Loading NuWatt Energy...
We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
Loading NuWatt Energy...
Propane is the second most common heating fuel in rural Maine, and at $3.38 per gallon it's expensive. Switching to a heat pump saves CMP customers about $1,400 per year and Versant customers about $1,180 per year.
Maine has extremely limited natural gas infrastructure. Outside of the Portland and Bangor corridors, most homes heat with oil or propane. Propane is especially common in rural communities throughout Aroostook, Washington, Hancock, and the western mountains. Over 60% of Maine homes heat with oil, and propane captures much of the remainder in areas without gas lines.
Propane prices in Maine are especially volatile during harsh winters. Delivery surcharges, minimum order requirements (often 100+ gallons), and emergency delivery fees add to the true cost of propane heating.
Maine has two electric utilities with significantly different rates, which affects your heat pump savings. Central Maine Power (CMP) serves about 70% of the state at $0.27/kWh, while Versant Power serves northern and eastern Maine at $0.32/kWh. Both territories still save substantially compared to propane.
Southern & Central Maine (~70% of customers)
Northern & Eastern Maine (~30% of customers)
Both territories save significantly. Even Versant customers at $0.32/kWh save over $1,100/yr compared to propane. CMP customers save $220/yr more due to the lower electricity rate. Modern cold-climate heat pumps achieve a seasonal average COP of 2.8 in Maine's climate zones.
Propane-heated homes are among the strongest candidates for heat pump conversion in Maine, second only to oil-heated homes in total savings. The high cost per BTU of propane combined with delivery logistics makes the switch especially attractive for rural homeowners.
Not every propane-heated home in Maine needs a complete system replacement. Many homeowners start with ductless mini-splits in their most-used living spaces and keep propane as backup. This phased approach reduces upfront cost while capturing most of the savings.
Best for: Budget-conscious homeowners, older homes that need weatherization first, homes where you want to test a heat pump before committing.
Best for: Well-insulated homes, homeowners committed to eliminating fossil fuels, homes where propane furnace is at end of life.
Efficiency Maine provides tiered rebates based on household income. You must use an Efficiency Maine Registered Vendor to qualify. Rebates are applied at the point of purchase for a maximum of 3 indoor units per home.
Important: The federal Section 25C energy efficiency tax credit expired on December 31, 2025 and is no longer available. Efficiency Maine rebates are the primary financial incentive for heat pump installations in 2026. HEAR rebates may also be available for mobile homes and affordable multifamily housing (see our income-eligible guide).
Beyond the raw cost per gallon, propane heating in rural Maine creates logistical challenges that electricity-powered heat pumps completely eliminate. Maine's geography and harsh winters make fuel delivery especially unreliable.
This projection assumes 4% annual propane price inflation, 2% electricity rate increases, and standard Efficiency Maine rebates of $1,000/unit for 3 units ($3,000 total).
| Year | Propane Cost | HP Cost (CMP) | Annual Savings | Cumulative |
|---|---|---|---|---|
| 1 | $2,570 | $1,170 | $1,400 | $1,400 |
| 2 | $2,673 | $1,193 | $1,480 | $2,880 |
| 3 | $2,780 | $1,217 | $1,563 | $4,443 |
| 4 | $2,891 | $1,241 | $1,650 | $6,093 |
| 5 | $3,007 | $1,266 | $1,741 | $7,834 |
| 6 | $3,127 | $1,291 | $1,836 | $9,670 |
| 7 | $3,252 | $1,317 | $1,935 | $11,605 |
| 8 | $3,382 | $1,343 | $2,039 | $13,644 |
| 9 | $3,517 | $1,370 | $2,147 | $15,791 |
| 10 | $3,658 | $1,398 | $2,260 | $18,051 |
Over 10 years, a CMP-territory homeowner saves approximately $18,000 compared to continued propane heating. This exceeds the typical out-of-pocket cost of a whole-home heat pump system after Efficiency Maine rebates.
Complete guide to Efficiency Maine rebates and income tiers
Cost comparison for oil-heated homes
Utility rate comparison and impact on HP economics
Efficiency Maine Registered Vendor requirement and checklist
Propane-heated Maine homes save $1,180-$1,400 per year with a heat pump. Efficiency Maine rebates cover $1,000-$3,000 per unit. Get your free assessment today.
Get a Free Heat Pump Quote