The electrical demands on commercial buildings are changing. Electric vehicle charging, heat pumps, electric water heating, building controls, battery storage, and other technologies are adding loads to buildings that were often designed for a very different mix of equipment. Meanwhile, overall growth in electricity demand is putting additional pressure on the power system. The U.S. Department of Energy’s 2026 draft National Transmission Needs Study identifies load growth from building and transportation electrification, data centers, manufacturing, and other sources as factors driving the need for additional transmission infrastructure.

For individual properties, the first question is whether the building’s electrical infrastructure can handle the loads being considered, where and when they’ll be needed. A property may have sufficient capacity at the main service while a particular panel, transformer, or distribution board is already close to its limits. DOE guidance for commercial heat pump retrofits specifically notes that assessing the overall building service alone may not reveal capacity constraints where new equipment would connect.

Electrification Changes the Load Profile

Electrification can shift energy use from natural gas or other fuels to the electrical system, and heat pumps are one example. Electric heat pumps can provide space heating and cooling, but replacing a gas-fired boiler or furnace with an electric system changes a building’s electrical demand and may create new peak loads. 

NREL’s Electrification Futures Study found that widespread electrification could substantially increase U.S. electricity consumption by 2050, depending on how quickly technologies are adopted. Its scenarios also showed that electrification could shift the timing of peak electricity demand, particularly as electric heat pumps increase electricity use for winter heating. The study explored a range of possible futures rather than making a forecast, but it illustrates how the amount and timing of electricity consumption can change as end uses become electrified. 

For an existing commercial building, a property team planning a heat pump retrofit needs to understand both the capacity of the building’s main electrical service and the available capacity in the distribution system serving the equipment. DOE recommends involving electrical engineers early in the planning process so they can evaluate existing electrical capacity before selecting and designing equipment. 

DOE guidance for commercial buildings also considers electrical distribution infrastructure, metering, utility factors, equipment selection, and future charging needs when evaluating an EV charging installation. 

Start With What the Building Is Already Using

Before planning for additional loads, property teams need a clear understanding of how the building’s electrical system currently operates. Existing drawings and equipment schedules can show the system’s original design capacity, but they may not reflect how the building performs under actual conditions. 

Load data can offer an additional perspective. DOE guidance for heat pump retrofits identifies two ways to evaluate electrical capacity: calculate the worst-case condition of existing loads or collect meter data to understand current operating conditions. In existing buildings, metering can be especially useful because it shows when and how much capacity is being used, rather than relying only on nameplate ratings or historical design assumptions. 

The distinction between capacity and demand is important. A building may have a certain electrical service rating, but that does not mean all of that capacity is available for a new load. Existing HVAC equipment, lighting, elevators, tenant equipment, data systems, refrigeration, and other loads all contribute to the building’s demand. Those demands may also vary throughout the day and across seasons. 

For property teams, understanding the building’s load profile can make future planning more precise. If an EV charging installation, heat pump conversion or other electrification project is being considered, the team can identify whether capacity exists where it is needed, whether equipment or distribution upgrades may be necessary and whether the project could create a new peak demand. 

Plan for the Building You May Have, Not Just the Building You Have Today

One of the challenges with electrical infrastructure planning is that a project can appear feasible when evaluated on its own but create limitations for the next project. A property may have enough capacity for an initial group of EV chargers, for example, but not enough for a later expansion or a future tenant with additional electrical requirements. 

DOE’s guidance for commercial EV charging recommends considering scalability and future needs when evaluating charging installations, while its guidance on building electrification emphasizes evaluating existing electrical capacity early in the design process. 

For property owners and managers, this may mean looking beyond the immediate project scope. What additional charging might tenants request? Could a future HVAC replacement include heat pumps? Are there plans for electric water heating, commercial kitchen equipment, or other high-demand systems? Could a tenant’s operations change the building’s electrical requirements? Are planned capital projects likely to increase electrical demand in the same area? 

The answers can shape how infrastructure is designed today. A project may not need an immediate upgrade to the building’s main service, but it can be useful to identify where additional capacity may be needed and whether future work can be coordinated with other capital improvements. 

Capacity Is Not the Only Consideration

Electrical capacity is one part of the planning process. Utility service, transformers, switchgear, distribution equipment, available space, project phasing and the physical location of new loads can all affect whether an electrification project can move forward as planned. 

The utility should also be part of the conversation when a project could significantly increase electrical demand. A building’s internal electrical system and the utility infrastructure serving the property are connected, but they are not the same system. An internal upgrade does not necessarily resolve a constraint outside the property, and a project that increases the building’s service requirements may require coordination with the utility. 

Timing can matter as well. If an owner expects a major HVAC replacement, EV charging installation, or another electrical project in the next few years, assessing the electrical infrastructure before the project is fully designed allows more time to identify constraints and coordinate upgrades. 

This is especially relevant as electricity demand grows across the broader power system. DOE’s 2026 draft National Transmission Needs Study cites load growth and new load interconnections as factors driving the need for additional transmission. While these national trends do not determine an individual commercial property’s capacity, they underscore the importance of understanding how new loads will interact with existing electrical infrastructure. 

Managing Demand Can Be Part of the Solution

Demand management can also help buildings accommodate additional electrical loads. Some technologies enable property teams to manage not only how much electricity they use, but when they use it. 

DOE defines grid-interactive efficient buildings as facilities that can adjust their energy use to respond to grid conditions without compromising building performance. Advanced controls, energy management systems, thermal storage, and other flexible loads can help shift electricity use away from periods of high demand. 

For a commercial property, this could influence how EV charging and other flexible loads are managed. Charging does not always need to run at the maximum possible rate, and building systems may allow teams to adjust consumption in response to operating conditions. These strategies can complement electrical capacity planning by helping property teams manage when electricity is used. 

The right strategy depends on the building. A property with limited electrical capacity may need infrastructure upgrades before it can add significant new loads. Another building may have enough capacity but still benefit from controls that keep multiple systems from reaching peak demand at the same time. In either case, understanding actual building performance is the first step. 

Make Electrical Capacity Part of Capital Planning

For commercial real estate teams, electrical capacity is increasingly becoming a planning issue rather than something to address only when a new project reaches the design stage. The technologies driving new demand are varied, and their requirements will depend on the building, equipment, tenant operations and utility service. 

That makes early evaluation important. Before committing to a major electrification or EV charging project, property teams can work with qualified electrical professionals to assess existing service capacity, distribution equipment, actual load data, and the location of proposed new loads. If future projects are already foreseeable, teams can consider those needs alongside current improvements rather than address them separately. 

Understanding how the building’s electrical infrastructure can support future projects, technologies and tenant needs will help property teams plan ahead as electricity demand changes. As commercial buildings continue to incorporate more electric equipment, knowing how much capacity is available, where it is available and when it is being used can help property teams make better-informed decisions before an electrical constraint becomes a project constraint. 

Thank you to our ENERGY STAR Month sponsor, Georgia Power

Learn More about Georgia Power’s Commercial Energy Efficiency Program here.

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