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Your electric bill will go up. Your total energy costs will go down. Here is the honest math for CMP and Versant customers switching from oil.
The better question is: Will my total energy costs go down?
Over 60% of Maine homes heat with oil — the highest percentage in the nation. At $3.82 per gallon (2026 average), a typical Maine household burns through 800-900 gallons per year, spending $3,050-$3,440 just on heating fuel. That number has been climbing steadily.
When you switch to a heat pump, you are replacing that $3,000+ oil bill with electricity. Yes, your electric bill rises. But it rises by far less than the oil cost you eliminate.
Annual Oil Cost
$3,230
845 gal at $3.82/gal
Heat Pump Electric Cost
$1,640–$1,940
CMP to Versant range
Net Annual Savings
$1,290–$1,590
Even after higher electric bill
Select your utility and current heating fuel to see how a heat pump changes your monthly costs.
Total spent on heating oil per year
Estimated Annual Net Savings
$968/yr
You save $81/month on average by switching from heating oil to a heat pump.
$2,500/yr
Heating Oil — this goes away with a heat pump
+$1,532/yr
~5,673 kWh/yr at $0.27/kWh
Save $161/mo
Electric bill rises ~$255/mo but fuel bill drops ~$417/mo
Roughly the same as current AC
Heat pump cooling is as efficient or better than traditional AC
How it works: Your heat pump operates at an average COP of 3.1 in Maine, meaning it produces 3.1x more heat energy than the electricity it consumes. Oil furnaces are only 78-87% efficient — most of the energy goes up the chimney.
Rate discount available: Efficiency Maine offers $1,000-$3,000 per heat pump unit in rebates (income-dependent). Maine also has the highest oil heating costs in the US (~$3.82/gallon), making the switch to heat pumps especially compelling.
Month-by-month, here is what to expect after installing a heat pump in a typical 2,000 sq ft Maine home.
This is where you see the largest electric bill jump. Your heat pump runs heavily to replace what your oil burner used to provide. In the coldest months, efficiency drops as outdoor temps fall, meaning more kWh per BTU of heat.
CMP Customers ($0.27/kWh)
Electric bill increase: $130–$165/month
~1,500-1,900 additional kWh/month
Versant Customers ($0.32/kWh)
Electric bill increase: $155–$195/month
Same kWh, higher per-unit cost
But remember: You are no longer buying oil. A typical January oil delivery of 150-200 gallons ($575-$765) disappears entirely. Net winter savings: $400-$600/month.
Shoulder seasons are where heat pumps shine brightest. Milder temperatures mean the heat pump runs at its highest efficiency (COP 3.5-4.0). Electric increase is modest while oil use in these months also drops.
Electric bill increase: $40–$70/month (both utilities)
Replaces $80-$150/month in oil that would have been used for shoulder-season heating
Maine summers are short, but increasingly warm. Your heat pump provides air conditioning — something most oil-heated homes lack. This is additional electricity usage, but it replaces the cost of window AC units or just suffering through the heat.
Electric bill increase: $25–$50/month for cooling
Only 400 CDD in Maine — cooling demand is minimal compared to 7,500 HDD heating
Electric Bill Increase
+$1,640–$1,940
per year
Oil Bill Eliminated
−$3,230
per year
Net Savings
$1,290–$1,590
per year
Your utility determines your electricity rate, which directly impacts your heat pump operating costs. CMP serves roughly 70% of Maine; Versant covers the remaining 30%.
~70% of Maine
Service area: Southern and central Maine including Portland, Augusta, Lewiston, Brunswick, Biddeford, and the midcoast region.
~30% of Maine
Service area: Northern and eastern Maine including Bangor, Presque Isle, Houlton, Calais, and the Aroostook County region.
While there is no special heat pump electricity rate in Maine, Efficiency Maine offers substantial upfront rebates that reduce your payback period. These are applied at the point of sale through registered contractors.
Standard Income
$1,000
per unit
Moderate Income
$2,000
80-150% AMI
Low Income
$3,000
Below 80% AMI
Maximum 3 units per home. A typical 2-zone system receives $2,000-$6,000 in total rebates depending on income level.
With 7,500 heating degree days and design temps from -1F (Portland) to -18F (Caribou), Maine demands cold-climate heat pumps and realistic efficiency expectations.
Portland, Augusta, Lewiston, Brunswick. Design temp: -1F to -5F. Modern cold-climate heat pumps handle this with significant margin.
Bangor, Presque Isle, Caribou, Houlton. Design temp: -10F to -18F. Dual-fuel backup recommended for extreme cold events.
| Outdoor Temp | Heat Pump COP | Cost per 100K BTU (CMP) | vs Oil ($3.82/gal) |
|---|---|---|---|
| 40F+ | 3.5-4.0 | $2.26 | 50% cheaper |
| 20F | 2.8-3.2 | $2.83 | 37% cheaper |
| 0F | 2.0-2.5 | $3.95 | 12% cheaper |
| -10F | 1.5-2.0 | $5.27 | 17% more expensive |
Oil cost: $4.49 per 100,000 BTU (85% efficient boiler at $3.82/gal). Heat pumps are cheaper at all temps above roughly -5F. Below that, dual-fuel backup is more economical.
