The federal energy tax credits have expired

Costs and payback figures on this page may still assume a federal credit that no longer exists. The 30% Residential Clean Energy Credit (25D) and the Energy Efficient Home Improvement Credit (25C) both ended for property placed in service after 31 December 2025, and the home EV charger credit (30C) ended after 30 June 2026. Assume no federal credit on work done today.

What expired, and what still exists →

Is Electrification Worth It in Idaho?

Idaho has the second-cheapest electricity in America. $0.10/kWh from all that hydro.

Boise gets 5,800 heating degree days. Natural gas costs $1.10/therm from Intermountain Gas. You need moderate-to-serious heating depending on where you are (Coeur d'Alene is colder, Pocatello even more so). Idaho Power offers heat pump rebates up to $1,200.

This is one of the best states for heat pumps. Cheap electricity + decent heating loads + good rebates = 5-8 year payback. Even if you have natural gas, the economics work. And your electricity is mostly carbon-free hydro, so you're making a real environmental impact too. If you're on propane, this is a slam dunk.

Updated 31 July 2026Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,207
Full electrification
Available Incentives
$1,400
State + utility (federal credits expired)
CO₂ Reduction
14.3 tons
Per year

What Do Energy Costs Look Like in Idaho?

Here's the real data from EIA (Energy Information Administration). These are the rates that determine whether electrification makes financial sense.

Electricity Rate
$0.108/kWh
Natural Gas Rate
$1.15/therm
Average Electric Bill
$102/month
Average Gas Bill
$58/month
Climate Zone
cold
Heating Degree Days
5,900
Cooling Degree Days
850

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

Which Upgrades Pay Off the Fastest?

The economics are broken down for each major upgrade. Pay attention to the payback period—that's how long until savings equal your net cost.

🌡️

Heat Pump HVAC

Upfront Cost$12,000 - $22,000
Total Incentives-$700
Net Cost$11,300 - $21,300
Annual Savings$76/yr
Payback PeriodNot Recommended
Lifetime ROI13%
CO₂ Reduction4.7 tons/yr
☀️

Solar Panels

Upfront Cost$15,000 - $30,000
Total Incentives-$0
Net Cost$15,000 - $30,000
Annual Savings$700/yr
Payback Period33.8 years
Lifetime ROI91%
CO₂ Reduction3.1 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$500
Net Cost$2,000 - $4,000
Annual Savings$183/yr
Payback Period19.3 years
Lifetime ROI61%
CO₂ Reduction1.8 tons/yr

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$200
Net Cost$600 - $2,300
Annual Savings$1,248/yr
Payback Period1.2 years
Lifetime ROI1608%
CO₂ Reduction4.8 tons/yr

Should You Go All-In?

Here's what it costs to electrify everything at once—heat pump HVAC, solar panels, heat pump water heater, and EV charger. The upfront cost is high, but so are the savings.

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$1,400
Net Cost After Incentives
$28,900 - $57,600
Annual Energy Savings
$2,207/year
Lifetime Savings (18 years)
$39,726
Simple Payback
21.7 years
💡

Best ROI for Idaho

Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 1.2 years and an ROI of 1608%.

0.0 years slower than average compared to the national average.

Ready to electrify your Idaho home?

Get free quotes from local contractors who specialize in heat pumps, solar, and electrification.

Get Free Quotes →