Umair Gaines
Electricity is used in almost all homes, with 25% of US homes using only electricity for their energy needs. The average US household consumes about 10,500 kilowatthours (kWh) of electricity per year, and this number is increasing as more appliances are used in the home. Electricity is generated in power stations and travels through transmission lines and distribution lines to our homes, where it powers our devices. Some homes use alternative energy sources such as natural gas, petroleum fuels, and wood, but electricity is more convenient as it can power a wider range of appliances. Electrifying the home can also save money and help address climate change.
| Characteristics | Values |
|---|---|
| Percentage of US homes that are all-electric | 25% in 2015 |
| 26% in 2020 | |
| Average electricity consumption per household | 10,500 kilowatthours (kWh) per year |
| Percentage of homes with a refrigerator | 99% |
| Percentage of homes with two or more refrigerators | 34% |
| Average cost of operating the most-used refrigerator | $87 per year |
| Average cost of operating a second refrigerator | $66 per year |
| Average cost of operating a separate freezer | $74 per year |
| Percentage of Midwest homes with a second refrigerator | 38% |
| Percentage of Midwest homes with a separate freezer | 44% |
| Energy sources used in generating stations | Solar, wind, coal, natural gas, or water |
| Energy sources used in US homes | Electricity, natural gas, heating oil, kerosene, liquefied petroleum gas (LPG), propane, wood |
| Percentage of US homes using electricity for main heating equipment | 36% in 2015 |
| Percentage of heated homes using a heat pump | 12% in 2015 |
| Percentage of US homes using electricity for their main water heater | 46% in 2015 |
| Percentage of US homes using two or more energy sources | 75% |
| Energy uses in homes that require electricity | Water heating, lighting, refrigeration, air conditioning, cooking, clothes dryers, swimming pools, hot tubs, televisions, computers, tablets, smartphones, video game consoles, internet streaming devices |
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What You'll Learn
- Cost-effectiveness: Electrifying homes saves money as fossil fuels get expensive
- Climate change: Electricity is a cleaner energy alternative to fossil fuels
- Convenience: Electricity powers more devices than other energy sources
- Energy efficiency: Heat pumps are more efficient than traditional heating systems
- Energy transmission: Power stations and grids transmit electricity over long distances
Cost-effectiveness: Electrifying homes saves money as fossil fuels get expensive
Electricity is used in almost all homes, and retail electricity purchases accounted for about 44% of total residential sector end-use energy consumption in 2020. The growing number of all-electric homes in the United States, currently at 25% of homes nationwide, is due to several factors, one of which is cost-effectiveness.
Electrifying homes can save money as fossil fuels become more expensive. A report by the American Council for an Energy-Efficient Economy (ACEEE) found that electrifying US homes could save up to $96 billion in energy costs. Electrification is particularly beneficial for lower-middle-income (LMI) households, which tend to have higher energy costs and inefficient systems. By targeting water heating and space heating, LMI households can maximize their savings. Additionally, the avoided cost of not installing fossil fuel infrastructure further supports the cost-effectiveness of electrification.
The New Buildings Institute's (NBI) "Cost Study of the Building Decarbonization Code" analyzed the cost and life cycle cost of all-electric and mixed-fuel buildings. The study found that all-electric single-family homes were $7,500 to $8,200 cheaper to construct than baseline code homes. Electric-ready construction, which allows for simple, low-cost electric technology installation in the future, saves homeowners thousands of dollars compared to retrofitting. Additionally, RMI's analysis of all-electric, single-family new construction found that these homes are more economical to build and operate than homes with gas appliances, with lower lifetime emissions.
While electrification can lead to higher utility bills in certain areas due to the cost of electricity, it is still more cost-effective in regions with time-of-use rates, where electricity rates fluctuate based on demand. Electrifying during new construction is also more cost-effective than implementing electrification readiness in existing buildings. Overall, the cost savings of electrifying homes are significant, especially when considering the societal benefits of reduced carbon emissions and improved health outcomes for vulnerable communities.
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Climate change: Electricity is a cleaner energy alternative to fossil fuels
Electricity is essential for modern life, with lighting, refrigeration, and water heating as year-round home energy uses. In 2020, these three uses alone accounted for 25% of total annual home energy consumption. In the same year, retail electricity purchases accounted for about 44% of total residential sector end-use energy consumption.
Electricity is generated at a power station, which could be hundreds of miles away from the end user, and transmitted through the electrical transmission and distribution system, also known as the power grid. Generating stations are connected through this electrical system, allowing electricity to be shared when needed.
Fossil fuels such as coal, oil, and gas are the largest contributors to global climate change, accounting for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions. To avoid the worst impacts of climate change, emissions need to be reduced by almost half by 2030 and reach net-zero by 2050.
Renewable energy sources, such as solar, wind, water, waste, and geothermal energy, are naturally replenished and emit little to no greenhouse gases or pollutants. They are accessible in all countries and can help countries diversify their economies, protect themselves from unpredictable fossil fuel price swings, and promote inclusive economic growth. Renewable energy sources are also typically faster to deploy and have lower emissions over their lifetime than fossil fuel plants.
