Is Electrification Worth It in Ohio?

Ohio has cheap energy. Both gas and electric.

Natural gas averages $0.95/therm. Electricity runs $0.12-0.14/kWh depending on your utility. Climate is moderate—about 5,600 heating degree days in Columbus, more in Cleveland. You need real heating, but winter temps usually stay above 10°F. Heat pump rebates through AEP Ohio and other utilities help close the gap.

Heat pumps work fine in Ohio, but the economics aren't slam-dunk because gas is so cheap. Your payback period will probably be 8-12 years unless you're replacing oil/propane. The move that makes sense: If your AC is dying and your furnace is 15+ years old, replace both with a heat pump. Don't rip out a working 5-year-old furnace to go electric.

Updated December 2024•Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,299
Full electrification
Available Incentives
$10,600
Federal + state + utility
CO₂ Reduction
14.3 tons
Per year

What Do Energy Costs Look Like in Ohio?

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

Electricity Rate
$0.138/kWh
Natural Gas Rate
$1.42/therm
Average Electric Bill
$135/month
Average Gas Bill
$78/month
Climate Zone
cold
Heating Degree Days
5,800
Cooling Degree Days
850
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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-$2,500
Net Cost$9,500 - $19,500
Annual Savings$58/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$894/yr
Payback Period18.5 years
Lifetime ROI116%
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$219/yr
Payback Period6.6 years
Lifetime ROI73%
CO₂ Reduction1.8 tons/yr
⚡

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$1,250
Net Cost$-450 - $1,250
Annual Savings$1,128/yr
Payback Period0.6 years
Lifetime ROI1460%
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
-$10,600
Net Cost After Incentives
$19,700 - $48,400
Annual Energy Savings
$2,299/year
Lifetime Savings (18 years)
$41,382
Simple Payback
16.7 years
💡

Best ROI for Ohio

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 1460%.

0.0 years slower than average compared to the national average.

Ready to electrify your Ohio home?

Get free quotes from local contractors who specialize in heat pumps, solar, and electrification.

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