U.S. energy efficiency: VFD adoption and California electrification laws

Energy experts are highlighting the potential for variable frequency drives (VFDs) to alleviate U.S. electricity supply constraints. While electric motors in industrial and commercial sectors account for nearly one-third of total U.S. power demand, adoption of VFDs remains low. According to a 2021 report by Lawrence Berkeley National Laboratory, only 16 percent of industrial motor systems and 4 percent of commercial motors utilize these devices. Implementing VFDs could free up grid capacity for data centers and electric vehicles while reducing costs for factories transitioning to electrified solutions.

In California, new legislation known as the Home Energy Choice Act (Assembly Bill 2313) aims to facilitate residential electrification. The law requires utilities to offer households scheduled for gas service line replacements a choice: receive a new gas line or accept a financial incentive to transition to all-electric equipment. This incentive is designed to be less than the cost of line replacement, allowing the resulting savings to be shared among all gas customers.