Is Electrification Worth It in North Dakota?

North Dakota is the final exam for cold-climate heat pumps.

Bismarck gets 8,900 heating degree days. -30°F happens multiple times per winter. Natural gas costs $1.05/therm from Bakken production. Electricity runs $0.12/kWh. Ten years ago, I would have said heat pumps don't make sense here. But technology has improved dramatically.

You need a true cold-climate heat pump—Mitsubishi Hyper-Heat or equivalent—with backup heat integration. If you're heating with propane or oil, the savings are massive ($1,500+ per year). With natural gas, it's marginal unless you really care about emissions. This is one of the few states where a high-efficiency gas furnace is still defensible.

Updated December 2024Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,159
Full electrification
Available Incentives
$10,350
Federal + state + utility
CO₂ Reduction
14.3 tons
Per year

North Dakota Energy Costs

Electricity Rate
$0.115/kWh
Natural Gas Rate
$1.15/therm
Average Electric Bill
$125/month
Average Gas Bill
$88/month
Climate Zone
cold
Heating Degree Days
8,800
Cooling Degree Days
650

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$21/yr
Payback PeriodNot Recommended
Lifetime ROI8%
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$745/yr
Payback Period22.2 years
Lifetime ROI97%
CO₂ Reduction3.1 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$2,300
Net Cost$200 - $2,200
Annual Savings$173/yr
Payback Period9.4 years
Lifetime ROI58%
CO₂ Reduction1.8 tons/yr

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$1,150
Net Cost$-350 - $1,350
Annual Savings$1,220/yr
Payback Period0.5 years
Lifetime ROI1574%
CO₂ Reduction4.8 tons/yr

Full Electrification Package

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$10,350
Net Cost After Incentives
$19,950 - $48,650
Annual Energy Savings
$2,159/year
Lifetime Savings (18 years)
$38,865
Simple Payback
17.9 years
💡

Best ROI for North Dakota

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 1574%.

0.0 years slower than average compared to the national average.

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