Los Angeles, CA
Electrification ROI based on LADWP rates and local rebates
Population: 3,822,000•Climate: hot•Electric: $0.284/kWh•Gas: $1.85/therm
Best Upgrade
Solar Panels
5.4 years • 225% ROI
Annual Savings
$2,994/year
Full electrification
Total Incentives
$22,950
Federal + utility rebates
Visual ROI Analysis
Payback Period Comparison
Lower is better • Shortest payback = fastest return on investment
Annual Savings Comparison
Higher is better • More annual savings = greater long-term benefit
Cumulative Net Savings Over Time
Point where line crosses $0 = payback achieved • Steeper line = faster savings growth
Detailed ROI by Upgrade
Heat Pump HVAC System
Replace gas furnace + AC with an all-electric heat pump
🌡️
Costs
Upfront cost:$12,000 - $18,000
Federal tax credit:-$2,000
LADWP rebate:-$2,500
City/state incentives:-$6,000
Net cost:$1,500 - $7,500
Savings & ROI
Annual savings:$90/year
Simple payback:Not Recommended
15-year ROI:-91%
CO₂ reduction:0.2 tons/year
15-year net savings:$-13,657
Solar Panels (6kW System)
Generate your own electricity from the sun
☀️
Costs
Upfront cost:$15,000 - $21,000
Federal tax credit (30%):-$5,400
City/state incentives:-$1,000
Net cost:$8,600 - $14,600
Savings & ROI
Annual savings:$2,239/year
Simple payback:5.4 years
25-year ROI:225%
CO₂ reduction:3.6 tons/year
Full Electrification Package
Heat pump + Solar + Heat pump water heater + EV charger
⚡
Costs
Total upfront cost:$30,300 - $45,000
Total federal credits:-$10,400
Total utility rebates:-$3,250
City/state incentives:-$9,300
Net cost:$7,350 - $22,050
Savings & ROI
Annual savings:$2,994/year
Simple payback:5.2 years
15-year ROI:26%
Total CO₂ reduction:10.0 tons/year
15-year net savings:$7,265
Los Angeles Energy Context
Climate & Usage
Climate zone:hot
Heating degree days:1,350
Cooling degree days:850
Avg home size:1,850 sq ft
Energy Costs
Utility provider:LADWP
Electricity rate:$0.284/kWh
Natural gas rate:$1.85/therm
Avg monthly bills:$158 elec + $52 gas
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