Is Electrification Worth It in Iowa?

Iowa: 6,500 heating degree days, -15°F winter lows, and corn ethanol politics.

You need serious heating. Natural gas costs $1.10/therm. Electricity runs $0.13/kWh. This is cold-climate heat pump territory—you need a good one or it won't work well. Alliant Energy and MidAmerican offer heat pump rebates, but they're modest ($400-800).

If you're heating with propane (common in rural Iowa), a cold-climate heat pump will save you $1,000+ per year. If you have natural gas, the payback stretches to 10-14 years—still positive but not exciting. The federal $2,000 credit helps. Make sure you get a model rated for -15°F operation—Iowa winters are no joke.

Updated December 2024Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,257
Full electrification
Available Incentives
$10,550
Federal + state + utility
CO₂ Reduction
14.3 tons
Per year

Iowa Energy Costs

Electricity Rate
$0.128/kWh
Natural Gas Rate
$1.32/therm
Average Electric Bill
$125/month
Average Gas Bill
$72/month
Climate Zone
cold
Heating Degree Days
6,500
Cooling Degree Days
900

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-$2,500
Net Cost$9,500 - $19,500
Annual Savings$56/yr
Payback PeriodNot Recommended
Lifetime ROI11%
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$829/yr
Payback Period19.9 years
Lifetime ROI108%
CO₂ Reduction3.1 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$2,350
Net Cost$150 - $2,150
Annual Savings$204/yr
Payback Period7.3 years
Lifetime ROI68%
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$1,168/yr
Payback Period0.5 years
Lifetime ROI1509%
CO₂ Reduction4.8 tons/yr

Full Electrification Package

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$10,550
Net Cost After Incentives
$19,750 - $48,450
Annual Energy Savings
$2,257/year
Lifetime Savings (18 years)
$40,632
Simple Payback
17.0 years
💡

Best ROI for Iowa

Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 0.5 years and an ROI of 1509%.

0.0 years slower than average compared to the national average.

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