Is Electrification Worth It in South Dakota?

South Dakota: 7,200 heating degree days in Sioux Falls, -20°F winter lows, cheap electricity.

You need serious heating. Natural gas costs $1.15/therm. Electricity runs $0.12/kWh—mostly from hydro and wind. This is cold-climate heat pump territory. You need equipment that works at -15°F or you'll be running expensive resistance backup heat all winter.

If you're heating with propane (common in rural SD), a cold-climate heat pump will save you $1,100-1,700/year. With natural gas, payback is longer—10-14 years. The federal credit helps. Key decision point: Are you replacing both heating and cooling? If yes, go heat pump. If your furnace is only 8 years old, keep it.