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America's most efficient cities are mostly in cold climates. That is a policy story, not a weather story.

By Sasha Updated 9 min read

The 2024 ACEEE City Clean Energy Scorecard ranks Boston, NYC, Seattle, San Francisco and Minneapolis at the top, with Sunbelt cities (Houston, Phoenix, Atlanta, Miami) clustered at the bottom. The non-obvious truth: cold-climate cities dominate not because they use less, but because they required building envelope upgrades in their codes 10+ years ago AND are converting heating to heat pumps that deliver 2 to 4 units of heat per unit of electricity. Sunbelt per-capita kWh stays high because A/C dominates and there is no fuel-switching lever available. US average residential rate March 2026: 18.83 cents/kWh (EIA).

5
Top ACEEE cities
$268
NYC LL97 penalty per tCO2
$3.2k
IRS EEHIC max per year
18.83¢
US avg ¢/kWh, Mar 2026

19 years of US city energy policy

Pick a year. See the ordinance, the federal credit or the Scorecard milestone that defines the ranking.

Timeline /

Sources: ACEEE City Clean Energy Scorecard 2024; NYC LL97 ordinance; Boston BERDO 2.0; Seattle 2030 District; Minneapolis Climate Equity Plan; IRS EEHIC + RCEC; EIA Electric Power Monthly + RECS. Verified May 2026.

Common misconception

"Top efficient cities are efficient because they use less." Not quite.

The intuitive read of any city efficiency ranking is that the top cities use the least energy per person and the bottom cities use the most. The 2024 ACEEE Scorecard does not actually say that. Per-capita kWh in Boston, NYC and Minneapolis is in the middle of the US distribution, not the low end. Per-capita kWh in some Sunbelt cities ranked near the bottom (Phoenix, Houston) is high, but per-capita kWh in Atlanta or Miami is closer to the national average than the ranking would suggest.

What the Scorecard actually measures is policy: building energy benchmarking ordinances, mandatory disclosure, carbon caps on large buildings, utility energy-efficiency programs, community choice aggregation, transit investment, municipal fleet electrification, transparent code adoption. Cities that have layered these policies for 10+ years score high. Cities that have not score low, even if their absolute energy use is comparable.

This matters for two reasons. First, the ranking is a leading indicator: cities that adopt the policies in 2025 will show in the rankings by 2028 to 2030, and bills follow with a lag. Second, the levers are transferable. A Sunbelt city that adopts building energy disclosure + carbon caps + heat-pump-friendly code + utility EE program ramp-up can move materially in 5 years. The current ranking reflects 15 years of accumulated policy choices, not climate destiny.

Read the rest of this page for what each top city actually did, what the Sunbelt cities are missing, and how a household can use the same federal incentives regardless of city ranking.

The scoring

What the ACEEE City Scorecard actually measures.

Three policy categories drive most of the variation between top and bottom cities. The Scorecard scores each category 0 to 30 or 0 to 35 points; cities above 70 are top tier, below 30 bottom tier.

1

Building policies

Energy code adoption + amendments (IECC + state and local stretch codes), mandatory benchmarking and disclosure ordinances, carbon caps on large buildings (NYC LL97, Boston BERDO 2.0, Seattle), zero-net-energy targets. The category that most separates top from bottom cities. Source: NYC LL97, Boston BERDO.

2

Utility programs

Per-capita utility energy-efficiency spending and savings (kWh saved per year), low-income program reach, demand-response participation, electrification incentives. Strongest in MA (Mass Save), CA (CPUC-mandated), NY (Empire Building Challenge), IL (Future Energy Jobs Act). Weakest in vertically-integrated SE.

3

Community + transit

Community choice aggregation (CCA) reach, municipal renewable procurement, transit mode share, EV infrastructure, walkability and density. Cold-climate cities with legacy transit (NYC, Boston, SF, Chicago) score structurally higher than postwar Sunbelt sprawl.

The detail that surprises most readers. The ACEEE Scorecard does not penalise cities for absolute energy use. A Sunbelt city with high A/C-driven consumption can score well IF it has strong building codes, an active utility EE program and a CCA. Conversely, a cold-climate city with moderate consumption can score badly if it has weak codes and no benchmarking ordinance. The ranking is about policy infrastructure, not raw kWh.

