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New Hampshire is #2 in the nation for oil-heated homes. With oil at $3.69/gallon, the typical NH homeowner spends $2,768/year on heating oil. A cold-climate heat pump cuts that to ~$1,050 — saving $1,700+ every year.
Last updated: February 2026
NH homeowners switching from oil to a cold-climate heat pump save approximately $1,700 per year in heating costs. Oil at $3.69/gallon costs $2,768/year for a typical home (750 gallons). A heat pump at $0.25/kWh with a COP of 3.0 costs ~$1,050/year for the same heating output — and provides air conditioning in summer at no additional equipment cost.
in the nation for oil-heated homes
of NH households still heat with oil
average annual savings with a heat pump
Only Maine has a higher percentage of oil-heated homes. New Hampshire's cold winters and limited natural gas infrastructure make oil the default heating fuel — and the biggest opportunity for savings.
Oil at $3.69/gallon vs cold-climate heat pump at $0.25/kWh (COP 3.0). All figures are annual operating costs — equipment costs not included.
| Home Size | Oil Usage | Oil Cost/Year | Heat Pump/Year | Annual Savings |
|---|---|---|---|---|
Small 1,200 sq ft | 500 gal | $1,845 | $750 | $1,095 |
Medium 2,000 sq ft | 750 gal | $2,768 | $1,050 | $1,718 |
Large 3,000 sq ft | 1,100 gal | $4,059 | $1,550 | $2,509 |
1,200 sq ft · 500 gal/year
2,000 sq ft · 750 gal/year
3,000 sq ft · 1,100 gal/year
Oil price: $3.69/gallon (NH NHDES/EIA February 2026). Heat pump assumes standard residential rate of $0.25/kWh and seasonal COP of 3.0. Oil furnace efficiency: 85%. Actual costs vary by home insulation, thermostat settings, and local utility rates.
Enter your current fuel type and annual usage to see how much you could save with a heat pump. The calculator uses current NH fuel prices and heat pump performance data.
Current price: $3.69 $/gallon
Note: New Hampshire does not have a special heat pump electric rate like Massachusetts. All calculations use the standard NH residential rate of ~$0.25/kWh.
Based on NH fuel prices as of February 2026 (oil $3.69/gal, propane $3.62/gal, electric $0.25/kWh). Heat pump assumes COP 3.0 (cold-climate average). Actual savings depend on home size, insulation, and usage patterns.
The full process from assessment to completed installation takes 4-8 weeks. Here is each step with expected timelines.
Schedule a no-cost home energy assessment through NHSaves. An auditor evaluates your insulation, air sealing, and heating system to determine the right heat pump sizing.
Your installer performs a Manual J load calculation to determine the exact heating and cooling capacity your home needs. This ensures proper sizing for NH winters.
Submit your rebate application through your utility (Eversource, Liberty, Unitil, or NHEC). Standard rebate is $250/ton up to $1,250 for oil-to-heat-pump conversions.
Professional installation of your cold-climate heat pump system. Ductless mini-splits take 1 day; ducted systems take 2-3 days. No ductwork needed for mini-splits.
Licensed contractor removes the oil tank and performs soil testing if required. Indoor tank removal costs $500-$1,000; underground tanks cost $1,000-$2,000+ with soil remediation.
Register your heat pump with your utility for any available programs. NH does not have a special heat pump electric rate, but enrollment ensures you receive all applicable benefits.
Once you are confident in your heat pump, removing the oil tank eliminates future leak risk and frees up space.
New Hampshire's incentive landscape for heat pumps in 2026. NHSaves is the primary program, with HEAR federal rebates pending launch.
The federal Section 25C energy efficiency tax credit (previously up to $2,000 for heat pumps) expired December 31, 2025. It is no longer available for any installations in 2026. NHSaves and HEAR are the remaining incentives for NH homeowners.
Unlike Massachusetts (which offers 0% HEAT Loans through Mass Save), New Hampshire does not currently have a 0% financing program for heat pump installations. Standard financing through installers or home improvement loans are the available options.
Switching from oil to a heat pump reduces your carbon footprint significantly, even when accounting for electricity generation.
Emitted by a typical oil-heated NH home (750 gal x 22.4 lbs CO2/gal)
Emitted by a heat pump using ISO-NE grid electricity (improving yearly as grid gets cleaner)
Per household — equivalent to removing a car from the road for 6 months
Note: As ISO New England adds more renewable energy to the grid, heat pump emissions continue to decrease. If you pair your heat pump with a solar system, your heating emissions can approach zero.
Complete guide to NHSaves rebates by utility
Read guideFull cost breakdown by system type
Read guidePerformance data at sub-zero temperatures
Read guidePropane at $3.62/gal vs heat pump savings
Read guideNortheast-wide guide with state-by-state incentives
Read guideEversource, Liberty, Unitil, NHEC rate comparison
Read guideNuWatt Energy helps New Hampshire homeowners switch from oil to high-efficiency cold-climate heat pumps. Get a free assessment and see your personalized savings estimate.