HEAT PUMPS

Heat pumps do exactly what their name implies: they pump heat from one area to another. This means they move heat, not create it, making them a more efficient heating and cooling system. The video below provides more explanation of how they heat and cool your home.

Heat pumps can be 3-4 times more efficient than traditional heating systems, providing more heat per unit of energy.

Heat pumps serve as both a heater and an air conditioner, making them versatile year-round.

Heat pumps can last 15-20 years, offering long-term savings and reliability.

Modern heat pumps are designed to work efficiently even in temperatures as low as -20 °F.

These systems require minimal upkeep, with an annual check-up recommended.

Page updated January 20, 2026

POTENTIAL SAVINGS

Heat pumps produce the largest savings for homeowners in cold climates, meaning homeowners in Maine can see bigger savings than those in other states. Over time, heat pumps can save you close to 50% on energy bills compared to conventional heating methods like gas or oil. This means an average savings of around $950 a year. However, the exact amount of savings will depend on factors such as:

The size of your home
How energy efficient your home is
How you currently heat your home

Installing a heat pump has also been found to increase home value, with one study estimating the increase to be $10,400 to $17,000.

FINANCIAL INCENTIVES

STATE REBATES

Efficiency Maine offers several heat pump rebates; however, some are available only to low-income homeowners. The income guidelines for Efficiency Maine are:

Low Income: A member of the household participates in MaineCare, HEAP, SNAP, or TANF
Moderate Income: For a single filer, $70,000, and for joint filers, $100,000 maximum
Any income: Individuals making above the moderate-income threshold

Whole Home Heat Pumps

Whole-home rebates are the only rebates available to moderate- and any-income homeowners. These rebate structures require that the heat pump system serve as the home's primary heating system. There are two whole-home rebate options: ducted and non-ducted.

For the non-ducted whole-home system, the heat pumps must be sized to at least 80% of the home’s peak heating load to qualify for the rebate. If the home already has a heat pump but needs a second to reach 80% of the heating load, that second heat pump would qualify for the rebate. In contrast, if a home has no heat pumps or only one is installed, it will most likely not qualify for the rebate. The rebate also only applies to single-zone units, meaning one indoor unit per outdoor unit. Finally, the heat pump must be installed by an Efficiency Maine-registered vendor; a list of eligible vendors can be found here.

The rebate amounts are:

Low-income homeowners can receive $3,000 per eligible outdoor unit with a lifetime limit of $9,000 per home.
Moderate-income homeowners can receive $2,000 per eligible outdoor unit with a lifetime limit of $6,000 per home.
Any income homeowners can receive $1,000 per eligible outdoor unit with a lifetime limit of $3,000 per home.

For the ducted whole-home system, the heat pump must be sized for 100% of the home's peak heating load to qualify for the rebate. If the rebate is used to install a heat pump system in an existing home, all fossil-fuel forced hot-air furnaces must be removed. Finally, the heat pump must be installed by an Efficiency Maine-registered vendor; a list of eligible vendors can be found here.

The rebate amounts are:

Low-income homeowners can receive $9,000 per home.
Moderate-income homeowners can receive $6,000 per home.
Any income homeowners can receive $3,000 per home.

Manufactured (Mobile) Home Initiative

This initiative from Efficiency Maine helps low-income homeowners transition from heating with propane or kerosene to a ducted heat pump system, by covering $12,900 of the total $14,900 project costs.

Eligible homeowners must participate in HEAP, SNAP, TANF, or MaineCare, or have an income of 80% or less of their county's median income, and reside in one of the eligible towns. To see if you qualify, please refer to this table.

To learn more about the program and apply, please visit Efficiency Maine.

Supplemental Heat Pump

This rebate provides $3,000 to low-income homeowners looking to install a single heat pump. The heat pump must be the first one installed at the residence, and the rebate does count toward the property's lifetime rebate cap. Since this is a supplemental heat pump, the whole home heating requirements do not apply.

To learn more about the program and apply, please visit Efficiency Maine.

FEDERAL TAX CREDIT

The federal tax credit for heat pumps expired at the end of 2025.