City comparison

Top 5 cold-climate cities vs bottom 5 Sunbelt cities.

For each: ACEEE 2024 rank tier, the dominant policy lever (or its absence), and the 5-year trend direction.

ACEEE City Energy Efficiency Scorecard 2024 top vs bottom comparison
City ACEEE 2024 tier Dominant policy lever 5-year trend
Boston, MA Top 5 BERDO 2.0 building emissions standard + Mass Save Improving (heat-pump conversions accelerating)
New York, NY Top 5 Local Law 97 + CCA + ConEd EE programs Improving (LL97 enforcement live since 2024)
Seattle, WA Top 5 Building tune-ups + 2030 District + SCL hydro Improving (building emissions performance standard 2023)
San Francisco, CA Top 5 CleanPowerSF CCA + PG&E EE + transit mode share Improving (electrification ordinance)
Minneapolis, MN Top 5 Climate Equity Plan + Xcel rebates + transit Improving (Energy Disclosure Ordinance 2020)
Houston, TX Bottom 10 No mandatory building disclosure; weak utility EE Flat (ERCOT scarcity prompts grid focus, not EE)
Phoenix, AZ Bottom 15 APS rooftop solar headwinds; A/C dominates Flat (no new building policy since 2019)
Atlanta, GA Bottom 15 Vertically-integrated GA Power; weak EE mandate Slightly improving (Vogtle 3+4 carbon impact)
Miami, FL Bottom 10 FPL EE programs limited; no carbon caps Flat (storm hardening prioritised over efficiency)
Memphis, TN Bottom 5 TVA self-supply; municipal utility limited mandate Flat

! Rankings are policy snapshots, not destiny

Tier placement reflects the 2024 ACEEE Scorecard methodology. Cities that adopt new building energy disclosure ordinances, carbon caps or aggregation programs in 2025 to 2026 will move up in subsequent editions; the lag from policy adoption to ACEEE rank rise is typically 2 to 4 years. Verify current rank at ACEEE.org.

The mechanics

Why cold-climate cities dominate the rankings.

Four structural reasons, none of them are weather. All of them are policy choices that compounded over 10 to 20 years.

A Building codes required envelope upgrades early

Massachusetts, NY, WA, MN and CA adopted strong building energy codes (high-performance windows, R-30+ insulation, mandatory air-sealing tests) starting in the late 2000s. The building stock that exists in 2026 reflects those decisions. Sunbelt states (TX, AZ, GA, FL, TN) adopted weaker IECC versions later or amended them out; the building stock reflects that too.

B Heat-pump conversion delivers 2 to 4x efficiency

A heat pump moves 2 to 4 units of heat per unit of electricity (COP of 2 to 4). Cold-climate cities are converting from gas/oil furnaces to heat pumps at scale, which cuts total energy use even as it switches the bill from gas to electric. Sunbelt cities have no equivalent lever: their heating load is small and their cooling already uses heat pumps in reverse, so there is no fuel-switching gain available.

C Utility EE programs are bigger and older

MA Mass Save, NY ConEd + NYSEG EE, CA CPUC-mandated programs and IL Future Energy Jobs Act spend 0.5 to 1.5% of utility revenue on energy efficiency every year. The Sunbelt average is closer to 0.1 to 0.3%. Compound the difference over 10 years and the kWh-saved gap is enormous.

D Building disclosure exposes the worst performers

NYC GGBP (2009), Boston BERDO (2013), Seattle (2010), Minneapolis (2020) and SF Existing Building Ordinance (2011) require commercial and large residential buildings to report annual energy use. The transparency creates pressure on the worst performers, who are forced to retrofit or face market discount. Sunbelt cities mostly lack this transparency, so the worst buildings stay invisible.

The takeaway: the efficiency ranking is a policy-vintage ranking. Cities that started layering ordinances 15 to 20 years ago now have the building stock and utility programs to score high. The implication for Sunbelt mayors is hopeful: the levers exist, and adopting them in 2025 to 2026 will show in 2030 ACEEE rankings.

2024 to 2026 inflection

The four 2024 to 2026 numbers that matter most.