Cheap electricity from renewable sources could provide 65% of the world's total electricity supply by 2030 and decarbonize 90% of the power sector by 2050, helping to mitigate climate change. As such, transitioning to renewable energy sources is key to a safer, cleaner, and more sustainable world.
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Convenience: Electricity powers more devices than other energy sources
The electrification of homes is a significant step towards addressing climate change and reducing carbon emissions. As of 2020, around 25% to 26% of US homes, or over 32 million houses, relied solely on electricity for their energy needs, a number that is expected to increase. This shift towards electrification offers both environmental and financial benefits.
Electricity is a versatile energy source that can power a wide range of devices and appliances in the home. It is used for lighting, refrigeration, and water heating, which are considered essential in most households. In 2020, these three uses alone accounted for 25% of total annual home energy consumption. Electricity is also used for various consumer electronics, including televisions, computers, tablets, smartphones, and gaming consoles, which make up an increasing share of household energy use.
The convenience of electricity in the home extends beyond its ability to power a diverse range of devices. Electricity is readily available and can be generated from various sources, including solar, wind, coal, natural gas, and hydropower. The electricity generated at power stations is then transmitted through a network of transmission and distribution lines, ensuring a consistent supply to homes. This infrastructure allows for a continuous power supply, making electricity a reliable and convenient energy source for households.
Moreover, electricity offers flexibility in terms of space and usage. It powers essential appliances without requiring extensive installations or setups. Unlike other energy sources that may require dedicated spaces or setups, electricity can be easily accessed through outlets and switches, making it a space-efficient option. This convenience and accessibility of electricity have likely contributed to its widespread adoption in households.
The use of electricity in homes also offers some degree of control and customisation. With electricity, homeowners can adjust lighting levels, temperature settings, and appliance usage according to their preferences and needs. This level of control is particularly advantageous for energy management and can contribute to overall cost savings. Therefore, the convenience, versatility, and accessibility of electricity make it a preferred choice for powering a wide range of devices and appliances in modern households.
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Energy efficiency: Heat pumps are more efficient than traditional heating systems
Electricity is used in almost all homes, with 25% of US homes using only electricity to meet their energy needs. The share of all-electric homes has been rising, particularly in the Midwest and South. This is due to changes in the types of equipment used in homes and faster population growth in warmer climates.
Heat pumps are an energy-efficient alternative to furnaces and air conditioners. They use electricity to transfer heat from a cool space to a warm space, making the cool space cooler and the warm space warmer. During the summer, heat pumps move heat from inside a house to the outdoors, and during the winter, they transfer heat from the outdoors into a house. Heat pumps are therefore more energy-efficient than traditional heating systems, which burn oil or gas to generate heat, rather than simply transferring it.
The most common type of heat pump is the air-source heat pump, which transfers heat between a house and the outside air. This type of heat pump can reduce electricity use for heating by up to 75% compared to electric resistance heating. Heat pumps are best suited to warmer climates, where they can be used for both heating and cooling. In colder climates, heat pumps may struggle to extract enough heat from the outside air, and an additional heating source may be needed. However, advancements in heat pump technology have resulted in the development of cold climate heat pumps, which can operate in temperatures as low as 5°F.
Dual fuel systems, which combine a furnace with a heat pump, can offer enhanced efficiency and savings, particularly in certain climates. For example, pairing a gas heater with an air-source heat pump creates two heat sources, and the system will determine the most efficient option based on the outdoor temperature.
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Energy transmission: Power stations and grids transmit electricity over long distances
The use of electricity in homes has become increasingly common, with a growing number of homes in the United States being all-electric. Electricity is used for a variety of purposes, including water heating, lighting, refrigeration, and powering electronic devices.
The electricity that powers our homes comes from power stations or generating stations, which are connected through an electrical transmission and distribution system, also known as the power grid. This grid consists of thousands of miles of high-voltage power lines and millions of miles of low-voltage power lines, connecting power plants to customers across the country.
Power stations produce electricity at a relatively low voltage, which is then stepped up by transformers to a higher voltage for long-distance transmission. This process reduces energy loss due to resistance over long distances, making it more efficient and less expensive. High-voltage direct current (HVDC) is commonly used for transmitting power over long distances, especially when connecting asynchronous grids or in submarine power cables.
Once the electricity reaches a substation near its destination, the voltage is stepped down to a safer level for local distribution. This electricity is then carried by power lines to homes and businesses, where it is further reduced to a suitable voltage for everyday use.
The power grid is designed to balance demand and generation. If one generating station cannot meet the demand, another station can send power where it is needed. This flexibility ensures a stable supply of electricity to consumers.
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Frequently asked questions
Electricity is a convenient and versatile energy source that can power a wide range of household appliances and devices.
Lighting, refrigeration, water heating, air conditioning, cooking, and powering electronic devices like televisions, computers, and smartphones.
The number of all-electric homes has been increasing. In 2015, 25% of US homes used only electricity, and that number has likely grown since. Homes are also using more electricity due to larger sizes, larger household sizes, and increased use of electronic devices.
Electrification can help address climate change by reducing the use of fossil fuels and saving money on energy costs over time.
Electricity is generated at power stations using fuel sources like solar, wind, coal, natural gas, or hydropower. It then travels through transmission lines and distribution lines to our homes, where it powers our devices through closed circuits.
