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Five years ago, San Francisco–based startup Span debuted a smartphone-controllable electrical panel that allows homeowners to manage their solar panels, backup batteries, EV chargers, HVAC systems, and other major household appliances in real time. It was a high-end product for a high-end market.
But as more households purchase EVs, heat pumps, induction stoves, and other power-hungry devices, the demand for cheaper ways to control their electricity use is growing — not just from homeowners trying to avoid expensive electrical upgrades but utilities struggling to keep up with rising power demand, too.
Enter the Span Edge, unveiled at the Distributech utility trade show in Dallas this week. The device packs the startup’s core technology into a package that can be installed in about 15 minutes and plugged into an adapter that connects to a utility electric meter.
Span’s other products are targeted at homeowners; electrical contractors; and solar, battery, and EV charging installers. But the Span Edge, which requires a utility worker to install, is “expanding way beyond a homeowner or installer-led adoption of the product, to becoming part of the utility infrastructure,” said CEO Arch Rao.
That makes it one of a growing number of tools for utilities to manage the solar, batteries, EVs, controllable appliances, and other distributed energy resources that they must increasingly plan around.
If utilities manage these resources reactively, they could drive up the cost and complexity of managing the grid. But if utilities can get better information about when and how these devices use power — and if some customers are willing to adjust them sometimes to reduce grid stress — they could actually save ratepayers a lot of money.
That’s what Span’s new technology aims to allow. The company’s “dynamic service rating” control scheme can throttle or shift power use between household electrical loads, based on a homeowner’s preset or real-time priorities. That helps ensure total draw on the utility grid stays below a home’s top electrical service capacity, which typically ranges between 100 and 200 amps.
Households that want to exceed the limit of their electrical panel are often forced to upgrade to a larger one. Depending on where you live, that can cost from $3,000 to $10,000 and add days to weeks of extra time to a project, like installing an EV charger. If a utility determines a home’s new maximum power draw will trigger grid upgrades, the project could be even more expensive and take much longer to complete. In the worst case, that could kill households’ plans to do everything from switching to an EV to electrifying their heating and cooking.
It’s also expensive for utilities. “Where consumers are adding heat pumps and EV chargers, the existing solution has always been, ‘Let’s build more infrastructure — more poles and wires — to meet the maximum load,’” Rao said.
Installing a device like the Span Edge could well be a more cost-effective alternative, not just for the customers who get one but for customers as a whole. Utility rates are largely determined by dividing the amount of money earned from electricity sales by the amount of money utilities have to collect from customers to cover their costs. A big and rising portion of U.S. utility costs is tied up in upgrading and maintaining their power grids, including to meet rising demand for power from EVs and heat pumps. As a result, ratepayers in many parts of the country are seeing higher bills.
If devices like the Span Edge can cut those grid costs while allowing people to buy more electricity for EVs and heating, rates for everyone will drop over time, Rao said. While some utilities may balk at replacing profitable grid-upgrade investments with new technology, others that want customers to electrify to meet carbon-reduction mandates or to increase electricity sales may be eager to implement it, he argued.
Span’s smart electrical panel was among the first attempts to give the old-fashioned electrical panel a 21st-century makeover.
But similar products that also embed circuit-level controls are now available from major manufacturers, including Schneider Electric and Eaton; startups such as Lumin and Koben; and solar and battery vendors like FranklinWH, Lunar Energy, and Savant.
Utilities have been experimenting with such technologies for a while. Some plug directly into utilities’ existing electric meters, including the Span Edge, ConnectDER’s smart meter collar devices, or the Tesla backup switch.
Others are embedded elsewhere in a home’s electrical system, like the controls product startup Lunar Energy is developing using Eaton’s smart circuit breakers. Those digital, wirelessly connected breakers are “modular, interoperable, and retrofittable,” Paul Ryan, the company’s general manager of connected solutions and EV charging, told Canary Media in October. That’s helpful “as you add heat pumps and electric vehicle charging,” he said — and could be useful for utilities, a group of customers Eaton has worked with for many years.
The trick for all of these technologies is to combine the convenience and simplicity consumers demand with utility safety and reliability requirements, said Scott Hinson, chief technology officer of Austin, Texas–based nonprofit research organization Pecan Street.
In a 2021 report, Pecan Street estimated that about 48 million U.S. single-family homes with service below 200 amps might need to upgrade their electrical panels to support electric heating, cooking, and EV charging.
But not all of the technologies that allow customers and utilities to sidestep upgrades necessarily meet the needs of both parties, he said.
Take the smart-home platforms on offer from Amazon, Apple, Google, Samsung, and other tech vendors, which can control light bulbs, thermostats, ovens, refrigerators, and a growing roster of other devices. These systems rely on WiFi and broadband connections, and that’s not good enough to let households skip upgrading their electrical panels, Rao pointed out. The latest certifications for power control systems require fail-safes that work even when the internet is down, something Span’s products do by sensing overloads and shutting down circuits.
On the other hand, rudimentary on-off control switches are far from ideal, Hinson said.
“A lot of these devices don’t like to be controlled” by having their power cut off externally in such a rough-and-ready manner, he added. For example, abrupt power cutoffs trigger the “charging cord theft alert” feature in EVs like the Chevy Volt, which starts the car alarm until the owner shuts it off — not a pleasant experience for the EV owner or neighbors.
