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Get a Free QuoteYes, your electric bill goes up. But when you stop buying oil at $3.50+/gallon or propane at $3.30/gallon, your total energy cost drops by $1,000-$1,800/year. Here are the real numbers for all four NH utilities.
+$80-$150/mo
Electric Bill Increase
Winter heating months
-$300-$500/mo
Fuel Bill Eliminated
Oil heat savings
$1,000-$1,800
Net Annual Savings
vs. oil or propane
Focusing only on your electric bill misses the full picture. A heat pump replaces your heating fuel — and the fuel savings almost always outweigh the extra electricity.
Switching from Oil
$1,200-$1,800/yr
~$100-$300/mo heating season
Switching from Propane
$800-$1,500/yr
~$80-$200/mo heating season
Switching from Electric Baseboard
$2,000-$2,700/yr
COP 1.0 to COP 3.0+ = 66% less electricity
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
$1,103/yr
You save $92/month on average by switching from heating oil to a heat pump.
$2,500/yr
Heating Oil — this goes away with a heat pump
+$1,397/yr
~5,586 kWh/yr at $0.25/kWh
Save $184/mo
Electric bill rises ~$233/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 New Hampshire, 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: NHSaves offers $1,000-$3,000 per heat pump unit in rebates. NH Electric Co-op has the lowest rate at $0.22/kWh, making heat pumps especially cost-effective in their territory.
Winter is when your electric bill increases the most, but it is also when you save the most by eliminating fuel deliveries.
Electric Bill Change
+$80-$150/mo
Fuel Bill Change
-$300-$500/mo (oil) or -$200-$350/mo (propane)
Net Effect
$100-$350/mo net savings
Heat pump handles 90%+ of heating in modern cold-climate units. Backup resistance heat only kicks in below -15°F in northern NH.
Electric Bill Change
+$20-$50/mo
Fuel Bill Change
-$50-$120/mo (oil/propane)
Net Effect
$30-$70/mo net savings
Mild temperatures mean the heat pump runs at peak efficiency (COP 3.5-4.5). This is where heat pumps truly excel.
Electric Bill Change
$0 change (or slight savings)
Fuel Bill Change
No heating fuel in summer
Net Effect
$0-$15/mo savings vs old AC
Only 500 CDD in NH. AC use is modest. Heat pumps cool as efficiently as standard central AC or better. Oil/propane provide no cooling.
NH has four electric utilities with rates from $0.22-$0.26/kWh. Your utility determines your heat pump operating cost.
Southern & Seacoast NH
~71% of customers
Largest NH utility. Supply portion fluctuates with ISO-NE wholesale market.
Est. HP heating cost/year
$1,350
Saves $1,450/yr vs oil
Salem, Keene, Littleton areas
~6% of customers
Smallest investor-owned. Serves scattered service territories.
Est. HP heating cost/year
$1,296
Saves $1,504/yr vs oil
Concord, Exeter, Hampton areas
~11% of customers
Highest rate of the four. Supply rate changes every 6 months.
Est. HP heating cost/year
$1,404
Saves $1,396/yr vs oil
Central & Northern NH
~12% of customers
Member-owned co-op. Lowest rate in NH. Covers rural areas.
Est. HP heating cost/year
$1,188
Saves $1,612/yr vs oil
The Community Power Coalition of NH (CPCNH) now serves over 40% of the state's electricity customers. If your town participates, you may get a competitive supply rate that reduces your overall cost per kWh, directly lowering your heat pump operating expense. Check with your municipality.
All four NH utilities participate in the NHSaves program, offering rebates of $1,000-$3,000 per heat pump unit to offset installation costs. Income-eligible households may qualify for enhanced rebates. These rebates reduce your payback period but do not change your ongoing electricity rate. No dedicated heat pump electricity rate exists in NH.
New Hampshire is one of the coldest states in the Lower 48. Here is how extreme cold affects your heat pump's efficiency and your electric bill.
47°F (rated)
Cheapest operation
32°F (freezing)
Still very efficient
17°F (typical NH Jan)
60-70% cheaper than oil
5°F (cold snap)
50% cheaper than oil
-5°F (extreme)
Still cheaper than oil
-15°F (northern NH)
Backup may kick in
Zone 5 — Southern NH (Manchester, Nashua, Keene)
Design temp around -1\u00b0F to 5\u00b0F. Cold-climate heat pumps handle nearly 100% of heating. Little to no backup needed. Annual HP electricity cost: $1,200-$1,500.
