Commercial buildings are entering a new phase of energy efficiency defined by a shift toward resilient, scalable solutions. 

Through its work with utilities, manufacturers, and market actors, NEEA is advancing a whole systems approach to natural gas efficiency that prioritizes real-world implementation. The results are twofold: a portfolio of solutions that can be deployed across a diverse and often constrained commercial building stock and a suite of emerging technologies to build on for the future.

 And as demand on the electric grid increases, particularly during peak periods, efficient natural gas technologies can play an important role in supporting reliability, managing costs, and expanding energy choices for building owners.

A Market Defined by Constraints and Opportunity

Natural gas systems continue to serve a significant share of commercial buildings, especially for space and water heating. Much of this equipment exists in smaller and midsize buildings, where system upgrades are often driven by replacement needs rather than long-term planning.

Efficiency improvements must align with real-world priorities. When equipment fails or reaches end of life, building owners and contractors need solutions that can be installed quickly, reliably, and without introducing additional complexity. At the same time, broader energy trends are reshaping the landscape. Increased electrification, rising energy demand, and evolving policy considerations are influencing how manufacturers prioritize product development and how building owners evaluate their options.

In this environment, improving natural gas efficiency is a question of how to deliver meaningful performance gains within the constraints of cost, time, and existing infrastructure.

Rethinking Efficiency Through Rooftop Units

Rooftop units sit at the center of this opportunity. These systems are widely used across commercial buildings and represent a large portion of heating energy use in the region. Historically, efficiency improvements in rooftop units have focused on burner performance. However, as NEEA’s research has shown, this approach captures only part of the picture. According to program insights presented in NEEA’s 2025 Market Progress Evaluation Report on Efficient Rooftop Units, features such as cabinet construction, insulation, and air leakage can significantly impact overall system performance even though they are not reflected in standard efficiency ratings. By taking a more holistic view of the equipment, NEEA and its partners have identified pathways to achieve meaningful gains without fundamentally changing how rooftop units are designed or installed.

Just as important, these enhancements are relatively straightforward to implement. They do not require a complete system redesign or specialized installation practices. This makes them well suited to the replacement market, where speed, cost, and simplicity are critical factors.

Still, challenges remain. Many of these advanced features are currently more common in custom or higher-end equipment, which can limit adoption in cost-sensitive projects. Increasing awareness of the value proposition and expanding availability in lower-cost product lines will be key to scaling these solutions.

Emerging Technologies and the Path Forward

While improvements to existing technologies are driving near-term progress, emerging solutions are expanding what is possible for natural gas efficiency in commercial buildings.

As seen in NEEA’s latest market research on Commercial HVAC systems, gas high-efficiency dedicated outdoor air systems offer a new approach to HVAC design by separating ventilation from heating and cooling functions. This allows each component to operate more efficiently and provides greater control over indoor air quality and system performance. By introducing a high-efficiency gas option within this framework, the technology expands the range of viable solutions available to building designers.

Gas-fired absorption heat pump systems are also showing promise in commercial water heating applications. These systems represent a departure from conventional approaches by combining combustion with heat pump technology to achieve higher levels of efficiency. Early field research has demonstrated significant savings potential, particularly in building types with high and consistent hot water demand such as multifamily housing, lodging, and restaurants. In some cases, systems have achieved more than 50% reductions in natural gas use.

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With the technology still in an early stage, performance can vary, depending on how the overall system is designed and installed. Understanding how different components work together, from storage tanks to system configuration, is critical to achieving expected results.

The future of natural gas efficiency is not tied to any individual technology, but how those technologies are applied within complete systems. Developing repeatable system designs that deliver consistent performance will be essential to building market confidence.

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The Role of Dual-Fuel Strategies

Dual-fuel systems are emerging as an important area of exploration in this evolving energy landscape. These systems combine electric and gas technologies to optimize performance, improve resilience, and reduce overall energy use.

In practice, this might involve pairing a heat pump with a gas water heating system, allowing each technology to operate where it is most effective. This approach can significantly improve overall system efficiency while maintaining flexibility in how energy is used.

Dual-fuel systems also offer practical advantages for existing buildings. In many cases, full electrification may be constrained by electrical capacity or infrastructure limitations. Dual-fuel approaches provide a pathway to improved efficiency without requiring major upgrades.

Looking Ahead: Scaling What Works

Scaling these solutions across the broader market will require continued collaboration across the supply chain. Manufacturers need clear signals and specifications to guide product development. Contractors and designers need tools and training to confidently implement new solutions. Building owners need clear value propositions that balances upfront cost with long-term savings.

NEEA’s role in convening these stakeholders and supporting research, demonstration, and market development remains central to this effort. By aligning technical innovation with market needs, the organization is helping ensure that efficiency gains are not limited to a small subset of projects but are accessible across the full range of commercial buildings.