More importantly, Hinson said, a good system needs to control “large loads so they’re aware of each other,” he said. Homeowners want to control which appliances get shut off when the need arises, whether it’s their EV charger, clothes dryer, oven, or heating and cooling, he said. But to do that, “the car has to know what the electric oven is doing, which has to know what the heater is doing.”
Span’s devices have two ways to do this, Rao said. Because they contain the connection points for power to flow through circuit breakers to a home’s electrical wiring, the devices can directly measure how much power household loads are using — and cut them off completely in an emergency.
At the same time, Span uses WiFi or other technologies to communicate with “smart” heat pumps, water heaters, EV chargers, and other devices, he said. That allows households to control the power that devices get on a more granular scale as well as collect information beyond how much power they’re using, such as when an appliance is scheduled to turn back on or, for EVs, how quickly they need to be recharged to give the driver the juice they need to get to where they’re going next.
What’s important is that a system can provide both options, Rao contended. “If you only did on-off control, the customer experience is bad,” he said. “If you only did WiFi, you’re not safe enough for the grid.”
Having both visibility into and control over home electricity flows creates the groundwork for a more flexible approach to enlisting homes in utility virtual power plants, or VPPs. In simple terms, VPPs are aggregations of homes and businesses that agree to turn down power use or inject power onto the grid as utilities need, helping reduce reliance on large centralized power plants.
Most of the virtual power plants that exist today are organized around individual devices — smart thermostats that can reduce electricity demand from air conditioning, for example, or solar-battery systems that can send power back to the grid. Each of these technologies has its limitations, and utilities’ reliance on them is often constrained by a lack of precise data on how much power the grid is using or can offer at any particular time.
A system that tracks the energy use of multiple appliances and devices in a home could bring far more precision to these VPPs, Rao said. “That’s very different than the demand-response world, where you call a thermostat and say ‘I hope it responds to me.’”
Utilities certainly have a growing interest in using these kinds of devices. On Monday, Pacific Gas & Electric announced a new VPP pilot program that seeks to enlist customers willing to allow the utility to control their “residential distributed energy resources to reduce local grid constraints.”
PG&E is looking for up to 1,500 electric residential customers with battery energy storage systems and up to 400 customers with smart electric panels. Its partners include leading U.S. residential solar and battery installer Sunrun, which has done VPP pilots with the utility in the past, and Span, which will use its technology to allow homes to respond to utility signals.
Span has already tested this capability in a pilot project enlisting customers who’ve installed the company’s smart panels in Northern California, Rao said. The results so far are promising, although only a handful of households are taking part.
Getting utilities to deploy Span Edge devices could expand the scale of those kinds of programs, he said. Of course, households will have to agree that letting some of their electricity use get turned off or dialed down during hours of peak grid stress is worth avoiding the cost and wait times of upgrading their electrical service to get the EV charger or heat pump they want.
Span hasn’t revealed the cost of the Span Edge, which Rao said will soon be deployed in pilot projects with as-yet unnamed utilities. The company has a partnership with major smart-meter vendor Landis+Gyr, which is offering the Span Edge to its utility customers.
The question for utilities, regulators, and other stakeholders is whether the long-term payoff in avoided infrastructure upgrades is worth the cost of the technologies that must be deployed to make that possible. Those calculations will inform decisions such as whether customers getting the technologies should pay a portion of the price tag and how much profit utilities should be allowed to earn on the costs they bear in installing the tech.
PG&E’s chief grid architect, Christopher Moris, said the Span Edge device “is a potential solution which may be able to, at a reduced cost, enable customers to connect their EV and transition off of gas.” One of the utility’s biggest near-term challenges is helping customers install EV chargers, he noted. PG&E has more than 600,000 EVs in its service territory, almost certainly more than any other U.S. utility.
The company also faces customer and political backlash to its recent rate hikes, a problem driven by its need to carry out more and costlier power grid upgrades. While devices like the Span Edge could help address that problem, “we realize how new such a concept is for our customers,” Moris said.
“I’m very bullish on this new solution — but we don’t know what we don’t know,” he said. PG&E “will need to go through a customer discovery process to really understand their challenges more first, before definitely landing on the Span solution and, if so, what the end-to-end solution looks like.”
A clarification was made on March 26, 2025: An earlier version of this article implied that Lunar Energy and Eaton are co-developing a home energy controls product, and that Eaton is testing its AbleEdge circuit breakers for use by utilities. In fact, Lunar Energy is integrating Eaton’s AbleEdge smart breakers into Lunar Energy’s home energy controls platform, and while Eaton has worked with utilities in the past, it has yet to test its AbleEdge devices with utilities.
This story originally appeared in New York Focus, a nonprofit news publication investigating power in New York. Sign up for their newsletter here.
New York state is one step closer to banning fossil fuels in new buildings.
On Friday, the State Fire Prevention and Building Code Council voted to recommend major updates to the state’s building code, which is updated every five years and sets minimum standards for construction statewide. The draft updates include rules requiring most new buildings to be all-electric starting in 2026, as mandated by a law passed two years ago.
The vote came after the code council went missing in action for more than two months, leaving some advocates nervous that the state might be wavering on the gas ban. With the rules now entering the final stage of the approval process, New York remains on track to be the first state to enact such a ban.
The new draft code also tightens a slew of other standards in a bid to make buildings more energy efficient and save residents money over the long term. But it leaves out several key provisions recommended in the state’s climate plan — possibly running afoul of a 2022 law.
