Is Electrification Worth It in Louisiana?

Louisiana electricity costs $0.09/kWh. Cheapest in the nation.

You run AC 8+ months a year. Heating is minimal—maybe 1,500 heating degree days in New Orleans, 2,500 in Shreveport. Most Louisiana homes already have heat pumps because they're the default for new construction in hot climates. Natural gas is around $1.20/therm but most people don't have gas lines anyway.

Heat pumps are the obvious choice. Low electricity costs + high cooling loads + minimal heating = huge savings potential. A modern SEER2 18+ heat pump will cut your bills $40-70/month compared to an old 10-SEER unit. That's $500-850/year. Payback in 5-7 years is typical, faster if you add solar.

Updated December 2024•Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,470
Full electrification
Available Incentives
$10,100
Federal + state + utility
CO₂ Reduction
12.1 tons
Per year

What Do Energy Costs Look Like in Louisiana?

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

Electricity Rate
$0.115/kWh
Natural Gas Rate
$1.38/therm
Average Electric Bill
$142/month
Average Gas Bill
$52/month
Climate Zone
hot
Heating Degree Days
1,500
Cooling Degree Days
2,700
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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

Which Upgrades Pay Off the Fastest?

I've broken down the economics 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-$2,300
Net Cost$9,700 - $19,700
Annual Savings$77/yr
Payback PeriodNot Recommended
Lifetime ROI13%
CO₂ Reduction1.8 tons/yr
☀️

Solar Panels

Upfront Cost$15,000 - $30,000
Total Incentives-$4,500
Net Cost$10,500 - $21,000
Annual Savings$932/yr
Payback Period17.8 years
Lifetime ROI121%
CO₂ Reduction3.8 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$2,200
Net Cost$300 - $2,300
Annual Savings$241/yr
Payback Period6.5 years
Lifetime ROI80%
CO₂ Reduction1.8 tons/yr
⚡

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$1,100
Net Cost$-300 - $1,400
Annual Savings$1,220/yr
Payback Period0.6 years
Lifetime ROI1574%
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
-$10,100
Net Cost After Incentives
$20,200 - $48,900
Annual Energy Savings
$2,470/year
Lifetime Savings (18 years)
$44,461
Simple Payback
15.6 years
💡

Best ROI for Louisiana

Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 0.6 years and an ROI of 1574%.

0.0 years slower than average compared to the national average.

Ready to electrify your Louisiana home?

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