New Report: All-Electric Building Act Will Save New Homeowners $1,300+/Year

ALBANY, NY (10/17/2025) (readMedia)-- Today, nonprofit think tank Switchbox released a new report that shows households in newly-built, all-electric single-family homes will save an estimated $1,360 per year. The report comes just a few months before the All-Electric Building Act (AEBA) takes effect on Jan 1, 2026, and breaks down estimated household savings into three different regions based on climate and existing home heating sources. Residents in some regions will save an average of $2,380 every single year compared to those living in similar homes using fossil fuels.

Read the full report here.

"With just weeks until the All Electric Building law takes effect, this report confirms that transitioning our state to all-electric heating sources will save families real money every single year," said Juan-Pablo Velez, Executive Director at Switchbox. "The data is clear: the AEBA will soon make new homes more affordable for New Yorkers."

Today, the vast majority of homes in New York State still rely on natural gas and propane for home heating. Once the All-Electric Building Act takes effect in January 2026, all new homes will be required to use all-electric heating sources.

According to the report, New Yorkers living in all-electric single-family homes will see major savings compared to those still using gas or propane regardless of where they live:

• Catskills, Mohawk Valley, and Adirondacks residents will save an average of $2,380 each year. This area will see the largest savings of any region in the state, in large part because of the colder climate and homes are currently being built to use expensive propane.
• New York City, Long Island, and Westchester County residents will save an average of $1,230 each year.
• Hudson Valley, Capital Region, and Western New York residents will save an average of $960 each year. This area includes the majority (52%) of the state's new construction, impacting millions of New Yorkers.

The report also shows how savings will vary by fuel type used in existing homes. Households in newly-built homes that would otherwise have been built with natural gas hookups will save $610 per year on average, while those that would have been built with propane will save $2,930 per year on average.

To estimate average annual savings for New Yorkers, the report compares the total annual costs of living in newly-built, all-electric single family home-including both equipment and operating costs-with the same home using gas or propane heating, showing the estimated difference homeowners will see once the All-Electric Buildings Act is in effect.