Is Electrification Worth It in Missouri?

St. Louis: Hot summers, cold-ish winters, and cheap energy.

About 4,900 heating degree days. Natural gas at $1.05/therm. Electricity around $0.11/kWh from Ameren Missouri. You need both heating and cooling, but neither is extreme. Most newer homes (post-2000) already have heat pumps because they're cost-effective in Missouri's moderate climate.

If you're replacing an old system, go with a heat pump. Your cooling efficiency gains alone will save $250-400/year, and heating costs will be similar to gas. Total payback around 7-9 years. If you're currently using propane or electric resistance, upgrade immediately—you're overpaying by $600-1,200 annually.

Updated December 2024•Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,316
Full electrification
Available Incentives
$10,400
Federal + state + utility
CO₂ Reduction
12.8 tons
Per year

Missouri Energy Costs

Electricity Rate
$0.125/kWh
Natural Gas Rate
$1.32/therm
Average Electric Bill
$132/month
Average Gas Bill
$68/month
Climate Zone
mixed
Heating Degree Days
4,900
Cooling Degree Days
1,350
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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-$2,400
Net Cost$9,600 - $19,600
Annual Savings$50/yr
Payback PeriodNot Recommended
Lifetime ROI10%
CO₂ Reduction2.9 tons/yr
☀️

Solar Panels

Upfront Cost$15,000 - $30,000
Total Incentives-$4,500
Net Cost$10,500 - $21,000
Annual Savings$878/yr
Payback Period18.8 years
Lifetime ROI114%
CO₂ Reduction3.3 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$2,300
Net Cost$200 - $2,200
Annual Savings$209/yr
Payback Period7.3 years
Lifetime ROI69%
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$1,180/yr
Payback Period0.4 years
Lifetime ROI1524%
CO₂ Reduction4.8 tons/yr

Full Electrification Package

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$10,400
Net Cost After Incentives
$19,900 - $48,600
Annual Energy Savings
$2,316/year
Lifetime Savings (18 years)
$41,681
Simple Payback
16.6 years
💡

Best ROI for Missouri

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 1524%.

0.0 years slower than average compared to the national average.

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