely require some changes to the homes existing structure.
What else will be required to upgrade my home from gas to electric?
You will also need to obtain all the necessary building permits to perform this work. Lastly, you will need to locate an experienced contractor to plan, organize, and complete the entire project. This is not an electrician! Electrical is only one part of this upgrade. There are also drywallers, insulation, masonry, carpenters, painters, demolition, and project coordination. There may also be finish carpenters, plumbers, movers, packers, tile installers, flooring installers, and woodworkers involved. An experienced remodeler such as DAD’s Construction can perform all your gas to electric upgrades correctly and safely.
What is the real gas to electric appliances costs?
Although current high inflation and interest rates make costs a moving target, the figures being provided by government agencies and public utilities are significantly off target. I have been remodeling homes for over 45 years and here are the real numbers that real people here in South Orange County can expect.
For the typical South Orange County, California home, the cost to convert and upgrade your home from gas to electric is between $77,625 to $100,913. This assumes you perform all work correctly and according to all applicable California Building Codes using licensed, experienced professionals.
These numbers are a long way away from what the government and utility companies are advertising. Adding the average cost of a new electric car, $61,000, and the total mushrooms to $137,625 to $161,913! If you do your own lawn maintenance, you will need to add these costs. Have a gas heater for your pool and/or spa, you need to add these costs. Have a propane or natural gas BBQ? Keep adding! By the time you are done adding in all the other extra items, it will cost over $200,000 to convert your home and life from gas to electric. Using a total payroll tax and insurance rate of 45%, you will need gross income of at least $290,000. Are you ready to write that check?
Don’t forget, electricity costs about 30% more than gas. So after you spend all this money, your monthly electric bill is going to increase substantially.
Will tax credits and rebates offset expenses?
Over the next 10 years, the Inflation Reduction Act of 2022 provides $45 billion in tax credits for gas to electric conversion. There were about 144 million housing units in the United States at the end of 2022. Using a conservative 100 million needing to convert from gas to electric, this equates to about $450 per household. That leaves you to personally pay for most of the conversion.
Always Hire a Reliable and Dependable Contractor to Remodel your Home
Always work with a trustworthy contractor like DAD’s Construction. We are experts in home remodeling who can manage projects in an efficient manner. DAD’s Construction will do everything to minimize the possibility of change orders. Our team will make sure we have all the necessary information to prepare a proposal that meets your requirements. Rest assured that we will provide you with a detailed, by line-item contract. We will make sure that the contents of this agreement are properly and clearly communicated to you. If you have questions or need updates regarding your project, we will always answer your inquiries.
How Can I Receive More Information on Remodeling my Home?
If you would like more information on enjoying the best bathroom, kitchen, and interior remodeling experience in Orange County, call Dan at (949) 380-0177 or at dan@dadsconstruction.com for a free in home consultation. DAD’s serves all of South Orange County California. This includes Lake Forest, Mission Viejo, Foothill Ranch, Portola Hills, Ladera Ranch, Irvine, San Clemente, Dana Point, San Juan Capistrano, Rancho Santa Margarita, Coto de Caza, Dove Canyon, Laguna Niguel, Laguna Hills, Laguna Beach, Newport Beach, and Aliso Viejo.