Specifically, the draft energy code leaves out requirements that new homes include on-site energy storage and be wired such that owners can easily add electric vehicle chargers (when the property includes parking space) and solar panels. The state’s 2022 climate plan listed these three provisions as “key strategies” to achieve New York’s legally binding emissions targets. On-site energy storage also makes homes more resilient when disasters strike, the plan noted, providing backup power in the event of a blackout.
A separate 2022 law required the state to take those recommendations into account when updating its building code.
“Updating the infrastructure for those things is a key part of what this transition is,” said Michael Hernandez, New York policy director at the pro-electrification group Rewiring America.
The Department of State, which oversees New York’s code development process, did not respond to a request for comment.
Buildings are New York’s largest source of emissions, according to the state’s accounting, amounting to nearly one-third of all climate pollution. New York’s buildings burn more fossil fuels for heat and hot water than any other state’s, according to the clean-energy group RMI. That contributes not only to global warming but also to local air pollution, with deadly consequences: A 2021 study by Harvard researchers found that pollution from New York’s buildings causes nearly 2,000 premature deaths a year.
Cutting that pollution will require major upgrades to the state’s aging housing stock — an enormous challenge. But climate hawks stress that the first and easiest step is to stop digging the hole deeper, by making new buildings as climate-friendly as possible. Making them all-electric is a key part of that. But other, subtler changes can also play an important role.
The fossil-fuel industry, for its part, is taking those changes seriously. Gas trade groups led a major fight to keep provisions such as the EV-ready requirement out of the national building code that provides a model for states including New York. After nearly five years of wrangling, the International Code Council — actually a national nonprofit — that oversees the process voted not to include the provisions as requirements, siding with the gas groups over the advice of its own experts.
Among the parties who stood up for the stricter energy code: a New York state code official, who joined advocates like Hernandez one year ago in urging the International Code Council to keep the requirements in. Yet the state is now following the national group’s lead and relegating the solar, electric vehicle, and battery standards to the appendices of its draft code. That means they can still serve as templates for localities that want to adopt the tougher standards, but they’re not required.
Fossil-fuel interests and some Republican lawmakers have argued that including such mandates would only drive up the cost of new homes at a time when housing is already deeply unaffordable. But climate advocates point out that it’s far cheaper to install electrical infrastructure up front than add it in later on — as much as six times cheaper in the case of an EV charger, for example.
That’s in keeping with many of the green rules that New York did include in its new draft code. Chris Corcoran, a code expert at the state energy authority NYSERDA, told the code council on Friday that adopting the full suite of proposed energy rules will add about $2 per square foot to the up-front cost of new homes but save residents more than three times that over 30 years.
It’s not entirely clear who in New York has pushed to leave the storage, solar, and EV provisions out. Only eight groups disclosed that they lobbied on the building and energy codes last year, and it’s not obvious that any of them had a specific interest in opposing those rules.
Officials speaking at Friday’s meeting did not explain why they left out the requirements. One lawyer who helped draft the updated energy rules, Ben Kosinski, left the Department of State just this month to work as chief counsel for the Senate Republicans, for whom he also worked before joining the code office, according to his LinkedIn profile. The GOP caucus has voted almost unanimously against the laws driving the pro-electrification updates to the code. (Kosinski did not immediately reply to a request for comment.)
Although the council voted unanimously on Friday to advance the all-electric rules, not all members supported the move. William Tuyn, a builders’ representative from the Buffalo area, noted that the state adds roughly 40,000 homes a year — a tiny fraction of the roughly 7 million that already exist.
“We don’t even make a dent in the issue of climate change by focusing there,” he said in the final minutes of the meeting. “The Legislature did what they did. That ship has sailed … [but] we really need to concentrate on renewables or improving the grid if we’re really going to be able to do something and we’re not just going to simply crash the economy of the state of New York.”
Several lawmakers urged the council on Friday to include the full suite of climate provisions in the final rules.
“These provisions are not trivial add-ons. They are the backbone of a truly effective energy code,” said Neil Jimenez, legislative director for Assemblymember Yudelka Tapia. “Their exclusion weakens the very foundation upon the policies we’ve fought so hard to put into place here in Albany.”
A fast-growing startup is giving Texas homeowners cheap access to unusually large batteries for backup power — and paying for it by maneuvering those same batteries in the state’s ERCOT energy markets.
Base Power launched last May and already has installed more than 1,000 home batteries, around 30 megawatt-hours, in North Austin and the Fort Worth area, CEO Zach Dell told Canary Media recently. The company plans to expand that footprint to 250 megawatt-hours this year, he added.
To make good on that promise, the 80-person startup rolled out service to the Houston area last week. That move had been planned for this summer, but customers in the storm-prone metropolis were calling and emailing to sign up, and a cold snap was bearing down on Texas, testing the grid’s ability to keep pace with winter energy needs.
“We saw what happened in Winter Storm Uri, four years ago, and we want to put a solution in the hands of Texans for situations like that,” Dell said, referring to the widespread grid outages that contributed to hundreds of deaths. “As another cold front sweeps through Texas this week, we felt like pulling up the Houston launch as quickly as possible was the right thing to do.”
If a homeowner in Texas wants backup power, they could buy solar and a battery. But most battery products aren’t large enough to meet the needs of the typical American home — that’s why you see three Tesla Powerwalls lined up in some garages. At that point, the out-of-pocket cost reaches tens of thousands of dollars, unless the buyer grapples with the current state of interest rates and takes out a loan.
