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Maine is the most oil-dependent state in the country — over 60% of homes heat with oil. At $3.82/gal, that is a heavy financial burden. Switching to a heat pump saves approximately $1,590/year for CMP customers and $1,290/year for Versant customers. With Efficiency Maine rebates up to $3,000/unit and 100,000+ heat pumps already installed statewide, the case for switching has never been stronger.
Oil Heating
$3,230
845 gal x $3.82/gal
80% boiler efficiency
Heat Pump (CMP)
$1,640
6,070 kWh x $0.27/kWh
Save $1,590/yr
Heat Pump (Versant)
$1,940
6,070 kWh x $0.32/kWh
Save $1,290/yr
Based on average Maine home (1,800 sq ft), 80% efficient oil boiler, heat pump COP of 2.5. Oil at $3.82/gal. CMP at $0.27/kWh, Versant at $0.32/kWh. Does not include AC savings in summer.
Maine has unique conditions that make the oil-to-heat-pump switch more compelling than anywhere else in the country.
Over 60% of Maine homes heat with oil — the highest percentage in the nation. No other state is as exposed to oil price volatility. At $3.82/gal, a typical Maine household spends $3,230/year just on heating fuel. This creates the largest savings opportunity when switching to a heat pump.
Oil prices have swung from $2.50 to $5.80/gal over the past five years. At $5.80/gal (the 2022 peak), a Maine household would have spent $4,930 on heating. Heat pump electricity rates are far more stable. Switching eliminates exposure to global oil market shocks.
Maine has installed over 100,000 heat pumps — more per capita than almost any other state. This massive real-world deployment across multiple harsh winters proves the technology works. Efficiency Maine reports high customer satisfaction and confirmed energy savings.
Efficiency Maine offers $1,000-$3,000 per unit (max 3 units). This is one of the most generous state heat pump rebate programs in the country. Combined with the HEAT Loan program for low-interest financing, the upfront barrier to switching is significantly reduced.
| Factor | Oil Boiler | Heat Pump |
|---|---|---|
| Annual heating cost | $3,230 | $1,640 (CMP) / $1,940 (Versant) |
| Fuel price stability | Volatile (global market) | Stable (regulated utility rate) |
| Air conditioning | Not included | Included (heats and cools) |
| Equipment lifespan | 15-25 years | 15-20 years |
| Maintenance | Annual tune-up, nozzle/filter ($200-$400/yr) | Filter cleaning, annual check ($100-$200/yr) |
| CO2 emissions | 11,400 lbs/yr (13.5 lbs/gal x 845 gal) | ~3,600 lbs/yr (ME grid, improving) |
| Delivery logistics | Schedule deliveries, monitor tank, price shop | Automatic (electricity from grid) |
| Rebates available | None | $1,000-$3,000/unit (Efficiency Maine) |
| Power outage | Needs electricity for pump/controls | Needs electricity (generator/battery backup) |
Converting from oil to a heat pump is straightforward. Most installations are completed in 1-3 days. Here is what to expect.
Install heat pump alongside existing oil system. The most popular approach in Maine, especially for first-time heat pump owners.
Remove oil system entirely and rely solely on heat pump. Best for Zone 5 homeowners with well-insulated homes.
Switching from oil to a heat pump significantly reduces your carbon footprint. Oil is one of the dirtiest heating fuels.
Oil CO2 Emissions
11,400
lbs CO2 per year
13.5 lbs/gal x 845 gal
Heat Pump CO2
3,600
lbs CO2 per year
Maine grid (improving annually)
CO2 Reduction
68%
lower carbon footprint
7,800 lbs CO2 saved annually
Maine's grid is getting cleaner. Maine generates significant hydropower and is adding wind and solar capacity. As the grid decarbonizes, heat pump emissions will continue to drop. If you add rooftop solar, your heat pump can run on 100% clean energy.
Use our calculator to estimate your annual savings switching from oil to a heat pump. Adjust for your utility territory, oil usage, and heat pump efficiency.
Heating Oil
$3,050
/year
Heat Pump (CMP)
$1,460
/year
$1,590
10-year savings: $15,900
The federal Section 25C energy efficiency tax credit expired on December 31, 2025 under the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025. There is no federal tax credit available for residential heat pump purchases in 2026.
