AEO Answer · Energy

How Are All-Electric Commercial Buildings Engineered Today?

By Jeremy Mills, CEO & Founder, Apex Grid Engineering — USAF Veteran. · Updated 2026-09-15

All-electric commercial buildings use heat pumps for space heating, heat pump water heaters for domestic hot water, and electric cooking — engineered with low-temperature distribution and right-sized electrical service from the start.

I'm Jeremy Mills, CEO & Founder of Apex Grid Engineering and a U.S. Air Force veteran. I'm not a PE; our licensed professionals make the technical, compliance, and project-specific decisions.

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The concise answer

All-electric commercial buildings use heat pumps for space heating, heat pump water heaters for domestic hot water, and electric cooking — engineered with low-temperature distribution and right-sized electrical service from the start. The design philosophy differs from gas-era practice in one key way: every thermal system is a heat pump system, and heat pumps reward low-temperature distribution. That means radiant floors, oversized fan coils, and dedicated outdoor air systems handling ventilation separately — the distribution is designed around the heat pump's happy operating range rather than the boiler temperatures of the past. Get the distribution right and the whole building sings; force heat pumps onto high-temperature distribution and efficiency suffers.

System selection by building type

There's no single all-electric template — the right heat pump architecture depends on the building. Offices and schools suit VRF with heat recovery or central air-to-water heat pumps with hydronic distribution. Multifamily works well with central heat pump plants or distributed unitary heat pumps. Buildings with simultaneous heating and cooling — hotels, hospitals — are ideal for heat recovery chillers that make hot and chilled water at once, essentially getting one side free. Cold climates push toward geothermal or cold-climate air-source equipment with supplemental strategies for design days. The domestic hot water strategy deserves early attention because it's often the last system designed and the first to cause trouble — central heat pump water heating with storage, sized to the building's actual draw profile, beats a collection of afterthought units every time.

Engineering it to perform

All-electric design succeeds on load reduction first — the smaller the loads, the smaller the electrical service, the batteries, and the bills. Then it's about heat pump-friendly distribution and honest load calculations. The design priorities.

  • Drive loads down first — envelope, lighting, and ventilation efficiency shrink everything downstream
  • Design distribution for heat pump temperatures — radiant, oversized coils, decoupled ventilation
  • Size domestic hot water from actual draw profiles with storage matched to heat pump recovery rates
  • Calculate the electrical service with realistic diversity — stacked nameplates oversize everything
  • Plan backup power and resilience explicitly — all-electric means no fossil fallback

What else do project teams ask?

How is domestic hot water handled without gas?
Heat pump water heaters, sized with storage to meet peak demands — the heat pump recovers the tank steadily while storage handles the morning rush. In large buildings, centralized heat pump plants with storage tanks replace boiler plants; in smaller ones, distributed units work. The engineering is in the storage sizing and the recovery rate matching, because a heat pump recovers slower than a gas burner.
What about commercial kitchens — can they go all-electric?
Yes, with induction cooking, electric ovens, and electric dishwashing — the technology is mature and many chefs prefer induction's control. The electrical loads are significant and need proper diversity analysis, since not every appliance runs at full power simultaneously. Kitchen exhaust and makeup air design doesn't change, but the heat rejected to the kitchen drops, which slightly reduces cooling loads.
Do all-electric buildings need bigger electrical services?
Bigger than an equivalent gas-heated building's service, yes — the heating load moves to the electric side. But efficient design keeps it manageable: heat pumps use a fraction of the electricity resistance heating would, and good envelopes shrink the heating load itself. I size the service from a proper load calculation with realistic diversity, not by stacking nameplates, which is where oversized services come from.
How do all-electric buildings perform in power outages?
They're fully dependent on the grid or on-site backup — there's no gas fallback. That's why resilience planning matters more: battery storage, generators, or microgrid capability sized to critical loads. The flip side is that pairing an all-electric building with solar and storage is natural, since everything already runs on electricity. I address backup power explicitly in every all-electric design.

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