Base Power pitches the benefits of whole-home backup power without the massive up-front expenditure. The company designed its own battery for the express purpose of backup power, so each unit packs 25 kilowatt-hours of storage instead of the usual 10 or 15. It can instantly discharge 11.4 kilowatts of power. Some people get two of these side by side for a truly hefty home energy arsenal.
But the customers don’t buy this product: They pay a $495 installation fee and an ongoing monthly fee of $16. They also choose Base Power as their electricity retailer — Texas allows customers to pick who they buy from — and pay 8.5 cents per kilowatt-hour for their general household consumption.
If there’s no such thing as a free lunch, nor is there nearly free backup power. Base Power (and, by extension, its venture backers) fronts this rather hefty bill, on the premise that it can make money not just from customer subscriptions but by bidding the decentralized battery fleet into the ERCOT energy markets. That also lets Base Power charge a lower rate for household electricity than it otherwise would need to.
“We’re a battery developer; we’re an asset owner,” Dell explained. “For us and for the customer, a bigger battery is better.”
In that sense, this company is the newest in a lineage of startups seeking to unlock the multi-layered benefits of distributed energy devices, which both help a local customer and, when harnessed with effective software and amenable market rules, make the overall grid more clean and efficient.
Many startups have gone bankrupt chasing this rosy vision. Base Power aims to avoid their fate by adopting a very old technique in the utility sector: vertical integration.
In order to make its customer-friendly product into a viable business, Dell and company have taken control of every step of their value chain, rather than outsourcing or partnering.
The company designed its own battery hardware, giving it far more capacity than the market-leading home battery systems. Base Power wrote its own software to govern the batteries and operate them as a decentralized fleet bidding into the wholesale markets. And the startup does its own sales, installations, and long-term maintenance.
The corporate strategy, Dell explained, is to create “compounding cost advantage through vertical integration.” If Base Power bought, say, Tesla Powerwalls and resold them to customers, it would have to give Tesla a margin. If it paid outside firms to knock on doors and pitch batteries, those commercial evangelists would also take their cut. Contracting out for installation further dilutes the profits, and so on.
“Because we do all these things, we can take cost out of every part of the system and then pass those savings down to the customer in the form of low prices,” Dell said. “As our returns go up and our cost of capital goes down, our intention is to build the largest and most capital-efficient portfolio of batteries in the country.”
Minimizing cost and reliance on outside parties makes fundamental sense, and yet fledgling startups typically shy away from taking on so much for fear of biting off more than they can chew.
“It’s really hard,” Dell admitted. However, “because it’s so hard, there’s not a lot of people who can do it.”
It’s a business strategy that calls to mind the ancient bristlecone pines that occupy a remote, arid mountaintop between the eastern Sierras and California’s border with Nevada. The trees suffer extremes of heat and cold and thirst and wind, but when they persist, they carve out a niche where few competitors can survive. The oldest bristlecones predate the pyramids of Giza.
The do-it-all approach also distinguishes Base Power from others that are similarly trying to get more batteries into people’s homes.
German company sonnen has been working on this challenge for over a decade and operates a vast network of home batteries in Germany that make money in power markets there. In the U.S., the company partners with solar companies and sometimes with real estate developers to sell its batteries. Sonnen launched a no-money-down battery offering in Texas with a company called Solrite, which had put equipment in more than 1,000 homes as of January, a similar volume to what Base Power has installed.
Neither sonnen nor Solrite are retail electricity providers in Texas, though, so they need to pair up with companies that buy and sell power and can monetize the batteries’ ability to arbitrage. The Solrite deal requires people to sign up for 25 years and buy out any remaining value if they want to quit before the quarter-century mark. Base Power, in contrast, asks customers to commit to a three-year retail contract, and the cancellation fee is $500, to cover removing the battery system.
Other climatetech-savvy retailers offer special deals for people who buy their own batteries. Great Britain’s Octopus Energy has entered the ERCOT market and offers modest monthly credits per kilowatt-hour of storage capacity if residents let the company manage their home batteries. Octopus uses its software to shift consumption to times with abundant renewable generation, thereby lowering the cost of serving those households.
Startup David Energy offers retail plans in which the company optimizes customers’ battery usage to minimize their overall electricity bill. Tesla itself opened a Texas electricity retailer subsidiary that pays customers a fixed credit of $400 per year for each Powerwall pack that they allow to discharge to the grid, up to three Powerwalls.
Those providers still need customers to front the money or take out a loan to install their own batteries, which constrains how quickly battery adoption can grow. On the other hand, that model means those companies can focus on honing their energy software and trading strategy and don’t have to spend millions of dollars to install and own batteries that might one day pay for themselves.
Base Power pays for its buildout with a mix of equity, debt, and tax credits, Dell noted. Investors funded an $8 million seed raise led by Thrive Capital and a $60 million Series A led by Valor Equity Partners. As for making money, Base Power uses the batteries to arbitrage energy in the ERCOT market from the renewables-filled times of plenty to the valuable hours of scarce supply. The company is currently undergoing qualification to bid ancillary services, a more complex suite of market offerings that maintain the quality and reliability of the grid.
As temperatures dipped well below freezing last month in Asheville, North Carolina, the heat pumps at Sophie Mullinax’s house hummed along, keeping up just fine.
