Phoenix, AZ
Electrification ROI based on APS rates and local rebates
Population: 1,608,000•Climate: hot•Electric: $0.135/kWh•Gas: $1.28/therm
Best Upgrade
Solar Panels
12.2 years • 55% ROI
Annual Savings
$2,573/year
Full electrification
Total Incentives
$11,375
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
APS rebate:-$400
Net cost:$9,600 - $15,600
Savings & ROI
Annual savings:$210/year
Simple payback:Not Recommended
15-year ROI:-78%
CO₂ reduction:0.3 tons/year
15-year net savings:$-11,844
Solar Panels (6kW System)
Generate your own electricity from the sun
☀️
Costs
Upfront cost:$15,000 - $21,000
Federal tax credit (30%):-$5,400
Net cost:$9,600 - $15,600
Savings & ROI
Annual savings:$1,064/year
Simple payback:12.2 years
25-year ROI:55%
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:-$900
City/state incentives:-$75
Net cost:$18,925 - $33,625
Savings & ROI
Annual savings:$2,573/year
Simple payback:10.6 years
15-year ROI:9%
Total CO₂ reduction:10.1 tons/year
15-year net savings:$941
Phoenix Energy Context
Climate & Usage
Climate zone:hot
Heating degree days:1,400
Cooling degree days:3,500
Avg home size:2,100 sq ft
Energy Costs
Utility provider:APS
Electricity rate:$0.135/kWh
Natural gas rate:$1.28/therm
Avg monthly bills:$162 elec + $48 gas
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