For many Maine homeowners, the cost of filling an oil tank has become difficult to ignore. When a single delivery can reach well over $1,000, it is reasonable to ask whether a cold-climate heat pump could lower heating costs while making the home more comfortable.
This guide compares heat pumps vs. oil heating costs in Maine using current state energy-price data. It also explains why actual savings vary and what homeowners should consider before changing how they heat their homes.
What Does an Oil Delivery Cost in Maine?
According to the Maine Department of Energy Resources, the statewide average cash price for heating oil was $5.77 per gallon on September 14, 2026. The surveyed prices ranged from $5.00 to $6.30 per gallon, depending on the supplier and region.
At the statewide average, common delivery amounts would cost approximately:
That helps explain why some homeowners are being quoted $1,500 or more to fill an oil tank. The total cost for an entire winter can be substantially higher when a home requires multiple deliveries.
How Do Heat Pump Heating Costs Compare With Oil?
The fairest comparison is not simply a gallon of oil against one kilowatt-hour of electricity. The systems use energy differently, so Maine compares the cost of producing the same amount of useful heat.
Using Maine’s September 2026 figures, air-source heat pumps delivered heat for approximately 25% to 31% less than heating oil. The state calculation reflects the efficiency of heat pumps, which move heat rather than creating it through combustion.
Could Electricity for a Heat Pump Cost Less Than One Oil Fill?
It can happen, particularly in an efficient home with properly sized equipment, but it should not be treated as a guarantee. One oil delivery is not the same measurement as an entire heating season. Some households use several tanks of oil each winter, while others use much less.
A better way to estimate savings is to look at the home’s historical oil consumption and compare the amount of heat it purchased with the expected seasonal performance of a proposed heat-pump system. Efficiency Maine provides a home heating cost comparison calculator for this purpose.
During an in-home consultation, BANN can also review the layout, existing heating system, electrical capacity and the areas the homeowner wants the heat pumps to serve.
Can Heat Pumps Handle a Maine Winter?
Modern cold-climate heat pumps are designed for low outdoor temperatures. Efficiency Maine reports that many current systems provide efficient heating at temperatures down to -22°F or lower, depending on the model.
Successful winter performance still depends on choosing the right equipment and installing it correctly. Important considerations include:
- Calculating the home’s heating load instead of sizing by square footage alone
- Selecting equipment with adequate low-temperature heating capacity
- Positioning indoor units so heat can reach the intended rooms
- Locating and elevating outdoor equipment for snow and drainage
- Maintaining filters, coils and unrestricted airflow
- Planning appropriate supplemental or emergency heat when needed
Learn more about BANN’s heat pump installation and replacement services in Maine.
Should You Remove the Oil System?
Not necessarily. Many Maine homeowners initially use heat pumps for most of their heating while retaining the existing boiler or furnace as backup. That can reduce oil use without requiring the homeowner to remove a functioning system immediately.
However, homeowners seeking a whole-home Efficiency Maine rebate must follow the program’s current requirements. These generally require the heat pumps to serve as the primary heating system, with an existing boiler or furnace reserved for emergency backup. Eligibility and program rules should always be confirmed before the project begins.
Efficiency Maine Heat Pump Rebates
Qualified whole-home installations may currently receive Efficiency Maine rebates. As of September 2026, published maximums include:
- Low income: up to $9,000
- Moderate income: up to $6,000
- Any income: up to $3,000
The amount and structure depend on the equipment type, the number of eligible outdoor units, income eligibility and whether the installation meets whole-home program requirements. Programs can change, so homeowners should confirm current terms before purchasing equipment.
BANN is an Efficiency Maine Residential Registered Vendor and can help homeowners understand the installation and rebate process. Review our Maine heat pump rebate information for additional details.
What Affects the Cost of a Heat Pump Installation?
The installation price varies because every home is different. The primary factors include:
- The number and capacity of indoor and outdoor units
- Single-zone, multi-zone or ducted equipment
- Line-set length and routing
- Electrical-panel capacity and required circuit work
- Outdoor-unit stand, wall bracket or pad
- Condensate drainage and cold-weather protection
- Rebate eligibility and whole-home sizing requirements
Financing may be available for qualified homeowners. Visit our electrical and heat pump financing page to review available options.
Is Switching From Oil to Heat Pumps Worth It?
For many Maine households, heat pumps can reduce reliance on oil while adding efficient air conditioning and dehumidification during the summer. The strongest candidates are homes where the equipment can be sized correctly, indoor units can distribute heat effectively and the homeowner plans to operate the system consistently.
The right decision is not based on oil prices alone. It should account for comfort, existing equipment condition, electrical capacity, rebate eligibility, financing and the homeowner’s long-term plans.
Compare Heat Pump Options for Your Maine Home
BANN Home Electrical & Heat Pump Services installs cold-climate heat pumps throughout Southern, Midcoast and select Central Maine communities. We can evaluate your home’s heating needs, electrical system and available installation options.
Request a Heat Pump Estimate Call 207-406-3918Frequently Asked Questions
Are heat pumps cheaper to operate than oil heat in Maine?
Current Maine energy-price comparisons show a lower cost per unit of delivered heat for air-source heat pumps than for heating oil. The exact savings for a particular home depend on oil consumption, electricity rates, insulation, equipment performance and how the system is operated.
Can a heat pump heat an entire Maine home?
Yes, when the system is designed for the home’s heating load and layout. Some homes use multiple single-zone systems, while others use multi-zone or ducted equipment. Supplemental or emergency heat may still be part of the design.
Do heat pumps work when it is below zero?
Cold-climate models are designed to operate at very low temperatures, although capacity and efficiency vary by model. Proper sizing and equipment selection are especially important for Maine winters.
Do I have to remove my oil boiler to install heat pumps?
No. A homeowner may keep an existing boiler or furnace as backup. However, whole-home rebate programs may require the fossil-fuel system to be reserved for emergency backup, so current eligibility requirements should be reviewed before installation.
How much are Efficiency Maine heat pump rebates?
As of September 2026, published whole-home rebate maximums reach $9,000 for qualifying low-income households, $6,000 for qualifying moderate-income households and $3,000 for any-income households. Equipment and installation requirements apply, and incentives may change.
Sources and date: Heating-fuel figures are based on the Maine Department of Energy Resources survey dated September 14, 2026. Rebate information was reviewed from Efficiency Maine in September 2026. Energy prices, program requirements and incentives are subject to change. Estimates in this article are for general educational purposes and are not a guarantee of savings.