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New subsidies in 2024 could boost heat pumps in Maine

New subsidies in 2024 could boost heat pumps in Maine

Photo: 560 WGAN Newsradio


PORTLAND (Portland Press Herald) – Heat pumps have been a popular solution for reducing greenhouse gas emissions in buildings, an issue that has been a significant source of carbon. In Maine, heat pump installation has increased, and the trend is expected to continue as heat pumps become more versatile, and subsidies help defray upfront costs.

Eben Perkins, vice president of Competitive Energy Services, used to experience freezing temperatures in his South Portland home, but after upgrading his insulation and installing an air-source heat pump system, he said his home is much more comfortable. Perkins advises those considering heat pumps to consider whole house options since it can heat and cool a home efficiently, while reducing greenhouse gas emissions.

Maine has become a leader in heat pump installation, with Governor Janet Mills announcing that the state has exceeded its 100,000 heat pump installation goal by 2025, two years ahead of schedule. The state has set an updated target of installing 175,000 more heat pumps by 2027, with the Inflation Reduction Act providing $71.6 million in home-energy-rebate funding to the state.

Efficiency Maine, a quasi-government agency that oversees state energy incentives, has been promoting heat pump incentives, including state rebates of up to $8,000 and a federal tax credit of up to $2,600. The program offers an 80% cost rebate for low-income applicants, an up to $8,000 lifetime limit, and a 60% rebate for higher-income recipients, with a $6,000 lifetime limit.

Heat pumps have been used for decades to heat homes, but they have only recently become more popular, replacing oil or gas furnaces. They run on electricity and can be used both to heat and cool buildings. Heat pumps extract heat from outdoor air or underground and transfer it inside or vice versa. It is now possible to create multiple heating and cooling zones in homes, with a focus on system design.

Joel Rosenberg, Senior Program Manager of Special Projects at Rewiring America, attributed Maine’s success in heat pump installation to the lack of unified opposition, unlike natural gas utilities that are strong lobbying forces.

While homeowners may experience a jump in their electric bills with heat pumps, the costs will still be lower than for heating using fossil fuels. Combining solar power with heat pumps is an effective way to cut costs, but installing solar panels can also be costly on the front end.

Heat pumps are an excellent solution for reducing greenhouse gas emissions from buildings, and Maine’s success in heat pump installation can serve as an example for other regions to follow.

Heat pumps are gaining popularity in Maine as a sustainable solution for reducing greenhouse gas emissions in buildings. Maine has become a leader in heat pump installation, with a goal to install 175,000 more heat pumps by 2027. Efficiency Maine offers heat pump incentives, including state rebates of up to $8,000 and a federal tax credit of up to $2,600. Heat pumps extract heat from outdoor air or underground and transfer it inside, and can be used both to heat and cool buildings. Combining solar power with heat pumps is an effective way to cut costs, but installing solar panels can also be costly. Heat pumps are an excellent solution for reducing greenhouse gas emissions from buildings, and Maine’s success in heat pump installation can serve as an example for other regions to follow.

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