Reports

The future of home heating in New York

May 26, 2026
Heat pump in home

How can New York reduce home heating emissions without driving up costs? Which approach gives households the most value? And what does each path mean for the energy system over time?  

Prepared by CRA Energy experts, the Hybrid Electrification Study compares hybrid and full electrification for single-family and multifamily homes across New York State and highlights the most important findings. 

Several observations stand out from the analysis: 

  • Hybrid systems can potentially play a role in the energy transition: Even if they are not always the best deal for each individual household, hybrid systems can still reduce stress on the grid in certain scenarios, helping to manage costs and maintain affordability. 
  • Going fully electric may cost less for many households, but existing heating fuel plays a key role: In many cases, the total cost of ownership of fully electric heating is cheaper for New York residents than adopting a hybrid system, particularly in homes that currently use oil or propane. For households that heat with natural gas, today’s economics often don’t pencil out for either full or hybrid electrification. This can vary in the future with meaningful changes in incentives, up-front cost, or relative energy prices. 
  • Costs and benefits depend on the home and location: What people pay can change based on where they live, the kind of home they have, and the fuel they use. Financial incentives are also important; without them, fewer people are likely to switch. 
  • Planning carefully will be important: If electrification is not rolled out in the right places and in the right way, costs could rise and results could vary across communities. A larger shift to full electrification would put more pressure on the system in winter. 

Using future scenarios through 2050, the study examines customer costs, potential adoption patterns, emissions, and impacts on the electric and gas systems, compared with simply replacing existing heating equipment at the end of its life. 

The full report provides the analysis behind these findings and considers the tradeoffs among customer costs, system impacts, and long-term affordability in New York. 

The Hybrid Electrification Study was commissioned by the Department of Public Service Staff, in consultation with New York State Energy Research and Development Authority and New York’s electric and gas utilities, to examine how hybrid electrification compares with full electrification for residential buildings in New York.