Recent policy enforcement and federal incentive ramps shape how the next ranking will look.

$268

NYC LL97 penalty per tCO2

Per-square-foot CO2 caps for buildings > 25,000 sqft, enforcement live since 2024. Hundreds of millions in retrofit work mobilised.

$3,200

IRS EEHIC max per year

$1,200 base + $2,000 for heat pump per year through 2032. Pair with state and utility rebates.

30%

IRS RCEC for solar + battery

Residential Clean Energy Credit covers 30% of solar, battery, geothermal heat pump cost through 2032.

2024

ACEEE biennial Scorecard

Latest edition. Next publication expected 2026. Methodology rewards policy adoption with 2-4 year lag to enacted-savings.

Three reads on what matters now

  • A The federal stack lands where the policy stack already exists. Cities with strong building codes and active utility EE programs capture more IRA money per capita because the install pipeline is already there. Boston, NYC and SF see IRA retrofits stacked on top of state programs and CCA premiums; Sunbelt cities capture less.
  • B LL97 is the policy experiment to watch. If NYC large-building owners absorb the 2024 to 2030 carbon caps through retrofit rather than penalty, it becomes the template other cities adopt. If penalty exceedance becomes routine, the model is weaker than advertised.
  • C Heat-pump conversion is the visible household win. The IRA $2,000 heat-pump credit + state and utility rebates can cover 50 to 80% of installed cost in the strongest programs. Even Sunbelt households (where the heating savings are small) benefit if they install a cold-climate heat pump for cooling efficiency.
Insider view

Four reasons the Sunbelt cannot copy NYC overnight.

The cold-climate playbook works because the underlying conditions support it. Translating that to Houston or Phoenix takes more than copying ordinances.

01

Most Sunbelt utilities are vertically integrated

In NYC and Boston the utility (ConEd, National Grid) is required by the state PUC to spend a fixed share of revenue on energy efficiency, year after year. In Houston the local utility is regulated under ERCOT and TX PUC rules that do not impose comparable EE mandates; in Atlanta Georgia Power is vertically integrated with weaker EE accountability. The lever a mayor can pull is much narrower.

02

State preemption blocks city ordinances

Texas, Arizona and Florida have state laws preempting municipal authority over building codes, natural gas bans and energy disclosure mandates. Houston cannot adopt LL97 even if it wanted to. NYC, Boston, SF and Seattle operate under home-rule states that allow it.

03

Building stock vintage matters

NYC and Boston have large pre-1970 building stocks that are bad performers but addressable through retrofit. Sunbelt cities grew postwar with sprawling single-family detached stock; retrofit cost-per-home is higher and aggregation harder. The dollar-per-MWh-saved curve is structurally less attractive.

04

Climate-driven cooling load is the hard problem

A Phoenix or Houston home runs A/C 6 to 8 months of the year. Cooling load is climate-driven and difficult to reduce without making the building uninhabitable. Heat-pump-for-heating savings in cold climates can be 30 to 50% on the heating bill; equivalent savings on cooling in the Sunbelt are 5 to 15%, even with best-in-class equipment. The energy-savings ceiling is lower.

The fair read: the cold-climate top of the ranking is the product of policy infrastructure and addressable building stock; replicating the top in Sunbelt cities requires state-level reform first, then municipal ordinances, then retrofit aggregation, then IRA stacking. The 2030s ACEEE Scorecards will show whether that sequence is happening anywhere in TX, AZ, GA or FL.

Your move

Six things you can actually do regardless of your city ranking.

1

Stack the IRS EEHIC + RCEC

Up to $3,200/year retrofit credit + 30% solar/battery/geothermal credit. Available in every state through 2032. IRS EEHIC, RCEC.

2

Install a cold-climate heat pump

Mitsubishi Hyper Heat, Fujitsu, Carrier Infinity 24 SEER+, Daikin Aurora units now work down to -15F. The $2,000 IRS credit + state and utility rebates can cover 50 to 80% of installed cost in MA, NY, CA, ME, VT, MN.

3

Enrol in community choice aggregation

If you live in IL, OH, MA, NJ, CA, NY (downstate), check whether your municipality has a CCA program. Typical savings: $50 to $150/year with higher renewable content. Plug In Illinois for IL.

