Is Electrification Worth It in North Carolina?

North Carolina is heat pump country. Has been for 30 years.

Charlotte, Raleigh, Durham—most homes built after 1990 already have heat pumps. Mild winters (3,200 heating degree days), hot summers, and cheap electricity from Duke Energy ($0.11/kWh) make them a natural fit. The question isn't "should I get a heat pump"—it's "should I upgrade my old one?"

If your heat pump is 12+ years old, yes. Modern variable-speed units are 30-40% more efficient than what you probably have. That translates to $300-600/year in savings in North Carolina's climate. Add solar and you're looking at 6-8 year payback. Duke's net metering isn't amazing, but the sun hours make up for it.

Updated December 2024•Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,465
Full electrification
Available Incentives
$10,800
Federal + state + utility
CO₂ Reduction
12.8 tons
Per year

North Carolina Energy Costs

Electricity Rate
$0.128/kWh
Natural Gas Rate
$1.52/therm
Average Electric Bill
$138/month
Average Gas Bill
$62/month
Climate Zone
mixed
Heating Degree Days
3,700
Cooling Degree Days
1,450
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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-$2,600
Net Cost$9,400 - $19,400
Annual Savings$135/yr
Payback PeriodNot Recommended
Lifetime ROI19%
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$899/yr
Payback Period18.4 years
Lifetime ROI116%
CO₂ Reduction3.3 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$2,400
Net Cost$100 - $2,100
Annual Savings$264/yr
Payback Period5.1 years
Lifetime ROI87%
CO₂ Reduction1.8 tons/yr
⚡

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$1,300
Net Cost$-500 - $1,200
Annual Savings$1,168/yr
Payback Period0.4 years
Lifetime ROI1509%
CO₂ Reduction4.8 tons/yr

Full Electrification Package

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$10,800
Net Cost After Incentives
$19,500 - $48,200
Annual Energy Savings
$2,465/year
Lifetime Savings (18 years)
$44,379
Simple Payback
15.3 years
💡

Best ROI for North Carolina

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 1509%.

0.0 years slower than average compared to the national average.

Ready to electrify your North Carolina home?

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