Equitable Beneficial Electrification (EBE) for Rural Electric Cooperatives

The report investigates 'beneficial electrification'—the replacement of fossil-fuel end-use equipment with electric alternatives to reduce carbon emissions and costs—within Midwest rural electric cooperatives. While 88% of these co-ops offer energy upgrade or loan programs, the research found no 'fully beneficial electrification program' in the Midwest that combines conversion incentives, a net carbon reduction goal, verification processes, and energy audits. The document highlights the potential of cold climate air-source heat pumps (ccHP) and heat pump water heaters to provide grid flexibility and member savings. It emphasizes 'equitable beneficial electrification' (EBE), advocating for inclusive on-bill financing that removes credit score barriers and attaches loans to the meter to support low-income members and renters. Case studies from cooperatives in Washington, Arkansas, North Carolina, and Minnesota illustrate various models of on-bill tariffs and community solar projects used to reduce energy burdens.

• The report defines a 'fully beneficial electrification program' as one containing four specific elements: incentives or financing for cost-effective conversion, a central goal of reducing net carbon emissions, a verification process for replacements, and energy audits to calculate savings. The research found that no Midwest co-op currently offers a program meeting all these criteria.
• Approximately 88% of Midwest rural electric cooperatives provide some form of energy upgrade or loan program for members, though these are often simple rebate programs that may disproportionately benefit middle and upper-income members.
• Newer electric heating and water technologies are significantly more efficient than propane alternatives; electric heat pumps can be two to three times more efficient, and cold climate air-source heat pumps (ccHP) can operate efficiently as temperatures approach 0 F.
• Beneficial electrification provides utilities with grid management advantages, such as load shifting and load shedding, which flatten the load curve and reduce demand charges.
• Inclusive on-bill financing is identified as a key tool for equity, as it can eliminate upfront costs, remove credit score requirements, and attach the loan to the electric meter rather than the individual, making it accessible to renters and low-income households.
• Propane is the primary heating fuel for rural Midwest homes due to the high cost of natural gas infrastructure; approximately 1.5 million rural homes in the region use propane as their main source of space heating.
• The Rural Energy Savings Program (RESP), administered by the USDA, provides zero-interest loans to rural electric cooperatives to fund beneficial electrification and energy efficiency programs, with $100 million available through September 2019.
• The report identified 19 programs in the Midwest that are 'near-full' beneficial electrification programs: 16 for water heater conversion and three for air-source heat pump conversion, though they lack carbon goals and verification processes.

APA

Environmental and Energy Study Institute (n.d.). Equitable Beneficial Electrification (EBE) for Rural Electric Cooperatives. https://www.eesi.org/files/REPORT-Equitable-Beneficial-Electrification-for-Rural-Electric-Cooperatives.pdf

Chicago

Environmental and Energy Study Institute. Equitable Beneficial Electrification (EBE) for Rural Electric Cooperatives. n.d. https://www.eesi.org/files/REPORT-Equitable-Beneficial-Electrification-for-Rural-Electric-Cooperatives.pdf.

Wikipedia

{{cite report |author=Environmental and Energy Study Institute |title=Equitable Beneficial Electrification (EBE) for Rural Electric Cooperatives |url=https://www.eesi.org/files/REPORT-Equitable-Beneficial-Electrification-for-Rural-Electric-Cooperatives.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{environmentalandenergystudyinstitutendequitable, author = {{Environmental and Energy Study Institute}}, title = {{Equitable Beneficial Electrification (EBE) for Rural Electric Cooperatives}}, institution = {Environmental and Energy Study Institute}, url = {https://www.eesi.org/files/REPORT-Equitable-Beneficial-Electrification-for-Rural-Electric-Cooperatives.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }