Commercial building decarbonization and strategic electrification are major topics of conversation in the U.S. HVAC industry, especially with new regulations and industry standards being introduced at the federal, state and local levels.

The buildings sector contributed more than one-third of total U.S. greenhouse gas emissions in 2021, with HVAC comprising 38% of buildings’ energy consumption. The HVAC industry must make a concerted effort to do better not only because of increasingly available incentives, but because it is the right thing to do.

The U.S. Department of Energy recently helped develop the  “Decarbonizing the U.S. Economy by 2050: A National Blueprint for the Buildings Sector,” (tinyurl.com/yrasebbk) to introduce a national strategy for aggressively reducing building greenhouse gas emissions while delivering equity, affordability and resilience benefits to communities. The blueprint intends to reduce greenhouse gas emissions in U.S. buildings 65% by 2035 and 90% by 2050 compared to 2005. 

The Inflation Reduction Act of 2022 is the largest climate investment by the federal government in American history. It incentivizes building owners, architects and homeowners by supporting their decarbonization and electrification efforts. Moreover, the IRA recognizes the critical role of highly efficient, variable-capacity heat pumps in reducing domestic greenhouse gas emissions and lowering energy costs for Americans.

Let’s discuss the driving forces behind commercial building decarbonization, the preferred technology for strategic electrification, and the HVAC industry’s role in the green movement.

Incentives Differ

The catalysts for commercial building decarbonization and strategic electrification vary across the country. For example, New York City and some surrounding areas have implemented natural gas bans for new building construction projects. In other nearby areas, building owners are promoting decarbonization independently without any incentive to do so. 

Different areas offer different approaches to incentivizing. Some regions ban permits for natural gas construction, impose fines for GHGs that exceed a certain level, provide rebates for using strategic electrification technology or some combination of those methods. Incentive tactics differ across the nation, with some states implementing numerous regulations while others have little to none.

The HVAC industry has become increasingly aware of the ramifications that come with failing to build intelligently and recognizes its responsibility to contribute to the decarbonization and strategic electrification movement.

Constructing a building that minimizes its carbon footprint and reduces reliance on fossil fuels is often less expensive than one that relies on fossil fuels and higher GHGs. Decarbonizing a building offers multiple benefits, such as the ability to avoid penalties, the option to obtain rebates and the accruement of savings on energy costs. Additionally, there is great marketing value in the construction of a green building.

Benefits of VRF

Strategic electrification goes beyond incorporating electric strip resistance heaters throughout a building. The most efficient way to generate heat using electricity in a building is using variable refrigerant flow heat pump systems. 

All-electric VRF technology is the fastest-growing segment of the commercial HVAC industry. Fossil fuel-free VRF heat pump systems:

• Provide heating and cooling to virtually any building, so savings are made by installing one system instead of two.

• Are the most energy-efficient cooling systems on the market.

• Decrease operating costs in heating mode, since they are considerably more efficient than electric strip resistance heat. 

• Divide buildings into zones that can be customized for comfort and energy efficiency.

• Offer a more environmentally friendly and effective way to heat and cool buildings.

Building owners will have a differing amount of savings based on building type, the kind of system chosen, and other factors. A reputable and knowledgeable HVAC manufacturer who is well-versed in VRF systems can guide building owners and engineers toward potential savings.

It’s important to point out that heat pumps are not limited to space conditioning. A new advancement in the heat pump industry found that heat pumps can be used to generate domestic hot water for entire buildings. The possibilities for DHW heat pump systems are numerous and are expanding regularly. 

Options Abound

Because building construction is getting tighter, building owners and engineers should consider providing fresh air to occupants. Several options address this issue, like  rooftop Dedicated Outdoor Air Systems or indoor air handlers designed to condition 100% outdoor air to ERVs.

Reputable providers of VRF heat pumps, heat pump water heaters and HVAC-related products have these options covered. These providers can help building owners, engineers, and HVAC contractors select the optimal system and find a balance between initial and operational costs.

The HVAC industry should take advantage of more energy-efficient options when designing buildings to minimize the impact on the current infrastructure and reduce our carbon footprint. By moving toward these high-efficiency products, we are decreasing our collective reliance on fossil fuels and the associated GHGs, making sure to be aware of how these products will impact the greater population.

As the legislation to eliminate fossil fuels increases in favor of electrification, building owners, engineers, and HVAC contractors have the power to decarbonize commercial buildings using all-climate, all-electric technology, including VRF solutions and heat pump water heaters.

Once the owner sees the numerous benefits of decarbonization and strategic electrification, engineers will want to provide an HVAC product that is highly efficient, easy to design, reliable, and readily available. VRF systems check all the boxes that HVAC contractors look for, such as simple installation, cost-effectiveness, and support.

Many contractors have realized that embracing VRF and ensuring their entire installation team is properly trained means they can install projects more quickly. When done right, they’ll rarely need to revisit the jobsite again. This faster pace of project completion means that contractors can move on to more new projects, which adds more money to their bottom line. VRF is not only beneficial to building owners, but also to the installing HVAC contractors.

For all parties, embracing the decarbonization and strategic electrification movement can afford many benefits, some financial, some social, and some environmental.

As regional commercial sales manager for METUS, George Wehnert works closely with NYC Metro Area distributors, consulting engineers, contractors and building owners in designing and specifying heat pump systems for comfort cooling and domestic hot water generation for commercial buildings and residences.