Zone 6 — Northern NH (Berlin, Littleton, Colebrook)
Design temp around -15\u00b0F to -20\u00b0F. Heat pumps handle 85-95% of heating. Backup system recommended for extreme cold snaps. Annual HP electricity cost: $1,400-$1,800.
About 40% of NH homes heat with oil ($3.50+/gal) and another 15% use propane ($3.30/gal). Even with a lower COP in cold weather, heat pumps cost 40-60% less to operate than oil. The colder it gets, the higher your savings relative to oil because oil efficiency stays fixed while heat pumps only dip slightly.
You cannot eliminate the electric bill increase entirely (unless you add solar), but these strategies keep it as low as possible.
Models rated to -15°F or below (Mitsubishi Hyper-Heat, Fujitsu XLTH) maintain COP 2.0+ in NH winters, using less electricity per BTU.
An oversized system short-cycles and wastes energy. A properly sized Manual J load calculation ensures efficient operation.
NHSaves offers insulation rebates. Reducing heat loss means your heat pump runs less, directly lowering your electric bill.
Heat pumps work best at steady temperatures. Avoid deep setbacks (more than 3-4°F) which force the system to work harder to recover.
CPCNH towns may offer competitive supply rates. Check if your municipality participates to potentially lower your per-kWh cost.
Adding 2-4 extra solar panels offsets the heat pump electricity increase entirely. NH net metering banks summer credits for winter use.
A heat pump adds 4,000-6,000 kWh/year to your electric bill. A properly sized 8-12 kW solar array produces 10,000-14,000 kWh/year in NH — more than enough to cover the increase. With NH net metering crediting at ~85% of retail (locked through 2041), summer solar credits bank toward winter heat pump usage.
Extra panels needed
3-5 panels
Extra solar cost
~$2,500-$4,500
Payback on extras
2-4 years
Expect your electric bill to increase $80-$150/month during winter (December through March). However, you eliminate oil deliveries ($300-$500/month in winter) or propane costs, so your net savings are $100-$350/month during the heating season. Over a full year, most NH homeowners save $1,000-$1,800 total.
NH Electric Co-op has the lowest rate at $0.22/kWh, making heat pump operation about 15% cheaper than Unitil at $0.26/kWh. None of the four NH utilities currently offer a dedicated heat pump rate discount. NHSaves rebates ($1,000-$3,000 per unit) help offset installation costs regardless of utility.
Yes, especially when replacing oil or propane. Cold-climate heat pumps like Mitsubishi Hyper-Heat and Fujitsu XLTH maintain COP 2.0+ at -13°F. Even at NH electric rates ($0.22-$0.26/kWh), heating with a heat pump costs roughly $1,350/year versus $2,800 for oil, saving $1,450 annually.
Cold-climate heat pumps can be the primary heat source for most NH homes. In southern NH (Zone 5), a heat pump alone is often sufficient. Northern NH (Zone 6, where temps drop below -15°F) benefits from keeping a backup system. Many homeowners keep their old boiler as emergency backup but rarely use it.
Community Power Coalitions (CPCNH) now serve 40%+ of NH electricity customers with competitive supply rates. If your town participates, you may get a lower supply rate than your default utility, which reduces heat pump operating costs. Check with your town to see if they offer a Community Power option.
Yes. A properly sized 8-12 kW solar array produces roughly 10,000-14,000 kWh/year in NH, more than enough to offset the 4,000-6,000 additional kWh a heat pump uses. NH net metering credits excess at approximately 85% of retail value, locked through 2041. Combined solar+heat pump can reduce your total energy cost to near zero.
NHSaves rebates, utility incentives, and income-eligible programs.
Read guideFull pricing breakdown for cold-climate heat pumps in New Hampshire.
Read guideWhich heat pump type works best for your New Hampshire home layout.
Read guideDetailed cost comparison for oil-heated NH homes switching to heat pumps.
Read guideSide-by-side comparison for propane-heated homes in rural NH.
Read guideGet a personalized estimate that accounts for your current fuel type, home size, and your specific NH utility rate. Free, no obligation.