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What does it actually cost to run a heat pump in Maine? Month by month, CMP vs Versant, compared to oil, propane, and kerosene. Real numbers for 1,200 to 2,500 sqft homes in a state where winter means business.
2026 Update: The federal 25C energy efficiency tax credit expired December 31, 2025. There is no federal tax credit for heat pumps in 2026. Efficiency Maine rebates ($1,000-$3,000/unit) remain active.
$2,215
Annual (CMP, 1,800 sqft)
$2,623
Annual (Versant, 1,800 sqft)
$2,399
Oil equivalent cost
$184
Savings vs oil (CMP)
A 1,800 sqft Maine home with a 2-zone cold-climate mini-split system (36,000 BTU). COP averages 2.5 in heating mode (drops to ~1.8 below 0F) and 4.0 in cooling mode.
| Month | Avg Temp | kWh Used | Mode | CMP Cost | Versant Cost | Oil Cost | Propane Cost |
|---|---|---|---|---|---|---|---|
| January | 18°F | 1,450 | Heating | $392 | $464 | $455 | $321 |
| February | 21°F | 1,320 | Heating | $356 | $422 | $413 | $291 |
| March | 30°F | 1,050 | Heating | $284 | $336 | $333 | $233 |
| April | 42°F | 620 | Heating | $167 | $198 | $193 | $135 |
| May | 53°F | 220 | Both | $59 | $70 | $53 | $37 |
| June | 63°F | 120 | Cooling | $32 | $38 | — | — |
| July | 69°F | 180 | Cooling | $49 | $58 | — | — |
| August | 67°F | 160 | Cooling | $43 | $51 | — | — |
| September | 58°F | 170 | Both | $46 | $54 | $35 | $24 |
| October | 46°F | 580 | Heating | $157 | $186 | $182 | $128 |
| November | 36°F | 980 | Heating | $265 | $314 | $308 | $216 |
| December | 23°F | 1,350 | Heating | $365 | $432 | $427 | $301 |
| Annual Total | — | 8,200 | — | $2,215 | $2,623 | $2,399 | $1,686 |
Oil at $3.50/gal, propane at $3.38/gal. Oil furnace efficiency 85%. Propane furnace efficiency 90%. Heat pump COP 2.5 average (drops below 0F). Costs are for space heating/cooling only — not water heating or other appliances. Portland-area weather data.
Heat pump costs scale roughly linearly with home size, but larger homes benefit from slightly better efficiency due to more consistent zone management.
| Home Size | Winter/mo (CMP) | Summer/mo (CMP) | Annual (CMP) | Annual (Versant) | Annual (Oil) | Savings vs Oil |
|---|---|---|---|---|---|---|
| 1,200 sqft | $175-280 | $25-40 | $1,680 | $1,990 | $2,950 | $1,270/yr |
| 1,500 sqft | $200-325 | $30-45 | $1,950 | $2,310 | $3,420 | $1,470/yr |
| 1,800 sqft | $240-390 | $35-50 | $2,215 | $2,623 | $3,880 | $1,665/yr |
| 2,200 sqft | $290-475 | $40-60 | $2,680 | $3,170 | $4,700 | $2,020/yr |
| 2,500 sqft | $330-540 | $45-65 | $3,050 | $3,610 | $5,350 | $2,300/yr |
60%+ of Maine homes — highest in US
Oil prices have ranged from $2.80-4.50/gal in Maine over the past 3 years. At $4.50/gal, annual oil costs jump to $5,000+ — making the heat pump savings even larger.
~15% of Maine homes
Propane is cheaper per BTU than oil, so the heat pump savings margin is smaller. However, propane prices in rural Maine can spike to $4.50+/gal during cold snaps when demand surges. Heat pumps eliminate this price volatility.
~5% of Maine homes, mostly rural
Kerosene is the most expensive common heating fuel in Maine. If you heat with kerosene, a heat pump delivers the largest savings of any fuel switch — paying for itself in 3-4 years with Efficiency Maine rebates.
