Electrification for Small Businesses

You may be familiar with building electrification as a common buzz phrase, but it's more than that. Electrification will play a key role in powering a sustainable future. Here is some information on the impact of building electrification for small businesses.

The Economy for Electrification

As the City of Los Angeles and LADWP advance ambitious clean energy goals, electrification has emerged as a central strategy for transforming how businesses power their operations. Sustainability remains a cornerstone of our mission. To support that commitment, we offer a range of incentive and rebate programs designed to help commercial customers, like you, make the transition away from fossil fuels and toward cleaner, more efficient electric systems.

What Building Electrification Means for Your Business

The U.S. Department of Energy defines electrification as converting energy-consuming equipment from non-electric sources to electricity. For commercial customers, building electrification typically involves replacing natural gas-powered systems with high-efficiency electric alternatives.

Many businesses rely on natural gas for space heating, water heating and cooking. Electrification replaces these systems with technologies such as heat pumps for heating and cooling, electric water heaters, and induction cooktops. These systems are not only more energy efficient than their gas-powered counterparts, but they are also compatible with a cleaner, renewable-powered electric grid.

Understanding electrification means looking at the full picture: the available technologies, the real challenges, and the enduring benefits.

LADWP’s Role in LA’s Electrification

Our commercial incentive programs are designed to make electrification more financially accessible. On its face, the model is straightforward: customers receive financial support to replace gas-powered equipment with electric alternatives. However, the process involves more than a simple swap. To qualify, customers work with us to assess their current energy use, identify opportunities for improvement, and properly retire their existing gas-powered systems.

We acknowledge that electrification can present challenges. Upfront equipment costs, technical complexity of retrofitting older buildings, and equipment availability can all pose barriers. With the right support and information, these challenges can be effectively managed; and the long-term benefits often outweigh the initial investment. We remain committed to supporting you throughout every stage of the transition.

Benefits Beyond the Energy Bill

While financial incentives play an important role, the advantages of electrification extend well beyond immediate cost savings. These benefits accumulate over time and can strengthen both business performance and workplace conditions.

• Energy Savings. Actual energy savings vary depending on the type and size of the business, but LADWP works with customers to estimate potential reductions based on current usage and planned upgrades. While projections provide a useful benchmark, verified savings are confirmed after equipment installation and consumption review.
• Improved Indoor Air Quality. For small businesses, particularly those in the food industry, indoor air quality is a significant consideration. Unlike gas appliances, electric systems do not produce combustion emissions indoors. The result is a healthier environment for staff and customers alike, reduced exposure to pollutants, and improved overall comfort. In a restaurant setting, a more comfortable dining environment can directly enhance the customer experience.
• Environmental Impact. Electrification reduces reliance on fossil fuels and lowers its overall carbon footprint. For Los Angeles businesses, this contributes to improved air quality across the Los Angeles region and supports the city’s broader climate commitments.
• Safety. Electric systems eliminate the risks associated with gas leaks, combustion and the potential for explosion. This added level of safety is a critical consideration in protecting both employees and the public.
   

Spotlight: Food Service Program

Our Food Service Program offers commercial kitchen operators the opportunity to upgrade to new energy-efficient equipment through targeted rebates. Eligible equipment includes ovens, griddles, steam cookers and other essential kitchen systems.

Rebate amounts vary by equipment type, and our staff is available to help you identify upgrades that offer the greatest efficiency gains and financial return. In one case, a participating restaurant reduced electricity costs by more than $2,380 while eliminating ongoing maintenance expenses associated with natural gas boilers and ovens. (Restaurants – LADWP Empowering Small Business).

Taking the Next Step

Electrification is not a one-size-fits-all solution. We partner directly with you to understand your unique operational needs and identify options that make both technical and financial sense. By aligning practical business goals with sustainable strategies, LADWP helps customers strengthen their bottom line while contributing to a cleaner and more resilient Los Angeles.