You cannot avoid some electric bill increase — that is the nature of fuel switching. But you can keep the increase as small as possible.
Insulation and air sealing reduce the BTUs your heat pump needs to produce. A well-insulated Maine home can cut heating demand by 25-40%, directly reducing the electricity increase. Efficiency Maine offers weatherization rebates up to $8,000.
Heat pumps work best at consistent temperatures. Avoid large setbacks (lowering temp by 5F+ at night) — recovery uses inefficient resistance heat on some models. A 68F daytime / 65F nighttime schedule works well.
Standard heat pumps lose capacity rapidly below 20F. Cold-climate models (Mitsubishi Hyper-Heat, Fujitsu XLTH, Daikin Aurora) maintain higher COP at low temps, using less electricity per BTU. This matters significantly in Maine winters.
Heat pumps periodically reverse to melt frost from outdoor coils. Keep the outdoor unit clear of snow and ice buildup. A simple raised platform (12-18 inches) prevents snow burial and reduces defrost frequency, saving electricity.
In Zone 6, set your oil backup to kick in below -10F to -13F. The heat pump handles 90-95% of heating hours; oil covers the rare extreme cold. This limits your oil to 50-100 gal/yr ($190-$382) while keeping electricity costs lower than all-electric.
Use your heat pump's app or a smart energy monitor (Sense, Emporia Vue) to track usage in real time. Identify if zones are running when not needed. Many Maine homeowners find simple adjustments cut heat pump electricity by 10-15%.
The most effective way to neutralize your heat pump's electric bill increase is solar panels. Maine offers 1:1 net metering for rooftop solar — excess summer generation offsets winter heat pump consumption.
Heat Pump adds
6,000-7,000 kWh/yr
8-10 kW solar produces
9,500-11,800 kWh/yr
A properly sized solar array not only covers the heat pump increase but can offset your baseline electric usage too. The combined payback on solar + heat pump is typically 8-10 years in CMP territory.
Solar + Heat Pump Guide for MaineCommon questions about heat pump electric bill impact in Maine.
Yes, your electric bill will increase because you are shifting heating energy from oil or propane to electricity. However, your total energy costs typically drop significantly. A typical Maine home spending $3,230/yr on oil at $3.82/gal would see electric bills rise by about $1,640-$1,940/yr (depending on CMP or Versant rates) while eliminating the $3,230 oil bill entirely — a net savings of $1,290-$1,590/yr.
For a typical 2,000 sq ft Maine home, expect your electric bill to increase by approximately $135-$160/month during winter heating months (December-March). Summer cooling adds roughly $30-$50/month. Annual electricity increase is typically $1,640 (CMP at $0.27/kWh) to $1,940 (Versant at $0.32/kWh). This replaces $3,230+ in annual oil costs.
A heat pump is significantly cheaper. Oil at $3.82/gal with an 85% efficient boiler costs roughly $4.49 per 100,000 BTU. A heat pump at CMP rates ($0.27/kWh) with a COP of 2.8 costs about $2.83 per 100,000 BTU — 37% less. Even at Versant rates ($0.32/kWh), heat pump heating costs about $3.36 per 100,000 BTU, still 25% cheaper than oil.
Neither CMP nor Versant currently offers a dedicated heat pump rate plan in Maine. However, Efficiency Maine offers $1,000-$3,000 per heat pump unit in rebates depending on income level. These rebates effectively reduce your upfront cost rather than your ongoing rate, but they shorten the payback period by 1-3 years.
Yes. A properly sized solar array can offset most or all of the additional electricity your heat pump uses. A typical 8-10 kW system in Maine generates roughly 9,500-11,800 kWh/yr, which covers the 6,000-7,000 kWh/yr a heat pump adds. Maine offers 1:1 net metering for rooftop solar, meaning excess summer production offsets winter consumption.
Maine ranges from Zone 5 (southern, -1F design temp) to Zone 6 (northern, -18F). Colder temps reduce heat pump efficiency: COP drops from 3.5+ above 40F to about 2.0-2.5 at 0F. This means more kWh per BTU of heat during the coldest months. Cold-climate models (Mitsubishi Hyper-Heat, Fujitsu XLTH) maintain output down to -13F to -15F, keeping efficiency reasonable.
Efficiency Maine $1K-$3K/unit rebates
Read guideFull installation pricing breakdown
Read guideComplete cost comparison at $3.82/gal
Read guideSavings analysis at $3.38/gal propane
Read guideModels rated for Zone 5-6 winters
Read guideOffset your electric increase with solar
Read guideGet a free quote from Efficiency Maine-registered contractors. See your exact bill impact with local CMP or Versant rates.