Is Electrification Worth It in Oregon?

Oregon has cheap electricity ($0.11/kWh) and expensive natural gas ($1.85/therm).

That's the opposite of most states, and it makes electrification math completely different. You're in a mild climate (4,500 heating degree days in Portland, less in Eugene), you get Energy Trust of Oregon rebates up to $2,500, and your electricity comes mostly from hydro—so it's cheap and clean.

This is a no-brainer. Oregon is secretly one of the best states for heat pumps. You'll save $400-900/year on heating alone, qualify for $7,500+ in combined incentives, and your payback period is typically 4-7 years. The only question is ducted vs. ductless—and that depends on your house.

Updated December 2024Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,387
Full electrification
Available Incentives
$12,300
Federal + state + utility
CO₂ Reduction
12.8 tons
Per year

Oregon Energy Costs

Electricity Rate
$0.118/kWh
Natural Gas Rate
$1.38/therm
Average Electric Bill
$122/month
Average Gas Bill
$72/month
Climate Zone
mixed
Heating Degree Days
4,600
Cooling Degree Days
450

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-$3,500
Net Cost$8,500 - $18,500
Annual Savings$114/yr
Payback PeriodNot Recommended
Lifetime ROI17%
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$828/yr
Payback Period20.0 years
Lifetime ROI107%
CO₂ Reduction3.3 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$2,800
Net Cost$-300 - $1,700
Annual Savings$237/yr
Payback Period4.0 years
Lifetime ROI78%
CO₂ Reduction1.8 tons/yr

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$1,500
Net Cost$-700 - $1,000
Annual Savings$1,208/yr
Payback Period0.2 years
Lifetime ROI1559%
CO₂ Reduction4.8 tons/yr

Full Electrification Package

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$12,300
Net Cost After Incentives
$18,000 - $46,700
Annual Energy Savings
$2,387/year
Lifetime Savings (18 years)
$42,968
Simple Payback
15.2 years
💡

Best ROI for Oregon

Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 0.2 years and an ROI of 1559%.

0.0 years slower than average compared to the national average.

Ready to electrify your Oregon home?

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