Efficiency Maine actively encourages oil-to-heat-pump conversions. Rebates are the same regardless of your current fuel source.
| Income Tier | Rebate/Unit | Max (3 Units) | Net Cost (2-zone, $14K) |
|---|---|---|---|
| Standard | $1,000 | $3,000 | $12,000 |
| Moderate-Income | $2,000 | $6,000 | $10,000 |
| Low-Income | $3,000 | $9,000 | $5,000 |
A typical Maine home burning about 845 gallons of oil per year at $3.82/gal spends approximately $3,230 on heating annually. A heat pump costs roughly $1,640/yr to operate at CMP's $0.27/kWh rate (or $1,940 at Versant's $0.32/kWh), saving approximately $1,590 per year for CMP customers or $1,290 for Versant customers.
Efficiency Maine offers tiered rebates: $1,000/unit for standard-income, $2,000/unit for moderate-income (80-150% AMI), and $3,000/unit for low-income (below 80% AMI). Maximum 3 units per home. The rebate is applied at the point of sale through registered contractors.
No, you are not required to remove your oil tank immediately. Many Maine homeowners keep their oil system as backup for the first winter — this is especially common in the dual-fuel approach. If you later remove the tank, underground tanks require professional decommissioning and soil testing. Above-ground tanks are simpler to remove. Some homeowners keep a minimal oil supply (100-200 gallons) for backup heating.
In southern Maine (Zone 5, Portland to Augusta), yes. Modern cold-climate heat pumps rated to -13F to -15F handle Zone 5 design temps (-1F to -5F) with ample margin. In northern Maine (Zone 6, Caribou at -18F), a dual-fuel hybrid with oil backup is recommended for the rare extreme cold events below -13F. Even in a dual-fuel setup, oil consumption drops from 845 gallons to approximately 50-100 gallons per year.
No. The federal Section 25C energy efficiency tax credit expired December 31, 2025 under the OBBBA. There is no federal tax credit for residential heat pumps in 2026. Efficiency Maine rebates ($1,000-$3,000/unit) are your primary incentive.
HEAR is partially active in Maine — only for mobile/manufactured homes and affordable multifamily housing. Standard single-family homeowners are NOT eligible for HEAR. If you live in a qualifying housing type, HEAR can provide up to $8,000 on top of Efficiency Maine rebates.
A typical oil-to-heat-pump conversion takes 1-3 days. Ductless mini-split installations (1-2 zones) are usually completed in one day. Multi-zone systems (3-5 zones) typically take 2 days. If electrical panel upgrades are needed, add another half day. The oil system is usually left in place initially as backup.
With the standard Efficiency Maine rebate ($1,000/unit x 2 = $2,000), net cost for a typical 2-zone system is about $12,000. At $1,590/yr savings (CMP territory), payback is approximately 7.5 years. With the low-income rebate ($3,000/unit x 2 = $6,000), net cost drops to $8,000 with a payback of about 5 years. Versant customers see slightly longer payback due to higher electricity rates.
Yes. Heat pumps provide both heating and cooling from a single system. If you currently rely on window AC units during Maine summers (which are getting hotter), a heat pump replaces both your oil heating system and your air conditioning. This adds significant value — central air alone would cost $3,000-$6,000 if installed separately.
In southern Maine (Zone 5), keeping the oil boiler as backup is optional but provides peace of mind during your first winter. Most homeowners find the heat pump handles the full load and eventually decommission the oil system. In northern Maine (Zone 6), keeping the oil boiler as a dual-fuel backup is strongly recommended for the rare extreme cold events below -13F to -15F.
Underground oil tanks can leak and contaminate soil and groundwater. If you plan to fully decommission your oil system, have the tank inspected. Above-ground tanks are lower risk but should still be properly drained and removed. Maine DEP has guidelines for tank removal. Some insurance companies offer discounts for removing old underground tanks.
CMP customers pay about $0.27/kWh and save approximately $1,590/yr vs oil. Versant customers pay about $0.32/kWh and save approximately $1,290/yr vs oil — about $300 less per year. Both still save significantly compared to oil at $3.82/gal. Versant customers should factor the higher rate into their ROI calculations and may benefit from a slightly longer payback acceptance.
$1K-$3K/unit, income-tiered.
Full pricing by system type.
Model comparison for Zone 5/6.
Efficiency Maine contractor list.
$0.27 vs $0.32/kWh comparison.
Propane at $3.38/gal comparison.
Over 100,000 Maine homeowners have already made the switch. With Efficiency Maine rebates up to $3,000/unit and annual savings of $1,290-$1,590, a heat pump pays for itself in 5-10 years while providing air conditioning too. Get a free assessment today.