American Gas Foundation Study Highlights How Direct-Use Natural Gas Appliances Can Cut Emissions and Lower Energy Costs

With household energy costs remaining a concern and energy demand continuing to grow, policymakers and consumers alike are looking for practical solutions that balance affordability, reliability and emissions reductions. A new study released by the American Gas Foundation examines how high-efficiency direct-use natural gas appliances can help achieve these goals.
The research finds that using natural gas appliances at home can help lower household energy costs, support electric grid reliability and reduce residential and commercial emissions, while preserving the ability for families and businesses to choose the energy sources that make the most sense for them.
Lower Energy Costs Through Efficiency
Energy affordability remains a top concern for households and businesses across the country. The study finds that switching from natural gas to electric appliances can carry higher emissions-reduction costs, particularly in colder climates where additional equipment, installation expenses and backup systems increase overall costs.
These findings help underscore the importance of evaluating energy solutions based on regional conditions and real-world performance.
Supporting a Reliable Energy System
As demand for electricity grows, maintaining a resilient energy system is increasingly important. During periods of peak demand, direct-use natural gas can help alleviate strain on electrical grids, providing an added layer of reliability for homes and businesses.
By leveraging existing natural gas infrastructure alongside the electric grid, high-efficiency natural gas appliances can complement the broader energy system and help meet growing energy needs reliably, without putting additional strain on electric infrastructure.
Reducing Emissions Through Efficiency
In addition to supporting affordability and reliability, high-efficiency appliances use less fuel, which in turn can reduce emissions, without sacrificing performance or comfort for consumers. In fact, one of the study’s key findings is that widespread adoption of high-efficiency appliances could reduce greenhouse gas emissions by more than 20%, while achieving those reductions at a low cumulative abatement cost of $5-$30 per metric ton of carbon dioxide-equivalent.
The research also highlights how natural gas furnaces can provide a 14% reduction in emissions while delivering net savings of $49 per metric ton of carbon dioxide equivalent. Similar benefits were identified in the small commercial sector, where high-efficiency natural gas appliances can achieve a 19% reduction in emissions while also generating net savings.
Collectively, these findings demonstrate how efficiency improvements can help advance sustainability while maintaining affordable and reliable service.
The Importance of a Diverse Energy Future
The study emphasizes that there is no one-size-fits-all solution to reducing emissions across the country. Climate, energy prices, infrastructure, housing stock and installation complexity all influence which energy appliances are the most practical and cost-effective for different communities.
Even when local or regional policies incentivize electrification, modeled households continue to choose natural gas to best meet their needs. These findings highlight the importance of preserving consumer choice while recognizing the regional differences that require a diverse set of energy solutions.
As policymakers consider the nation’s energy future, the study underscores the importance of improving the efficiency of direct-use natural gas appliances and leveraging a range of energy solutions to support affordability, reliability and emissions reductions.
For more information, read the full report here.