Governor Mills Announces Reduction of Heating Oil Reliance in Maine

Maine's reliance on home heating oil has dropped nearly 20 percent under the Mills Administration, driven by adoption of cost-saving, energy efficient heat pumps

Governor Janet Mills today announced that the share of Maine households reliant on oil as their primary heat source has fallen by nearly 20 percent from 2018 to 2024, a testament to the state's record adoption of high efficiency heat pumps.

In 2024, the portion of Maine households reliant on heating oil fell to 50 percent, the lowest in decades according to new federal data (PDF). This is down from 62 percent in 2018 and over 70 percent in 2010, continuing a historic downward trend strongly correlated with an increase in the use of high efficiency heat pumps for home heating -- a direct result of the Mills Administration's efforts to expand access to the technology.

"Since I took office, Maine's reliance on heating oil has dropped significantly thanks to our nation-leading work to promote cost saving measures, including programs focused on high efficiency heat pumps," said Governor Mills. "This progress is making a real difference for Maine people and businesses, improving their energy efficiency and cutting energy costs."

Maine set statutory goals in 2011 to cut oil consumption by 30 percent from 2007 levels by 2030 and at least 50 percent by 2050. The state has already surpassed the 2030 target and is on track to meet the 2050 goal.

"Maine has long aimed to reduce its dependence on heating oil, and this unprecedented drop shows how key investments in energy efficiency are lowering energy costs while growing our economy," said Dan Burgess, Acting Commissioner of the Maine Department of Energy Resources. "We must continue this progress to ensure more families and businesses are able to reap the benefits that affordable, efficient, modern heat pumps provide."

"The progress we're seeing with heat pumps as the primary heating system for so many Maine homes is a testament to how well the technology now performs in cold weather and how hard Maine's contractors have worked to market and install these systems," said Michael Stoddard, Executive Director of Efficiency Maine. "I think Maine boasts many of the best heat pump installers in the country. These crews can completely convert a home to heat pumps in four or five hours."

Maine remains the most heating fuel reliant state in the nation and spends more than $4.5 billion on imported petroleum annually. A recent study (PDF) commissioned by the Maine Office of the Public Advocate, with the Maine Electric Ratepayer Advisory Council, found low-income households in Maine are particularly reliant on oil for heat and spend about twice as much of their total household budget on energy as those that use electricity.

Heat pumps remain more cost effective and less volatile than heating oil and Maine has received national recognition for its leadership in heat pump adoption. In July 2023, Maine surpassed its goal of installing 100,000 heat pumps two years early. Governor Mills then set an ambitious new target of installing another 175,000 heat pumps in Maine by 2027. When the new goal is reached, the number of heat pumps installed in Maine homes, businesses, and public buildings during the Governor's time in office would reach 275,000.

State and Federal investments have helped propel Maine's rapid heat pump adoption. One year ago, Governor Mills launched a new Home Energy Rebate program funded by a $36 million grant from the U.S. Department of Energy. So far, the program has committed funds for nearly 450 heat pump installations in affordable housing units and mobile homes around the state. In April 2025, the Maine Public Utilities Commission approved Efficiency Maine Trust's Triennial Plan VI, which is expected to support adoption of heat pumps across 38,000 additional Maine homes.

The number of clean energy jobs in Maine reached nearly 15,600 in 2023 with energy efficiency jobs making up more than half of those positions. Currently, Maine has nearly 700 registered heat pump installers. Since 2022, the state has invested over $7 million in clean energy workforce development and innovation through the Clean Energy Partnership Program, an initiative of the Department of Energy Resources (DOER). Later this year, the Department plans to award an additional $1.2 million to support training programs in heat pump installation and maintenance, as well as weatherization.

Maine continues to be a leader in energy efficiency policy and programs with a recent scorecard placing the state tenth in the nation for most energy-efficient economy.

For more information on Maine heat pump rebate programs and other energy efficiency incentives, visit the Efficiency Maine website. For information about income-eligible home energy assistance including energy bill assistance, weatherization, and heat pump programs, contact your local Community Action Agency.