Optimizing grid coordination and affordability in electrified multifamily buildings via real-time pricing

As cities pursue building electrification to reduce emissions and support sustainability, questions remain about how to align these efforts with housing affordability. This study evaluates dynamic electricity pricing and distributed energy resource (DER) integration — specifically rooftop solar, battery storage, and net metering — in an electrified multifamily housing model. Using a calibrated energy model and hourly price signals in a simulated electricity market, we compare six scenarios involving traditional and electrified buildings under different pricing and DER conditions. Results show that electrified buildings without DERs increased annual community electricity costs to $177,958 compared to $163,070 in a traditional baseline. However, with DER participation, electrified buildings reduced annual costs to $116,800 under detailed marginal pricing and as low as $98,179 under simplified marginal pricing. These represent up to 45% savings relative to the regulated traditional baseline. Emissions impacts were similarly improved, with DER-enabled scenarios narrowing the carbon gap by up to 79% and reducing annual emissions by as much as 18%, depending on the generation mix. These findings demonstrate that with responsive pricing structures and DER deployment, electrified housing can achieve both affordability and sustainability goals. • A Stackelberg game model is used to evaluate real-time pricing in electrified multifamily housing. • The model coordinates building-side DERs with grid-side dispatch to improve system outcomes. • Results show reduced tenant utility costs relative to regulated fixed-rate baselines, alongside lower emissions and improved grid performance. • Pricing structures are evaluated against fixed-rate benchmarks and traditional mixed-fuel buildings. • Findings support real-time pricing and DER coordination as strategies for affordable decarbonization.