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Federal rebates for gas-to-electric heating conversions have ended — but electric-to-heat-pump upgrades still qualify. What changed

Maine home energy costs & incentives

The clearest heat pump adoption story in the country — over 200,000 installed, and now more common than oil heat in new Maine homes.

Prices pulled August 16, 2026

What energy costs here

27.78¢

per kWh, residential electricity

61% above the national average of 17.3¢. 6th most expensive of 51.

Up 63% since 2021 (13% a year), against 27% nationally.

$1.83

per therm, residential natural gas

$18.95 per thousand cubic feet, 2024 annual. National average $1.48/therm.

Up 15% since 2021 (3.5% a year).

Heat pump vs. gas furnace — Close call

Maine's electricity-to-gas price ratio works out at 4.5-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.

Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates

State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.

What's different in Maine

Efficiency Maine runs residential heat pump rebates statewide and publishes a contractor finder. Rebates are claimed through a participating contractor, so who you hire determines whether you get one.

Maine is the practical rebuttal to the idea that heat pumps don't work in cold climates. Efficiency Maine reports over 200,000 units installed across Maine homes and businesses, and cites a state assessment finding they are now more common than oil heat in new construction. If your neighbours are heating a Maine winter this way, the technology question is settled — what's left is sizing and installation quality.

Most Maine homes are displacing oil or propane rather than natural gas, which changes the comparison entirely. Our electricity-to-gas ratio below assumes gas; against delivered oil at Maine prices, the heat pump case is considerably stronger than that number suggests.

Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.

Maine programs

Efficiency Maine — heat pump rebates

Statewide residential heat pump rebates, claimed through a participating contractor, plus a contractor finder and commercial programs.

Program details

The federal position — the same everywhere

  • Residential Clean Energy Credit (Section 25D)Ended

    Ended. No credit for expenditures made after 31 December 2025.

  • Energy Efficient Home Improvement Credit (Section 25C)Ended

    Ended. No credit for property placed in service after 31 December 2025.

Full detail, sources and changelog on the national incentive tracker.

Where to check for your address

Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.

Not tax advice

Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.

If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.

Run the numbers for your house

These open with Maine's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.

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