Energy policy experts and state officials indicate that New York is set to mandate developers use electricity for most new buildings. Starting January 2026, the “All Electric Construction Law” will require many new structures to primarily operate on electricity and will prohibit gas appliances, with certain exceptions.

Some energy experts warn that fully implementing this electrification mandate might worsen existing electricity shortages. They’ve pointed out that New York’s push toward restricting reliable power sources could cause significant capacity issues, delaying or halting housing developments. It’s not just a funding problem; it’s about the actual electrical capacity needed to support these projects.

Helming has noted that the strict electricity requirements are stressing utility companies and are complicated by some weaknesses in New York’s power grid. Once operational, experts say the state has some of the highest utility bills in the country, which is a concern for residents.

Representatives from NYSEG and RG&E mentioned unexpected demand is complicating their operations. For instance, a local town official shared that developers are finding themselves unable to electrify due to insufficient power supply, and solutions have unfortunately included reverting back to gas appliances.

As New York struggles to phase out older power plants and aging infrastructure, some fear that these policies are steering the state toward more severe electricity issues. This is likely to impact not only housing but also local school districts, leading to increased project costs and potentially making housing less attractive for developers.

The law was signed in 2023 and targets new seven-story buildings, leaving exemptions for essential facilities like hospitals and fire stations. Existing homes using gas will not be immediately affected, though the aim is for a comprehensive electric transition in the long run.

While some officials see the law as an important step for environmental goals, concerns linger about how the new codes will affect construction costs. One builder noted that this could lead to an increase of around $20,000 per home.

Responses from key state officials regarding these concerns have been sparse, highlighting the ongoing debates around balancing sustainability with practical readiness for the infrastructure changes required.