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 December 2024Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,207
Full electrification
Available Incentives
$10,900
Federal + state + utility
CO₂ Reduction
14.3 tons
Per year

Idaho Energy Costs

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

Return on Investment by Upgrade

🌡️

Heat Pump HVAC

Upfront Cost$12,000 - $22,000
Total Incentives-$2,700
Net Cost$9,300 - $19,300
Annual Savings$76/yr
Payback PeriodNot Recommended
Lifetime ROI13%
CO₂ Reduction4.7 tons/yr
☀️

Solar Panels

Upfront Cost$15,000 - $30,000
Total Incentives-$4,500
Net Cost$10,500 - $21,000
Annual Savings$700/yr
Payback Period23.6 years
Lifetime ROI91%
CO₂ Reduction3.1 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$2,500
Net Cost$0 - $2,000
Annual Savings$183/yr
Payback Period7.5 years
Lifetime ROI61%
CO₂ Reduction1.8 tons/yr

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$1,200
Net Cost$-400 - $1,300
Annual Savings$1,248/yr
Payback Period0.4 years
Lifetime ROI1608%
CO₂ Reduction4.8 tons/yr

Full Electrification Package

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$10,900
Net Cost After Incentives
$19,400 - $48,100
Annual Energy Savings
$2,207/year
Lifetime Savings (18 years)
$39,726
Simple Payback
17.2 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 0.4 years and an ROI of 1608%.

0.0 years slower than average compared to the national average.

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