New Build vs Retrofit: The Economics of Electrification

A new build involves selecting systems before they are installed. A retrofit means deciding whether and when to replace equipment that is already working. Their relevant investment costs are not the same.

New build: compare price differences

For example, if a gas hot water system would cost 2,000 and an electric heat pump system 4,000, the additional investment is 2,000, not 4,000.

Retrofit: avoid sunk-cost mistakes

When an existing gas system works, the relevant near-term investment can be the full conversion cost. When it is near failure, compare the cost of replacing it with another gas appliance against an electric alternative.

Utility connections matter

New builds may face gas, electricity or other network connection charges. Verify availability and pricing directly with the utility; an address lookup cannot confirm capacity.