Gas water heater and furnace phase-out plan to cost consumers
A new push in the Bay Area to phase out natural gas furnaces and water heaters is getting some scrutiny as it comes with hidden costs for homeowners.
Chris Guslani has been in the water heater business for decades. He says in all that time not much about the industry has changed until this year when regulators voted to phase out natural gas water heaters and furnaces beginning in 2027.
"So the issue I think people are going to have is the increased cost of having an electrician come and run electrical from the electrical box to the site of the water heater," said Guslani. "That's a whole new expense that they have ... where they're just changing out from a regular gas water heater to a regular gas water heater."
Guslani owns Bay Area Water Heaters. He says currently 99% of their water heater installations are gas. Guslani worries forcing people to eventually switch to electric could not only impact the cost but also the quality.
• READ MORE: Air District approves phasing out new natural gas furnaces, water heaters
"Electric water heaters don't heat up as quickly as gas water heaters do," said Guslani.
The other concern is the amount of electricity used by electric water heaters and furnaces. Ronan Mulholland, owner of Mulholland Electric, says an electric furnace and water heater combined can use more than 100 amps of energy.
"I believe they go from about 40 to about 100 amps for the electric water heaters and furnaces I think are like 60 to 80," he said.
Mulholland says that can be a problem for older homes that may only have a 200-amp electrical panel. The change could require those homeowners to upgrade their entire electrical system which would cost thousands.
"If every home in San Francisco has to do it, it would be, like it's going to be a huge undertaking, a huge amount of work," said Mulholland.
John Bauters is the mayor of Emeryville and also the chair of the Bay Area Air Quality Management District Board of Directors, who voted on this new regulation to phase out gas water heaters and furnaces. Bauters said he has heard the concerns from those in the industry and is working to make this transition as smooth as possible.
"If the transition is not ready for one or more reasons the board can continue the implementation date by a year or two at a time as it deems appropriate to ensure that we have all of the pieces in place to make sure the transition is a safe and equitable one," said Bauters.
PG&E also sent a statement saying it is supportive of the board's plan and is working to update and prepare its electrical grid to handle an increase in electricity use.
Still, reaction to the change within the industry is mixed. Guslani and Mulholland have slightly different takes, but both say cost is a worry.
"I mean I think it's good environmentally. I know they're more efficient," said Mulholland. "For homeowners, they're probably going to be worried about the cost of it."
"I'm against it," said Guslani. "I think in the long run it's going to cost our customers more money just to get a water heater done."
The new regulation is slated to begin phasing in by 2027 and gradually continue through 2031.
