In January 2024, Newlab member Pearl Edison, in collaboration with Michigan Central, Newlab, and Google Nest, launched the "Equity in Electrification" program to address energy efficiency challenges in Detroit. The pilot supported >30 low-income homeowners by installing efficient air-source heat pumps. Focusing on tangible benefits, the goals of this pilot were to reduce bills and increase in-home comfort.

Key learnings included:

1. Today, the process of home electrification can be unpleasant for homeowners–and the unit economics are rarely compelling for contractors. Rebates can help ease the transition for homeowners, but they cannot exist in a vacuum.
2. While home electrification is an important step in driving residential energy efficiency, retrofits are not always ideal for energy-burdened, lower-income households. Not all homes are “electrification-ready” – this distinction is important when defining the goals and deliverables of a home electrification program. 
3. It’s not always easy for homeowners to determine whether a contractor is qualified and trustworthy, which can often lead to bad installs. As a result, there is a widespread distrust in contractors. Ensuring contractor training is a key component of moving home electrification initiatives forward.

The pilot program's success underscores the necessity of balancing cost, complexity, and accessibility in promoting energy-efficient HVAC solutions. Pearl Edison’s insights offer invaluable guidance for policymakers, contractors, and stakeholders in the energy efficiency ecosystem, emphasizing the importance of equitable access to sustainable tech.

For more details, visit Pearl Edison's blog.

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