New American Gas Foundation study shows that high-efficiency natural gas appliances can reduce residential emissions and household energy costs

As Americans face rising costs and growing demand for reliable energy, a new study conducted by Roland Berger for the American Gas Foundation finds that high-efficiency natural gas appliances for space heating, water heating, cooking and drying for residential and small commercial customers offer a practical, cost-effective way to reduce greenhouse gas emissions while helping families and businesses keep energy affordable and dependable.

The study finds that high-efficiency natural gas appliances which leverage existing infrastructure can help lower energy costs and reduce emissions, with widespread adoption cutting residential and commercial emissions - supporting America's energy affordability, reliability and climate goals.

"Preserving energy affordability and reliability is a top priority, especially in this moment, but we can't forget about the role natural gas is also playing in reducing emissions," said Karen Harbert, President and CEO of the American Gas Association. "This study shows that improving the efficiency of direct-use natural gas technologies can help achieve emissions reductions while keeping energy affordable and reliable for American families, businesses and communities."

High-efficiency natural gas appliances and technologies reduce emissions and strengthen energy reliability

The research highlights several ways high-efficiency natural gas technologies can support a reliable, affordable and lower-emission energy system:

• Widespread adoption of high-efficiency natural gas technologies could reduce residential emissions by more than 20% at a low cumulative abatement cost of $5-$30 per metric ton of carbon dioxide-equivalent.
• High-efficiency residential gas furnaces can provide 14% abatement at a net savings of $49 per metric ton of carbon dioxide-equivalent.
• In the small commercial sector, high-efficiency natural gas technologies can achieve a 19% reduction in emissions while delivering net savings of $105 per metric ton of carbon dioxide-equivalent.
• During periods of peak energy demand, the direct-use of natural gas helps reduce strain on the electric grid, providing an added layer of reliability for homes and businesses.

Increased natural gas efficiency helps protect affordability

The research shows that high-efficiency natural gas appliances can help lower energy costs while remaining a preferred choice for many consumers:

• The study finds that electric options can have higher emissions-reduction costs, with pathway-level costs reaching $35-$58 per metric ton of carbon dioxide-equivalent reduced.
• Higher costs are driven in part by increased equipment and installation expenses in colder regions, where higher heating needs and backup systems may be required.

These findings align with other AGA research on the affordability of natural gas where it was found that families who use gas for cooking, space heating, water heating and clothes drying save an average of $1,030 per year.

Reducing emissions requires a diverse set of energy solutions

The study reinforces that there is no one-size-fits-all solution to reducing emissions across the United States:

• Regional differences in climate, energy prices, infrastructure, housing stock and installation complexity all affect which technologies are practical and cost-effective.
• Even when local or regional policies incentivize electrification, modeled households choose natural gas.

This role of natural gas in contributing to cost-effective emissions reductions aligns with data from the U.S. Energy Information Administration demonstrating that the use of natural gas plus efficiency and the growth of renewable energy have led to energy-related carbon dioxide emissions hitting 40-year lows.

Read the full report here.