The fact she was warm inside without a gas furnace while the outdoor temperature read 9 degrees Fahrenheit reaffirmed a core belief: “Electrification is better in almost every way you slice it.”
Mullinax is chief operating officer for Solar CrowdSource, a platform that connects groups of customers with solar panels and electric appliances. Since last spring, the company has been preparing for North Carolina’s first-ever statewide incentives for switching out gas stoves and heaters for high-efficiency electric versions.
The Energy Saver North Carolina program, launched in mid-January, includes more than $208 million dollars in federally funded rebates to help low- and moderate-income homeowners make energy-saving improvements, including converting to electric appliances.
“The electric counterpart to every single fossil-fuel technology out there does the same job better,” Mullinax said, and “has a lower impact on the climate, is healthier, and often saves money.”
Solar CrowdSource, which has partnered with the city of Asheville and Buncombe County to help meet the community’s climate goals through electrification, expects the rebate program to make its task easier.
Still, questions remain about the federally funded inducements, including — perhaps most urgently — whether they can survive President Donald Trump’s unilateral assault on clean energy.
The state’s new incentive program stems from the Inflation Reduction Act, the 2022 federal climate law that unleashed nearly $400 billion in federal spending on clean energy and efficiency — and which is now embattled by a flurry of Trump edicts.
While much of the climate law directs incentives to large, utility-scale wind and solar projects, the $8.8 billion home rebate program is designed to curb planet-warming emissions house-by-house, where there is vast potential for improving efficiency and shifting to electric appliances.
Studies estimate that roughly 35% of home energy use is wasted — lost to inefficient heating and cooling systems and appliances, air leaks around windows and doors, and poorly insulated walls. That’s especially true in states like North Carolina, where building energy conservation codes are woefully outdated.
While homes in North Carolina rely less on fossil-fuel appliances than in other parts of the country, they still contribute to climate change. About a third are heated with fuels other than electricity, per the U.S. Census Bureau. According to the Energy Information Administration, some 15% use gas for cooking. In all, state officials estimate that households that burn gas, propane, and other fuels account for 5% of the state’s net greenhouse gas pollution.
Both energy waste and the rising cost of fossil fuels — whether burned directly in the home or in Duke Energy power plants — contribute to the state’s energy burden. Some 1.4 million North Carolinians pay a disproportionately high fraction of their income on energy bills, according to the state’s latest Clean Energy Plan.
But though the state has long deployed federal weatherization assistance to its lowest-income households, there’s little precedent here for a widespread nudge to electrification, either through carrots or sticks.
Unlike dozens of municipalities around the country, no local government in North Carolina has moved to limit residential hookups for gas; most legal analysts say they lack the power to do so. In 2023, the state legislature made doubly sure of that with a law banning local bans on new gas appliances or connections.
Meanwhile, a decades-old state rule barring ratepayer-funded utility promotions that could influence fuel choice has prevented Duke from offering much in the way of carrots. While shareholders could pay for rebates, they have little motive to do so: Duke acquired Piedmont Natural Gas, the state’s predominant gas utility, in 2016.
For years, Duke has offered incentives, carefully calibrated not to run afoul of state rules, for builders to construct more efficient homes. The latest iteration of those ratepayer-backed inducements is under $2,000 per home. By contrast, the new statewide rebates for upgrading to electric appliances cap out at $14,000 apiece.
“This is the largest and the first program in the state that is truly incentivizing fuel switching,” said Ethan Blumenthal, regulatory counsel at the North Carolina Sustainable Energy Association.
A second program within Energy Saver North Carolina offers rebates of up to $16,000 to homeowners who add insulation, plug air leaks, and make other improvements, so long as an audit shows the measures will reduce energy use by at least 20%.
In both cases, North Carolina officials are aiming the incentives at low- and moderate-income households. Those earning less than 80% of the area’s median income — about $70,000, depending on the county — get projects for free, and those earning up to 150% of the median get a 50% rebate.
“That was a choice. The federal government did not require it to be a specifically low- to moderate-income program,” said Claire Williamson, energy policy advocate at the North Carolina Justice Center. Yet, she added, the administrations of former Gov. Roy Cooper and current Gov. Josh Stein have “made sure that these funds are going to people who need them the most.”
Like Solar CrowdSource, the North Carolina League of Conservation Voters has awaited the new rebates for months. Meech Carter, clean energy campaigns director at the group, has been handing out flyers, holding information sessions with legislators and community leaders, and setting up an online clearinghouse for homeowners to explore available incentives.
“Every time I present on the website and what resources are out there, I get so many questions on the rebate program,” Carter said, “especially for replacing gas appliances, propane heaters, and transitioning folks to cleaner sources and more energy-efficient sources.”
Costs and climate concerns are factors, she said, but so is health. Just like fossil-fuel–burning power plants and cars, gas stoves and furnaces emit soot and smog-forming particles. A growing body of evidence shows that these pollutants get trapped indoors and far exceed levels deemed safe.
Now that the rebate program has launched, Carter has dozens of people statewide to call back and assist, including 25 in Edgecombe County’s Princeville, the oldest town in the country chartered by Black Americans.
Edgecombe is among the state’s most impoverished counties, making it a prime candidate for the new rebates. “Considering North Carolina’s energy landscape,” Carter said, “we are very optimistic about this program.”
