Electrification of Heating
Orange & Rockland Utilities is deploying utility-owned ground source and air source heat pumps across residential and C&I customers in a three-year demonstration, with plans for at least one geothermal community ground loop serving new construction developments, prioritizing low- and moderate-income households. The project tests whether utility ownership of heat pump infrastructure removes customer upfront costs, drives third-party market participation, delivers gas and electric system benefits, and scales adoption through targeted outreach. O&R will study utility business models including rates, recovery mechanisms, incentives, and rebates to validate the economics and replicability of the approach.
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AI overview
Orange and Rockland Utilities, Inc. (O&R) is requesting information from qualified vendors with the capability to deliver innovative solutions for a demonstration project focused on the electrification of heating. The project will test whether utility ownership of heat pump technologies and/or infrastructure can provide savings to residential and/or commercial and industrial (C&I) customers and benefits to the electric and gas distribution systems, as well as reduce barriers to customer participation. The three-year demonstration project will consist of the deployment of utility-owned ground source heat pumps (GSHP) and air source heat pumps (ASHP) infrastructure, as well as the study of various aspects of utility business models including rates and recovery, incentives and rebates, and outreach and education. O&R anticipates the installation of at least one geothermal community ground loop infrastructure to support a new construction development for residential customers, preferably for low- and moderate-income (LMI) customers. The project aims to test four key hypotheses: 1) If utility ownership of heat pumps and other equipment/infrastructure can remove the burden of the upfront cost for customers and provide access to LMI customers; 2) If utility ownership results in and/or enhances third-party participation in the electrification of heating market; 3) If utility ownership of community ground loops, particularly for new construction, provides gas and electric distribution system benefits including the potential to support gas infrastructure needs, and the ability to allocate infrastructure costs favorably; and 4) If utility outreach and education favorably increases the deployment of the technology.
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Proposal Document
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