The U.S. energy market is transforming rapidly. Homeowners are no longer just paying monthly utility bills—they’re becoming active participants in energy transactions. Consumers are reshaping home energy management for cost savings and resilience, from installing solar panels and battery storage systems to adopting heat pumps and EV chargers.
Home electrification trends by the numbers
- 55% Increase: Electric-powered heat pumps outsold traditional natural gas furnaces in 2023, capturing the majority market share.
- 35% Growth: Shipments of hybrid electric (heat pump) water heaters surged in 2023, reflecting their rising adoption.
- 7.3% Annual Growth: Induction cooktops are gaining popularity, with projected sales growth through 2030.
- 10%+ of Auto Sales: Electric vehicles (EVs) made up over 10% of total U.S. auto sales in 2024, with projections reaching 20% by 2030.
- 5%+ Solar Adoption: More than 5% of U.S. homes now have solar panels, with California, Texas, and Arizona leading the way.
- 63% Quarterly Jump: Residential energy storage sales skyrocketed in Q3 2024 compared to Q2, per Wood Mackenzie research.
The utility perspective: Electrification beyond consumers
Electric utilities are embracing home electrification, not just for increased kilowatt-hour sales but also for better grid management. Some, like Vermont’s Green Mountain Power, provide financial assistance for battery installations—even without solar— to encourage the use of stored power instead of expensive fuel-fired generators during peak demand.
More electrification, more complexity
Adding EV chargers, heat pumps, and induction ranges increases a home’s electrical load—and complexity. Traditional electrical panels were designed for lighting, appliances, and basic electronics. Now, with gas-powered systems being replaced, homes need smarter power management solutions.
Key challenges include:
- Load Balancing & Circuit Protection: EV chargers, heat pumps, and induction ranges must be carefully managed to prevent overloading.
- Bidirectional Power Flow: Solar panels and battery systems require panels that safely handle incoming and outgoing power.
- Backup Power Integration: Ensuring seamless operation during grid outages requires new interconnection guidelines.
NEC 2023 code changes: Smarter Home Energy Management Systems (EMS)
Home energy management systems (EMS) bring advanced functionality once exclusive to commercial buildings into homes, optimizing energy use. The 2023 National Electrical Code (NEC), released in August 2022, now officially incorporates EMS technology, enabling homeowners to:
- Manage Loads Dynamically: share power between EV chargers, heat pumps, and water heaters to avoid overloading.
- Optimize Peak Demand: shift power-hungry tasks, like water heating, to off-peak hours.
- Enhance Solar & Battery Efficiency: Decide when to store excess solar energy and when to send it back to the grid.
- Integrate Smart Devices: Coordinate operations of thermostats, water heaters, and EV chargers for scheduled charging.
Looking ahead: NEC 2026 and the future of home energy
NEC 2023 code changes introduced key updates to load calculations, backup power integration, and renewable energy interconnection. But innovation doesn’t stop here. The 2026 NEC edition, expected later this year, will refine these guidelines to keep pace with emerging electrical technologies.
Stay tuned for deeper dives into NEC updates and their impact on home energy management. Click to learn more about Schneider Electric’s smart electrical solutions.
The information in this blog is for educational purposes only and does not replace professional advice. Proper training and relevant certification are essential before undertaking any electrical work.
Working with electricity can be hazardous without a thorough understanding of the National Electrical Code (NEC). Always follow the latest NEC regulations applicable in your state when working with electricity.
For more information on the NEC, please visit the National Fire Protection Association (NFPA) website.
Add a comment