Is Electrification Worth It in Illinois?

Chicago winters are cold. But they're not "heat pumps don't work" cold.

You'll see -10°F a few times each winter. That's exactly the temperature where older heat pumps started struggling and needed backup heat. But modern cold-climate units? They're fine. The bigger issue is Illinois electricity costs ($0.13/kWh ComEd, $0.11/kWh downstate) vs. natural gas ($1.05/therm). Gas is cheap here.

If you're in Chicago proper and heating with an old furnace, I'd probably stick with high-efficiency gas—unless you care a lot about emissions or indoor air quality. But if you're replacing both furnace AND AC, get a heat pump. The cooling efficiency gains pay for a chunk of it, and you get heating as a bonus. Downstate and collar counties have better economics.

Updated December 2024•Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,011
Full electrification
Available Incentives
$11,200
Federal + state + utility
CO₂ Reduction
14.3 tons
Per year

Illinois Energy Costs

Electricity Rate
$0.148/kWh
Natural Gas Rate
$1.22/therm
Average Electric Bill
$132/month
Average Gas Bill
$82/month
Climate Zone
cold
Heating Degree Days
6,200
Cooling Degree Days
850
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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-$2,800
Net Cost$9,200 - $19,200
Annual Savings$-180/yr
Payback PeriodNot Recommended
Lifetime ROI-12%
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$959/yr
Payback Period17.2 years
Lifetime ROI124%
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$144/yr
Payback Period10.6 years
Lifetime ROI49%
CO₂ Reduction1.8 tons/yr
⚡

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$1,400
Net Cost$-600 - $1,100
Annual Savings$1,088/yr
Payback Period0.3 years
Lifetime ROI1410%
CO₂ Reduction4.8 tons/yr

Full Electrification Package

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$11,200
Net Cost After Incentives
$19,100 - $47,800
Annual Energy Savings
$2,011/year
Lifetime Savings (18 years)
$36,192
Simple Payback
19.2 years
💡

Best ROI for Illinois

Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 0.3 years and an ROI of 1410%.

0.0 years slower than average compared to the national average.

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