New York’s plan to steer homeowners and landlords toward electric heat could backfire due to high costs and practical concerns, according to a new study from the Empire Center for Public Policy.  

In Cold Reality: The Cost and Challenge of Compulsory Home Electrification in New York, Empire Center fellow James Hanley looks at the state’s plan to prohibit homeowners from replacing gas and oil furnaces after 2029 and for them to instead install heat pumps. Homeowners, he explains, face both higher equipment costs and potentially high weatherization costs to accommodate heat pumps, which can operate at lower monthly costs but require better insulation. 

Even with extensive state and federal subsidies, Hanley warns, the upfront price-tag of heat pumps and weatherization will likely push homeowners to instead buy low-cost but energy-hungry electric furnaces that will put considerably greater stress on the electric grid—making the state’s overall electrification goals harder to reach. 

“This is the fundamental problem at the heart of New York’s command-and-control attempt to restructure its economy to make what amount to barely detectable reductions in global emissions,” said Hanley. “Albany can ban things, but it can’t control how people replace them.”

Hanley notes that the impact of this policy will be felt most in rural New York, where the median household income of owner-occupied homes is the lowest, and points out that the state could instead reduce emissions by setting clean fuel standards that encourage the use of biofuels.

You may also like

The Empire Center Reacts to Governor Hochul’s Budget Address

In response to the release of Governor Hochul’s executive budget proposal for fiscal 2027, the Empire Center issued the following comment: "It should go without saying that rejecting further tax hikes – in what's alr Read More

Empire Center Warns of Sharp Increase in New York Electricity Prices

New York households pay some of the highest electricity prices in the nation, raising affordability concerns, according to the Empire Center's and the U.S. Energy Information Administration . Read More

Empire Center Experts React to the 2026 State of the State

In response to Governor Hochul’s State of the State address and policy book, Empire Center experts issued the following reactions: On taxes: "Governor Hochul's promise to hold the line against tax hikes is crucial to restoring New Read More

New York’s Education Shows Improvement, but Questions Remain

In the effort to improve transparency and accountability of New York’s education system, the Empire Center has sys Read More

Empire Center Releases NYC BERS Pension Data for FY2025

Pension payments to during fiscal year 2025 were added today to the Empire Center’s transparency website. The data primarily cover school support staff and administrative personnel. The BERS paid a total of $351 million in pension payments Read More

Newly Retired NYPD Retirees Average $100,000+ in Pension

Newly retired1 “full career”2 members of the New York Police Department (NYPD) collected an average of $103,859, according to , the Empire Center’s transparency website. The data, received from the New York Read More

Empire Center Calls for Release of PPL Records

The Empire Center is calling on the Hochul administration to promptly release records of its spring 2024 communications with Public Partnerships LLC, the company that later won a controversial $1 billion contract under Medi Read More