Yet even champions for the program acknowledge they have questions about its deployment. Despite the immense need, it’s hard enough to expend weatherization assistance money due to distrust in government programs, a dearth of qualified contractors, and other hurdles. Those funds, intended for the state’s lowest-income households, total roughly $38 million per year at the moment, after a big infusion from Congress, according to state officials. The new rebates, if evenly distributed over five years, would more than double that with another $41.6 million annually.
“This is larger than the weatherization assistance program,” said Williamson. “There are many contractors out there, but I think there is going to be a big lift to get people trained.”
Announcing the program last month, Gov. Stein stressed that new contractors and other workers would follow.
“[The Department of Environmental Quality] estimates that the program will support over 2,000 jobs across our state,” Stein said at the launch event. “I’m also eager to see the workforce development opportunities that will come.”
Asked how historically disadvantaged communities could benefit from such opportunities, department spokesperson Sascha Medina said over email, “We have planned this program to launch and ramp up for continuous improvement. We will be focusing our marketing to contractors in high energy burden and storm impacted areas first and will expand from there.”
Still, the counties most devastated by Hurricane Helene, like Buncombe, aren’t first on the program’s outreach list. The department’s analysis of statewide energy burdens led it to choose Halifax County in the eastern part of the state along with Cleveland County, in the foothills.
“The hurricane affected areas add a layer of complexity to the program because the rebate programs cannot duplicate money that has been awarded to households through other recovery funding sources,” Medina said. “As we roll out the program, we will continue to work with our partners in the affected areas and receive guidance from the U.S. Department of Energy.”
That guidance from a Trump-led Department of Energy could imperil the success of the rebates more than any other factor. While the president rescinded his widely panned memo halting virtually all federal government spending, his first-week orders targeting Biden-era clean-energy spending appear to remain in force.
The fact that the federal government signed contracts with the state in accordance with a law passed by Congress should shield North Carolina’s Energy Saver rebate program from harm, Department of Environmental Quality Secretary Reid Wilson said at the launch.
“This is finalized. This is done,” Wilson said.
CLEAN ENERGY: Food and beverage production facilities across the U.S. begin to deploy low-carbon heating technologies as an alternative to gas-powered systems, though high costs remain a barrier. (Canary Media)
POLITICS:
GRID:
COAL ASH: A coalition of U.S. power companies sends a letter to Trump’s EPA nominee asking for“immediate action” to roll back federal regulation of toxic coal ash and rescind recent enforcement actions. (Canary Media)
EMISSIONS:
EFFICIENCY: Twenty-four states lack energy efficiency standards meant to curb energy use, which advocates say come with economic as well as climate advantages, according to a new industry report. (Grist)
WIND: President Trump’s actions against wind energy development might actually benefit Texas’ wind industry because the vast majority of its projects are located on private and not federal land, says the director of a university energy institute. (Texas Standard)
COMMENTARY: A California columnist urges policymakers to continue to invest in risky clean energy innovation even as the “expensive, bird-killing eyesore” known as Ivanpah solar plant nears its retirement. (Los Angeles Times)
UTILITIES: S&P downgrades the credit rating of three Connecticut utilities, with executives blaming state regulators for rejecting rate increases as costs increase. (CT Insider)
ALSO: New Jersey lawmakers advance a bill that would require utilities to alert customers mid-month if their energy usage is unusually high. (New Jersey Monitor)
CLIMATE:
OVERSIGHT: New Hampshire’s consumer advocate is backing legislation to clarify the authorities of the state’s Public Utilities Commission and its recently created Department of Energy. (New Hampshire Bulletin)
WIND: A labor leader says Maine should reach out to other states to help support a deepwater port for offshore wind construction, after multiple attempts to secure federal funds have failed. (Maine Public)
ELECTRIC VEHICLES: New Jersey has surpassed 200,000 electric vehicle registrations, but an advocate says a lack of charging stations and shifting tax credits make it unlikely the state will hit its goal of 330,000 by next year. (NJ.com)
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This article was originally posted by South Dakota Searchlight.
Massive data centers used for cloud computing and artificial intelligence are consuming enormous amounts of energy, and developers are eyeing South Dakota as a potential location, regulators say.
These “hyperscale data centers,” or “hyperscalers,” are designed to handle immense computing demands and are often operated by tech giants. The centers are characterized by their large size — often tens of thousands of square feet — and thousands of computer servers that require significant energy to operate.
Nick Phillips with Applied Digital in Texas, a developer of the centers, highlighted South Dakota’s appeal: a cold climate that cuts down on cooling a room full of hot servers, and abundant wind energy that’s considered one of the most cost-effective renewable energy sources, which can help keep operating costs down.
State regulators are not aware of any hyperscale data centers currently operating in South Dakota.
“There isn’t a requirement to report hyperscale data centers to the commission, so we don’t have a formal method to track that information,” said Leah Mohr with the Public Utilities Commission.
Commissioner Kristie Fiegen noted that the state’s largest proposed data center is a 50-megawatt facility in Leola.
“We don’t know what’s coming,” she said. “But the utilities are getting calls every week from people trying to see if they have the megawatts available.”
The commission recently hosted a meeting in Pierre with representatives from regional utilities, regional power grid associations and data centers. The goal was to understand the emerging demands and facilitate an information exchange.
Bob Sahr, a former public utilities commissioner and current CEO of East River Electric Cooperative in Madison, emphasized the scale of energy needed.
“We’re talking loads that eclipse some of the largest cities in South Dakota,” he said.