~8% of Maine homes
Electric baseboard heating (COP 1.0) uses 2.5x more electricity than a heat pump (COP 2.5). Switching from baseboard to heat pump cuts your electric heating bill by 60% using the same electricity. This is the highest-ROI upgrade in Maine.
January is the most expensive month for heat pump operation in Maine. Average temperature is 18F, and your heat pump runs nearly 24/7. Here is how to manage it:
Unlike a furnace, dropping your thermostat 5-10F at night forces the heat pump to work much harder to recover in the morning. In Maine's extreme cold, this recovery period can activate expensive auxiliary electric heat. Set it and leave it at 68F. Maximum 2F setback.
Your outdoor unit will steam and make whooshing sounds during defrost cycles. This is normal and essential — do not try to "help" by pouring water on it or clearing ice manually. In Maine, expect 4-6 defrost cycles per day during January cold snaps.
January heat pump costs for a 1,800 sqft home: $392 (CMP) to $464 (Versant). This is still $60-90 less than oil. Budget accordingly and remember: summer months at $30-50/mo bring the annual average way down.
While running costs are what you pay monthly, Efficiency Maine rebates reduce your upfront purchase cost — which affects the payback calculation:
Available to all Maine households. Up to 3 units ($3,000 max). No income verification required.
2-unit system: $2,000 rebate
80-150% Area Median Income. Up to 3 units ($6,000 max). Income verification required.
2-unit system: $4,000 rebate
Below 80% AMI. Up to 3 units ($9,000 max). Income verification required.
2-unit system: $6,000 rebate
Monthly heat pump costs in Maine range from $30-65/month in summer (cooling only) to $160-540/month in winter (heating), depending on home size and utility. A typical 1,800 sqft home with CMP power spends $240-390/month during peak winter months (Dec-Feb) and $35-50/month for summer cooling. Annual total: $2,200-2,600.
Yes. A heat pump saves a typical Maine home $1,200-2,300/year compared to oil heating. At $3.50/gallon for oil and $0.27/kWh for CMP electricity, a heat pump with COP 2.5 delivers heat at roughly 60% of the cost of oil. The savings are even larger for Versant customers because the higher electric rate ($0.32/kWh) is still cheaper per BTU than oil.
In January (Maine average temp 18F), a heat pump heating a 1,800 sqft home uses approximately 1,400-1,500 kWh. At CMP rates ($0.27/kWh) this costs about $380-400/month. At Versant rates ($0.32/kWh) it costs about $450-480/month. This is the most expensive month for heat pump operation in Maine.
Modern cold-climate heat pumps (Mitsubishi Hyper-Heat, Fujitsu XLTH, Daikin Aurora) maintain heating capacity down to -15F to -22F. At extreme cold below -15F, efficiency drops but the unit still produces heat. Some systems include electric resistance backup that activates at the coldest temperatures. In northern Maine (Caribou, Presque Isle), expect 5-15 days per winter where auxiliary heat supplements the heat pump.
CMP is cheaper per kWh ($0.27 vs $0.32), so CMP customers pay about 16% less to operate a heat pump than Versant customers for the same home size. However, both utilities are significantly cheaper than oil or propane heating. CMP annual heat pump cost for a 1,800 sqft home: ~$2,215. Versant: ~$2,623. Both beat oil at ~$3,880.
December is the second-most-expensive heating month in Maine (after January). For a 1,800 sqft home: CMP customers pay approximately $365/month, Versant customers approximately $432/month. This compares to $427/month in oil costs for the same month. The heat pump is cheaper than oil even in the coldest months.
CMP offers a time-of-use rate option that can save heat pump customers 10-15% if they can shift heating to off-peak hours (11 PM - 7 AM). This works well with programmed overnight heating. Versant does not currently offer a specific heat pump rate plan. Both utilities simply charge their standard residential rate for heat pump electricity.
Your actual running costs depend on home size, insulation, and heating habits. Get a personalized estimate from a Maine-based installer.