Co-ops and Condos Face the Toughest Math in Building Electrification

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Co-op and condominium buildings face unique challenges when pursuing electrification. Unlike single-owner properties, these communities must secure board approval, build resident support, and determine how to fund costly upgrades through assessments or increased fees. Matt Cebula, Vice President of Energy Services at AKAM, recommends beginning with manageable improvements that demonstrate measurable savings and build trust.

“We look for things that cost tens of thousands of dollars,” he explains. “Things like new lighting and building systems. Once we get through those, we start to look at larger line items and that often means starting electrification projects.”

Before proceeding, buildings must determine whether their electrical systems — and the local utility infrastructure — can support the increased demand. Full electrification can require extensive engineering, specialized labor, major renovations, and multimillion-dollar investments. Even with funding and approvals secured, limited capacity in the local electrical grid may delay a project for years.

We have had one building spend $8 million to fully electrify. It is a major undertaking,” Cebula said.”

With New York City’s Local Law 97 imposing emissions limits and potential penalties, boards must carefully compare compliance costs with the expense of upgrading as well.

Cebula notes, “Sometimes the economics of paying the fines outweigh the expense of electrification.”

He also emphasizes developing a detailed plan before pursuing financing and educating residents about how individual energy use, particularly during peak-demand periods, affects building costs and emissions. Ultimately, successful electrification requires co-ops and condos to plan early, build resident support through smaller projects, understand their infrastructure limitations, and prioritize education.