Is Electrification Worth It in Utah?

Salt Lake City: 6,000 heating degree days, terrible winter air quality, and Rocky Mountain Power.

Natural gas costs $0.95/therm. Electricity runs $0.11/kWh. You need real heating, and the Wasatch Front has some of the worst winter air inversions in America. Gas furnaces contribute to particulate pollution that makes Salt Lake's winter air quality worse than Los Angeles.

The economic case for heat pumps in Utah is marginal—payback around 10-12 years if you have gas. But the air quality case is strong. If you care about not making winter inversions worse, switch to a heat pump. If you're heating with propane, it's an easy financial decision too ($1,100+ annual savings).

Updated December 2024•Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,082
Full electrification
Available Incentives
$10,800
Federal + state + utility
CO₂ Reduction
14.3 tons
Per year

Utah Energy Costs

Electricity Rate
$0.115/kWh
Natural Gas Rate
$1.08/therm
Average Electric Bill
$118/month
Average Gas Bill
$62/month
Climate Zone
cold
Heating Degree Days
5,900
Cooling Degree Days
1,100
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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 - $19,400
Annual Savings$-35/yr
Payback PeriodNot Recommended
Lifetime ROI2%
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-$2,400
Net Cost$100 - $2,100
Annual Savings$152/yr
Payback Period10.6 years
Lifetime ROI52%
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$1,220/yr
Payback Period0.3 years
Lifetime ROI1574%
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
$2,082/year
Lifetime Savings (18 years)
$37,479
Simple Payback
18.5 years
💡

Best ROI for Utah

Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 0.3 years and an ROI of 1574%.

0.0 years slower than average compared to the national average.

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