A single data center campus can require anywhere from 300 to 500 megawatts of electricity to operate. One megawatt can power hundreds of homes. By one estimate, there are over 1,000 hyperscalers worldwide, with the U.S. hosting just over half of them.
Ryan Long, president of Xcel Energy, headquartered in Minneapolis, illustrated the extreme nature of the demand.
“We now have, I would say, north of seven gigawatts of requests across the Xcel Energy footprint for data centers to locate in one of our eight states,” he said. “And I’ll be very frank that there’s no way that we’re going to be able to serve all of that in a reasonable amount of time.”
Protecting existing customers from potential costs or energy shortages is another shared concern. Utility representatives emphasized the need for coal and natural gas to maintain a reliable “base load” when renewable sources like wind and solar are unavailable. Arick Sears of Iowa-based MidAmerican Energy underscored the point, noting that costs for each data center should depend on how much energy it consumes.
“We need to ensure that large-scale energy users are paying their fair share,” he said.
Utilities also flagged the risk of “stranded costs,” referring to a data center ceasing operations, leaving a utility with added infrastructure to meet a demand that no longer exists. They said financial safeguards will need to be written into power agreements with hyperscalers.
Speed of deployment is another pressing issue. Representatives from Montana-Dakota Utilities, headquartered in North Dakota, and NorthWestern Energy, headquartered in Sioux Falls, noted that some facilities expect to be operational within months of making a deal, straining infrastructure, planning and resources.
Grid managers Brian Tulloh of Indiana-based Midcontinent Independent System Operator and Lanny Nickell of Arkansas-based Southwest Power Pool echoed those concerns. They warned that data center growth is outpacing the grid’s ability to meet demand and cautioned against decommissioning coal power plants too quickly. Setting aside how much it would cost to produce the required energy, Tulloh estimated that MISO needs $30 billion in electric transmission infrastructure to support the demand from hyperscalers.
“The grid wasn’t designed for that,” Public Utilities Commissioner Chris Nelson told South Dakota Searchlight after the meeting.
Nelson was glad to hear the data centers will include backup generators, similar to hospitals, for power outages or when homes need prioritization. He said some even aim to have huge batteries to power the plant until the generators get going. They would consume massive amounts of diesel and natural gas until the outage is over.
Nelson said all of this makes modern nuclear energy facilities more attractive. He said few alternative “base load” options remain, and the public has little appetite for ramping up coal power.
NorthWestern Energy is exploring the possibility of constructing a small nuclear power plant in South Dakota, with an estimated cost of $1.2 billion to $1.6 billion for a 320-megawatt facility. The plant would be the first in the state since a test facility near Sioux Falls in the 1960s.
The company is conducting a study, partially funded by the Department of Energy. Details about the study and potential plant sites remain confidential.
Additionally, South Dakota’s Legislature has shown interest in nuclear energy, passing a resolution for further study on the topic that led to the publication of an issue memorandum by the Legislative Research Council.
WORKFORCE: Kentucky communities where developers are building large battery factories that are expected to create thousands of jobs are experiencing housing shortages, with a legislative study finding the state is 206,207 housing units short of what it needs. (Lexington Herald-Leader)
OIL & GAS:
SOLAR:
WIND:
CLIMATE: New research finds soaring insurance premiums fueled by climate change increase the probability of homeowners falling behind on their mortgages. (Floodlight)
GRID:
POLITICS:
NUCLEAR: A new report suggests Texas lawmakers rework the nuclear permitting process and establish a state fund to incentivize construction of new plants, similar to what the state established recently for gas-fired power plants. (Utility Dive)
HYDROELECTRIC: The Tennessee Valley Authority signs a deal with two companies to receive power from a 377 MW portfolio of four hydroelectric dams in Tennessee and North Carolina. (news release)
COMMENTARY: With the incoming Trump administration unlikely to address climate change, it’s up to the private sector to handle the job instead, writes the head of a conservative climate group. (South Florida Sun-Sentinel)
STORAGE: A Tennessee company announces it will build a $1.3 billion battery separator manufacturing facility in Virginia at the same site Gov. Glenn Youngkin previously said a Ford battery factory couldn’t use. (Virginia Business, Cardinal News)
RENEWABLES: A growing number of Mississippi farmers are leasing their land for wind and solar energy projects as they look for new revenue sources. (Mississippi Today)
PIPELINES: Virginia officials order the Mountain Valley Pipeline to pay $17,500 for erosion and sediment control violations over a three-month period. (Cardinal News)
OVERSIGHT: North Carolina regulators approve a new version of North Carolina’s energy plan that calls for more solar, batteries and wind, but critics attack the board for allowing Duke Energy to continue to rely on fossil fuels and miss an emissions reduction deadline. (Wilmington StarNews)
ELECTRIC VEHICLES:
OIL & GAS: The U.S. EPA finalizes a rule levying an excess methane emissions fee on oil and gas facilities, but West Virginia U.S. Shelley Moore Capito pledges to work with Donald Trump to repeal it. (Associated Press, West Virginia Public Broadcasting)
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Reliable hot water is critical for restaurants for preparing food and washing dishes and equipment, as well as hand washing.
