American Gas - February 2014 - (Page 31)

Despite the shale gas revolution, many natural gas features in homes are still treated as luxuries. What will it take to bring more gas to more homes? By jennifer pilla taylor h o u s i n g u p dat e gas for the masses E ach year, the International Builders' Show's New American Home exhibit showcases the epitome of luxury and energy efficiency in homebuilding and design. No wonder natural gas has long been a key feature. In recent years, innovations in gas heating, cooling, cooktops, grills, fireplaces, water heaters, and even vehicle fueling have played a leading role. In real-world new American homes, however, natural gas systems and appliances have sometimes struggled to gain traction. The positives of natural gas-lower operating costs and better performance- have not always managed to overcome hurdles like the higher costs of natural gas connections and appliances and limitations in infrastructure. But the American energy landscape has shifted dramatically. The natural gas revolution has led to lower and more stable prices, a renewed push for domestic energy independence, and a growing awareness of natural gas's environmental advantages. As a result, it may be reasonable to finally ask: Could the natural gas-fueled dream home become more of an American reality? It's Not Always Available The picture for natural gas has not always been pretty. Though more than half of the new homes built in the 1960s used natural gas as their primary heating fuel, by the 1980s, electricity had become the most popular choice for home heating, according to the U.S. Energy Information Administration. And electricity remains a common heating source in new construction. The biggest reason for this may lie in government policy. As the Center for Climate and Energy Solutions pointed out in a recent report, the federal government has pursued 100 percent residential electricity access for decades, through taxpayer- and ratepayer-funded grid extension programs. But including natural gas in a new community has been viewed as an option to be paid for by the developer. As a result, the report notes, of the 113 million primary residences in the U.S. in 2009, 99.5 percent had electricity, but only 61 percent had natural gas service. This has started to change, however, thanks to the shale gas revolution. State governments and utilities in several states-including Maine, Pennsylvania, and Connecticut-have introduced efforts to broaden natural gas access, citing its lower consumer costs and emissions. Consumers do prefer natural gas: a 2010 survey conducted by the consulting firm Woodland, O'Brien and Scott for the Energy Solutions Center indicated that more than 70 percent of new homebuyers said they preferred natural gas over electric for space heating, water heating, and cooking. While the preference was stronger in some areas, such as parts of the South, gas was preferred in every region. Still, gas remains something of a luxury item. Natural gas remains significantly less likely to be included in starter-home communities than it is in the move-up and luxury market, according to Home Innovation Research Labs, a homebuilders' research group. In 2012, 61 percent of the luxury homes built had gas cooking appliances, compared to just 38 percent of starter homes. More than two-thirds of move-up homes had gas heating, while only half of all starter homes while did. So far, the new energy landscape is having only a modest effect on the presence of natural gas in homes. In 2009, for example, 54.6 percent of single-family homes that were built used gas for primary or secondary heat, according to Home Innovation Research Labs. That percentage rose slowly, but steadily, to 58.7 percent in 2012. During the same period, the use of gas cooking appliances in new homes rose from 41 percent to 46 percent. But adoption of natural gas dryers actually dropped 3 percentage points, to 26 percent of new homes in 2012, perhaps a consequence of lower consumer awareness or higher costs for the appliance. "My belief is that the lower price of natural gas has been a primary driver" in the higher adoption of natural gas for some home uses, says Ed Hudson, market research director for the research group. However, he adds, "It takes some time for that to really take hold." Photo courtesy of nW nAturAl GAs february 2014 AmericAn GAs 31

Table of Contents for the Digital Edition of American Gas - February 2014

Contents

American Gas - February 2014