California is moving towards a system which would introduce a monthly fixed cost based on your income, while simultaneously decreasing the cost of electricity per kWh (see: AB 205). Heat pumps become more attractive after such a change.
My claim wasn't that an Income Graduated Fixed Charge would make your electric bill go down from what it currently is -- it could very well go up.
My claim is that, assuming an IGFC is implemented and the marginal cost of electricity goes down considerably, then a heat pump becomes cheaper to operate. You'll be paying the same fixed cost to be connected to the grid, whether you have a gas furnace or an electric heat pump. It might just be that the newly-lowered electric rates finally make a heat pump more cost-effective than a gas furnace.
Wait, so once they set your rate you can use as much electricity as you want and still pay the same rate?? That's insane. Crypto miners and EV drivers rejoice.
Not quite. Right now, (most) California residential electric bills are entirely volumetric, meaning that you pay for what you use — if you use zero, you pay (close to) zero. Under the new system, everyone’s bill will instead have a sizable fixed component (determined by household income) for being connected to the grid, and a volumetric component (determined by the amount that you use). The new price per kilowatt hour will be smaller than the existing rates.
pxmpxm|2 years ago
curriculum|2 years ago
My claim is that, assuming an IGFC is implemented and the marginal cost of electricity goes down considerably, then a heat pump becomes cheaper to operate. You'll be paying the same fixed cost to be connected to the grid, whether you have a gas furnace or an electric heat pump. It might just be that the newly-lowered electric rates finally make a heat pump more cost-effective than a gas furnace.
talldatethrow|2 years ago
curriculum|2 years ago