Overcoming the Building Electrical Capacity Hurdle Towards Decarbonization

BONDI’S Solution | Differential kWh Transferrable Rebate

Buildings are a leading contributor to greenhouse gas emissions in North America. Governments are committed to decarbonizing by pushing building owners to electrify their gas-heated buildings by retrofitting with energy-efficient heat pumps.

THE PROBLEM

Fuel switching by replacing a gas-heated legacy boiler with energy-efficient heat pumps often requires the utility provider to increase the electrical capacity of the building.

The utility provider charges a **high upfront capital cost** to the building owner to increase **electrical grid capacity** from the transformer to the building, thus disincentivizing heat pump retrofits, electrification and decarbonization.

Conversely, once this costly infrastructure is installed, the utility provider has a **low variable electric generation cost** to generate and transmit electricity.

THE SOLUTION

Bondi proposes that **utility providers support the electrification transition** by leveraging their low variable electric generation costs to offer **rebates** to building owners who are footing the upfront infrastructure costs.
This proposed kWh Transferrable Rebate **would continue to allow utility providers to pass the upfront capital risk to the building owner**, remove the bottleneck to electrification, and increase electrical capacity on the grid, all while creating future revenue and meeting their government’s net zero mandates.

Bondi Energy would like to engage with the local government, utility providers and stakeholders in your city to initiate a Differential kWh Transferrable Rebate Program to further increase the adoption of heat pump retrofits, building electrification and decarbonization.

How it Works

The building owner pays the full capital infrastructure cost to increase electrical capacity.
kWh Transferrable Rebate: The utility company provides a monthly rebate equal to the differential kilowatt-hour increase in electric capacity (from the pre-retrofit baseline), until the full upfront high fixed infrastructure cost is recuperated.
This proposed kWh Transferrable Rebate can be assigned to lenders, allowing building owners to attain better financing for the infrastructure upgrade, or transfer with the title.

For a more in-depth conversation on how to socialize and implement this proposed Differential kWh Transferrable Rebate Program in your area please contact:

Belinda Gilbey, Co-founder and President (belinda@bondicorp.com)

Aaron Graben, Co-founder and Vice President (aaron@bondicorp.com)