However, water heating is one of the biggest energy users in restaurants. Heating water for restaurant use accounts for 16% of all commercial gas usage in California. Food service buildings are among the highest intensive energy users on a per-square-foot basis, largely because of their hot water usage. Foodservice operations may soon feel the pressure to electrify. The California Air Resources Board is analyzing proposed zero-emission GHG standards for new space and water heaters. It is currently planned for consideration in 2025 with any implementation beginning in 2030, and would only be applicable to the purchase of new equipment
Doing so will be difficult, particularly for existing restaurants. Many food service operations, especially small and independent businesses, do not have the space for the size of a storage tank that would be required for a heat pump water heater. Restaurants in California, as with most states, are legally required to have sufficient hot water to meet all these demands under peak conditions.
In response to these challenges, an emerging technology, the heat pump-assisted water heater, is gaining traction. It is designed to meet this existing gap between what the market needs and the cost and challenges of installing available heat pump water heaters. It is geared to meet the needs of existing food service businesses that want to be able to transition to a heat pump while still retaining the benefits of their current water heating system.
With funding from CalNEXT — California’s statewide emerging technology initiative — the TRC Advanced Energy team recently published a report, “Market Potential for Heat Pump Assisted Hot Water Systems in Foodservice Facilities.” This report, which TRC Advanced Energy developed with research support from Frontier Energy and Energy Solutions, assesses the benefits and challenges of adopting heat pump-assisted water heater technology for a range of food service establishments.
“Heat pump-assisted water heaters are a solution that we have available today,” said Amin Delagah, Associate Director of Research and Consulting for TRC Advanced Energy, an environmental services provider. “Heat pump water heater adoption rates in restaurants are still very low due to a lack of familiarity, space and electrical capacity requirements and primarily, the health department water heater sizing regulatory barrier, but the heat pump assist concept is a solution that we can move forward today to overcome these barriers.”
The heat pump-assisted water heater, as its name suggests, is designed to operate in series with an existing water heater, which makes it attractive for restaurants that do not want to overhaul their current system completely. During down times for the business, the existing heater would maintain the recirculation temperature of already heated water in its system. During off hours, the heat pump-assisted water heater would produce sufficient hot water to restock the system. Because the existing heater is already large enough to meet food service needs during business hours, the heat pump-assisted water heater system can be built to fit the available space, even if it is undersized.
The benefits of using a heat pump-assisted water heater are similar to those of a heat pump: improved energy efficiency and possibly lower long-term energy costs, although cost issues largely depend on the type of system being replaced. Natural gas fuel, which is used by 90 percent of food service operations for water heating, is currently cheaper than electricity in most of California.
Heat pump systems also provide cooling as a byproduct, which could be useful to counteract kitchen heat.
Heat pump-assisted water heaters are designed to address the big disadvantage of heat pump water heaters for restaurants — the longer time needed to heat the water from cold. One workaround is a much larger tank, but floor space is typically at a premium in restaurants, making this workaround unappealing for many food service operations. For a heat pump water heater to meet health department requirements, it would need a much bigger tank than its gas-fired counterpart (because the gas-fired water heater can heat water faster).
Heat pump-assisted water heaters may also be cheaper to install than a conventional, retrofitted heat pump water heater system, and the heat pump-assisted water heater does not need to meet these sizing regulations because the legacy water heater still functions as a backup system. At this point, the technology is still emerging and has not been installed commercially, but the authors estimate that initial costs for the heat pump water heater that acts as the assist, including installation, could range between $6,000 to $20,000. This amount, while significant, is still much cheaper than what it could cost a full-service restaurant to install a heat pump water heater capable of meeting water demands, which could well exceed $100,000.
“The costs for heat pump assisted heat pumps are largely driven by the electrical work and the space required, and there may be incentives available to offset these,” Delagah said.
Another benefit is that because the heat pump-assisted water heater is a backup system, it does not require health department approval, making the process simpler.
Both heat pump water heaters and heat pump-assisted water heaters also have the additional operational benefit of being able to benefit from time-of-use rates and the additional cooling they could provide for kitchens.
“This year in October, it was 95 degrees in the Bay Area,” Delagah said. “There are new California OSHA rules on the books for indoor temperatures — if your facilities are over an 82°F temperature indoors, you have to provide cooling centers for employees. That’s becoming an emerging concern for restaurants to meet a new heat illness standard.”
On the downside, the higher upfront costs will likely still be a significant barrier to the adoption of heat pump-assisted water heaters, even if they are relatively less expensive than heat pump water heaters.
One big hurdle is that health departments, by and large, are not familiar with the technology — and may be more resistant to its approval. The relatively high price of electricity in California, compared with gas, may be another barrier.
Yet regulations and the need to decarbonize are moving closer, with California’s 2030 deadlines for reducing its overall greenhouse gas emissions by 40%, in comparison with 1990 levels. Restaurants are well positioned to be the public face of doing their part.
“This is great equipment for restaurants that are thinking about positioning themselves for where things are going in terms of air quality regulations,” Delagah said. “If you’re a chain restaurant, you should probably be trying this out, kicking the tires a bit, and preparing for what your solution is going to be when there is a mandate.”
To learn more about this project, read the report on the CalNEXT website, calnext.com
About CalNEXT: CalNEXT is a statewide initiative to identify, test, and grow electric technologies and delivery methods to support California’s decarbonized future. CalNEXT is funded by the ratepayers of California investor-owned utilities and provides a means for studying emerging technologies and energy-efficiency innovations that have the potential to save energy via utility programs and/or market support.
Article written by Emily Pickrell, Energy Solutions
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