4

Get an energy audit

$150 EEHIC credit for a professional energy audit. Output identifies the highest-savings retrofits to prioritise (insulation, air sealing, equipment). Most utility EE programs in top-tier states subsidise the audit further or offer it free.

5

Enrol in utility demand-response

Most US utilities now run residential DR programs (A/C cycling, thermostat control, battery dispatch). Earnings: $25 to $1,000+/year depending on equipment. See the Earth Hour vs DR comparison for the city table.

6

Engage your city council if you are in a low-ranked city

Building energy disclosure ordinances cost the city almost nothing to adopt and start the policy clock toward higher ACEEE rankings. CCA, electrification permits, building tune-up programs are similar low-cost levers. Your city council, mayor and PUC consumer advocate are the lever.

FAQ

Common questions about US city energy efficiency.

The 2024 ACEEE City Energy Efficiency Scorecard (the most recent biennial edition as of May 2026) ranks Boston, New York City, Seattle, San Francisco and Minneapolis at the top. The scoring spans local government operations, community-wide initiatives, building policies, energy and water utilities, and transportation. Source: ACEEE City Clean Energy Scorecard.

Two structural reasons, not just one. First: cold-climate cities required envelope upgrades and high-performance windows in building codes 10 to 20 years ago, so the building stock is already efficient. Second: cold-climate cities are converting heating from gas/oil to heat pumps, which deliver 2 to 4 units of heat per unit of electricity. The combination cuts per-capita kWh fast. Sunbelt cities have neither lever: building codes are looser, and A/C is already electric so there is no fuel-switching gain available.

The American Council for an Energy-Efficient Economy (ACEEE) publishes a biennial scoring of major US cities across 5 policy categories: local government operations, community-wide initiatives, building policies, energy and water utilities, and transportation. Each city receives a score out of 100. The Scorecard launched in 2013 and is the standard benchmark for US municipal energy policy. Source: ACEEE.

Local Law 97 (2019) sets per-square-foot CO2 caps for NYC buildings > 25,000 sqft, starting in 2024 and tightening in 2030. Non-compliance penalty is up to $268/tCO2. It is the first US policy with real enforcement teeth on building emissions. Boston BERDO 2.0 (2021), Seattle (2023) and Denver (2022) have similar structures. Source: NYC LL97 page.

Three reasons. One: A/C dominates residential energy use and there is no easy substitution (heat pumps are already standard for cooling). Two: utility energy-efficiency programs are smaller because most southern utilities are vertically integrated, less exposed to wholesale price signals, and less obligated by state PUCs to deliver kWh savings. Three: building energy codes (IECC adoption + amendments) are weaker than in the Northeast or West Coast. The combination keeps per-capita kWh high without an obvious policy lever.

A municipal program where the city aggregates residential and small-business electricity demand and procures supply collectively, often pursuing higher renewable content or lower cost than the default utility. Strong programs exist in IL (the strongest aggregation track in the US, via Plug In Illinois), OH, MA, NJ and CA (CCAs). Aggregation typically saves households $50 to $150/year while increasing the renewable share of supply. The ACEEE Scorecard rewards cities that operate strong aggregation programs.

The IRS Energy Efficient Home Improvement Credit (IRS EEHIC) covers $1,200 to $3,200/year in retrofits: heat pumps ($2,000 cap), insulation ($1,200), windows ($600), audit ($150). The Residential Clean Energy Credit (IRS RCEC) covers 30% of solar, battery and geothermal heat-pump cost. Both run through 2032. Pair with state and utility rebates for maximum stack.

Yes. The US average residential rate was 18.83 cents/kWh in March 2026 (EIA) but the range is wide: Hawaii ~41 cents, North Dakota ~11 cents. Per-household monthly bill depends as much on consumption (driven by climate, building stock, equipment) as on price. The cities at the top of the ACEEE Scorecard tend to have moderate rates and aggressively lower consumption; some Sunbelt cities have low rates but very high consumption, so total bills are similar.

Article reviewed by Cornelia Zavoianu, Selectra energy expert

Written by

Sasha