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Cold-climate heat pumps have caught up. With state incentives covering 25–65% of upfront cost and operating costs 35–45% lower than gas furnaces, the 10-year math now favors heat pumps in most of NuWatt’s states.
Myth: “Heat pumps don't work below freezing”
Reality: Modern cold-climate heat pumps (Mitsubishi Hyper-Heat, Daikin, Bosch) operate efficiently down to -13°F. They maintain rated heating capacity well below 0°F and are standard equipment in Scandinavia and northern Japan.
Myth: “Heat pumps are more expensive to run”
Reality: Heat pumps use 35–45% less energy than gas furnaces. A coefficient of performance (COP) of 3.0+ means you get 3 units of heat for every 1 unit of electricity consumed — gas furnaces max out at 0.98 efficiency.
Myth: “You need backup heat”
Reality: Properly sized cold-climate systems handle 95%+ of heating hours without backup. Some dual-fuel setups keep an existing furnace as backup for extreme cold snaps, but this is optional with modern equipment.
Myth: “Heat pumps only last 10 years”
Reality: Modern units last 15–20 years with routine maintenance, comparable to gas furnaces. Ductless mini-splits have fewer moving parts than furnaces and often outlast them.
All figures include installed equipment costs and 10 years of operating expenses. Heat pump totals reflect state incentives applied.
| State | HP Upfront | Furnace Upfront | HP Annual | Furnace Annual | State Incentive | 10-Yr HP | 10-Yr Furnace | Winner |
|---|---|---|---|---|---|---|---|---|
| Massachusetts | $12,000 | $6,000 | $1,200/yr | $2,100/yr | $10,000 | $24,000 | $27,000 | HP saves $3,000 |
| New Hampshire | $11,500 | $5,800 | $1,300/yr | $2,200/yr | $4,500 | $24,500 | $27,800 | HP saves $3,300 |
| Connecticut | $12,500 | $6,200 | $1,250/yr | $2,000/yr | $7,500 | $17,500 | $26,200 | HP saves $8,700 |
| Rhode Island | $12,000 | $6,000 | $1,200/yr | $2,050/yr | $5,000 | $19,000 | $26,500 | HP saves $7,500 |
| Maine | $11,000 | $5,500 | $1,350/yr | $2,400/yr | $8,000 | $16,500 | $29,500 | HP saves $13,000 |
| Vermont | $11,500 | $5,700 | $1,300/yr | $2,300/yr | $6,000 | $18,500 | $28,700 | HP saves $10,200 |
| New Jersey | $12,500 | $6,500 | $1,100/yr | $1,800/yr | $4,000 | $19,500 | $24,500 | HP saves $5,000 |
| Pennsylvania | $11,500 | $5,500 | $1,150/yr | $1,900/yr | $3,000 | $20,000 | $24,500 | HP saves $4,500 |
| Texas | $10,000 | $5,000 | $800/yr | $1,200/yr | $1,500 | $16,500 | $17,000 | HP saves $500 |
These state programs are the primary financial incentives for heat pump installations in 2026. The federal residential tax credit (Section 25D) expired December 31, 2025.
Mass Save
available rebate
NHSaves
available rebate
Energize CT
available rebate
RI Energy
available rebate
Efficiency Maine
available rebate
Efficiency VT
available rebate
NJ Clean Energy
available rebate
PA Programs
available rebate
Local rebates
available rebate
When you pair a heat pump with solar panels, your heating cost approaches $0. Solar generates the electricity; the heat pump uses it at 3x efficiency. Every 1 kWh from your roof delivers 3 kWh of heat to your home.
Homeowners who bundle solar + heat pump typically eliminate 70–90% of their combined electric and gas bills. In states with strong net metering (MA, NJ, RI), solar credits offset heat pump electricity costs year-round.
Yes. New England states offer the strongest heat pump incentives in the country. Mass Save covers up to $10,000, Efficiency Maine up to $8,000, and Energize CT up to $7,500. Combined with 35–45% lower operating costs, heat pumps reach payback in 3–6 years and save $3,000–13,000 over 10 years compared to gas furnaces.
A whole-home cold-climate heat pump system costs $10,000–$12,500 before incentives, depending on your state and home size. After state rebates, the net cost ranges from $2,000 in Maine (with Efficiency Maine) to $8,500 in Pennsylvania. Ductless mini-split systems for 1–2 zones start at $4,000–$6,000.
Absolutely. Maine has the strongest heat pump adoption rate in New England. Efficiency Maine has rebated over 100,000 heat pumps. Cold-climate models from Mitsubishi, Daikin, and Bosch operate efficiently down to -13°F — well below typical Maine winter lows.
Yes. A ducted heat pump can use your existing ductwork and replace a furnace directly. If you prefer ductless, mini-split units mount on walls in each room. Many homeowners choose a dual-fuel approach — installing a heat pump as the primary system and keeping the furnace as backup for the coldest nights.
Ducted heat pumps connect to existing ductwork just like a furnace and are invisible once installed. Ductless mini-splits mount on walls and don’t need ducts, making them ideal for older homes or room additions. Ducted systems cost slightly more but provide whole-home coverage through a single unit.
No. The federal residential energy tax credit under Section 25D expired on December 31, 2025. Homeowner cash or loan purchases no longer receive a federal tax credit. However, state incentive programs remain generous — Mass Save offers up to $10,000, Efficiency Maine up to $8,000, and Energize CT up to $7,500 for qualifying heat pump installations.
Enter your home details and current heating system to see how much you could save with a cold-climate heat pump — including your state’s incentives.