Converting to an all-electric home should save you some money.
Switching from gas appliances to electric will change your utility bill, decreasing what you pay for gas and increasing total electric charges. In general, most homes won't pay more after electrifying -- and many will save money. Below is a discussion on how individual appliance upgrades will likely impact your bill in the short term.
Heat Pump Water Heaters - In almost all cases, a heat pump water heater will save you money on your monthly utility bill, starting immediately. Because heat pump water heaters use existing heat instead of creating new heat, they are 300% efficient compared to a maximum of 95% for the most efficient gas tank water heaters. While it is true that electricity is more expensive than gas in California, the efficiency gain offsets this in most cases. (See here for a more detailed discussion of how appliance efficiency and utility prices impact costs.)
Heat Pumps (for space heating)- It has been our clients' experience that there is not a large cost impact either way of replacing a gas furnace with a heat pump. As with water heaters, heat pumps are more efficient than their gas counterparts, and the fuel cost differential largely offsets this.
Many clients save money after a proper heat pump installation because they:
1. Benefit from a duct tune-up with the installation.
2. No longer need to use inefficient electric space heaters.
A significant benefit of upgrading to a heat pump is the addition of efficient variable-speed air conditioning. Homes with existing air conditioning will likely save from the increased efficiency. Homes that are adding air-conditioning will, of course, see new costs associated with air conditioning (but also the benefits of a cooler, more comfortable home!).
Induction Cooking and Electric Drying - Your costs for switching to electric from gas for cooking and drying may rise slightly. However, these will remain a very small portion of your overall utility costs, and impacts on utility bills for most households will be negligible, if you notice them at all.
Predicting the future is difficult, but several there are several factors that suggest electrified homes will see additional savings over time.
1. The California Public Utilities Commission projects carbon emitting gas prices will rise faster than clean electricity prices, over the next decade, 6% vs. 3%.
2. Your ability to produce rooftop solar will allow you to produce electricity for lower rates than public utilities.
3. Utilities will almost certainly be changing their rate structures to reflect the extremely low cost of energy during daytime hours -- when there are increasing amounts of cheap solar energy on the grid. Electrified homes will have more options for shifting their usage to take advantage of these lower rates, leading to bill savings.
Finally, don't forget the valuable benefits of switching to electric appliances: safer, healthier, and more comfortable homes; decreased indoor and outdoor air pollution; increased home value from more modern appliances; and a livable future for all of us!