Propane vs. Heat Pump in Maine: A Comparison for LP Users

Editor's note (September 2026): The 30% federal tax credit described below is the federal 25C credit. It expired December 31, 2025 and does not apply to work completed in 2026 or later, so the “through 2032” timeline and the net-cost figures below reflect the period when the credit was still available. Efficiency Maine rebates remain available and are now the primary incentive for heat pump projects. Learn more about what has changed.

If you heat with propane (LP) in Maine, start by reducing the heat your home needs. Air sealing and insulation improve comfort and reduce the energy you buy, helping limit the impact of price swings across all fuels. Then choose the heating system that fits your home and comfort priorities.

A cost comparison may favor propane or a cold-climate heat pump at a given moment, but that can change quickly with market prices. Horizon Homes installs both. Our goal is to find the best fit for your comfort and home.

Planning a heating upgrade in Greater Portland? Compare our cold-climate heat pump installations with high-efficiency natural gas and propane heating. Request a free energy assessment to discuss air sealing and insulation first, along with your existing system, cooling needs, and project priorities. The visit is a visual walkthrough only, with no diagnostic testing or obligation.

Reduce the Heating Load First

Air sealing and insulation come before equipment selection. A well-insulated, air-sealed home loses less heat, whether you use propane or a cold-climate heat pump. Reducing that load helps protect your household budget from price fluctuations without depending on any fuel staying cheaper.

At Horizon Homes, we take a whole-home approach: air seal and insulate first, then right-size the heating system for the reduced load. We consider your home's heat distribution, cooling needs, and comfort preferences together.

How to Compare Fuel Costs

Propane has about 66% of the energy per gallon compared to heating oil (91,500 BTU vs. 138,500 BTU). That means gallons alone do not tell you what it costs to heat your home. Compare the cost of usable heat, accounting for fuel prices and equipment performance.

The result is a snapshot of the prices and assumptions you use, not a lasting ranking of fuels.

Propane Prices in Maine This Week

The table below pulls the current weekly survey from the Maine Department of Energy Resources for the Southeast / Greater Portland region. Check the survey date shown in the table. Each update is a dated snapshot, and the comparison can shift as propane and electricity prices change.

The third column is the one that matters. Price per gallon tells you what the delivery truck charges. Cost per million BTU delivered tells you what it costs to heat the house, after you account for how much energy is in the fuel and how much of it the equipment turns into usable heat.

As a dated snapshot, the September 8, 2026 survey for the Southeast / Greater Portland region priced propane at $3.59 per gallon, within the $3.36 to $3.68 band the region has held since April. That snapshot does not predict future prices. Your own price can sit outside that band. Prices can vary between dealers based on delivery distance, tank ownership, pre-buy contracts, and how many suppliers serve your road. Check a recent delivery ticket before you assume the survey average is your price.

What the Numbers Look Like

Our heating cost comparison calculator runs the same weekly price feed against your actual system, its age, and how much fuel you use. It includes propane, oil, natural gas, cold-climate heat pumps, and electric baseboard so you can compare them side by side.

Compare propane vs. heat pump costs with today's prices

Your delivery records show your actual propane usage. Use those records and your electricity bill when comparing options for your home.

Both propane and electricity prices can change. A calculation at today's prices can help you plan, but it cannot establish which system will cost less to run over its lifetime. Reducing the home's heating load helps with either choice.

Beyond the Cost Comparison

Cost is the question most propane users start with, but it's rarely the only factor in the decision:

Existing heat distribution. A high-efficiency propane boiler can suit a home with radiators, baseboard, or radiant floors that the homeowner wants to keep. That familiar comfort matters alongside operating costs.

Heating and cooling in one system. A cold-climate heat pump provides winter heating, summer cooling, and zone control. Its fit depends on your home's layout and heating load, along with the rooms where you want cooling.

Deliveries and tank arrangements. A hybrid setup keeps propane deliveries and the tank in use. Tank rental fees vary by agreement. A fully electric conversion may remove that expense only if you no longer need propane for any appliances and end the rental agreement.

Changing energy prices. Propane and electricity both carry price uncertainty. Compare your own rates and usage, and consider how the choice fits your comfort needs if prices change.

Solar offset potential. Solar can supply some of the electricity a cold-climate heat pump uses. The value depends on the home, solar production, and electricity pricing. Air sealing and insulation first reduce the energy the home needs.

Equipment Costs

The following historical equipment and incentive example reflects the period described in the editor's note, not a current quote. For a project today, compare estimates for your home and check current, income-dependent Efficiency Maine rebates.

A whole-home cold-climate heat pump system for a 2,000-square-foot home typically runs $14,000 to $20,000 before incentives. After Efficiency Maine rebates ($1,000 to $3,000 per outdoor unit for any income level), the net cost comes down to $11,000 to $17,000. Moderate-income and low-income households qualify for larger rebates ($2,000 or $3,000 per unit). There's also a 30% federal tax credit available through 2032.

Compare the installed cost with the comfort features you need, the equipment you can keep, and any changes to your propane tank arrangement. A cold-climate heat pump adds cooling and zone control; a propane system may fit the heat distribution you already enjoy.

See what the equipment and operating costs look like for your situation

What Happens to My Propane System?

A whole-home cold-climate heat pump system is sized for the full heating load. A hybrid system instead keeps the boiler as the primary heat source and uses cold-climate heat pumps for cooling and supplemental heat. We review rebate eligibility for the proposed design separately.

A fully electric conversion is a separate choice. In a hybrid setup, the propane tank remains in use for the primary boiler.

What About a High-Efficiency Propane Boiler?

At Horizon Homes, we install high-efficiency wall-hung condensing boilers (both natural gas and propane). These systems can suit homes with existing hydronic distribution, including radiators, baseboard, and radiant floors. Keeping that form of heat may be a priority for your household.

A high-efficiency propane boiler and a cold-climate heat pump work differently. The boiler burns fuel to create heat; the cold-climate heat pump uses electricity to move heat. Equipment efficiency alone does not determine operating cost. Fuel prices, outdoor conditions, and your home's heating load all affect the comparison.

We can plan a propane boiler as the primary heat source, cold-climate heat pumps sized for the whole home, or a hybrid setup with the boiler providing primary heat and cold-climate heat pumps adding cooling and supplemental heat. The right choice depends on your home and comfort priorities.

Frequently Asked Questions

What are propane prices in Maine right now?

The Maine Department of Energy Resources publishes a weekly fuel price survey by region. As of the September 8, 2026 survey, propane in the Southeast / Greater Portland region priced at $3.59 per gallon, within the $3.36 to $3.68 range the region has held since April. Those figures are a dated snapshot, not a forecast. Check the survey date on the price table earlier in this guide for the latest available update. Your delivered price may differ based on your supplier, your tank arrangement, and how far the truck drives.

Is it worth switching from propane to a heat pump?

It depends on your home, comfort needs, and existing system. Start by reducing the heating load with air sealing and insulation. Then compare a high-efficiency propane system, cold-climate heat pumps, or a hybrid setup. Run the numbers with today's propane prices as a snapshot that changes with propane and electricity prices.

Can a heat pump replace propane heat in a cold climate?

A whole-home cold-climate heat pump system must be sized for the full heating load. In a hybrid setup, the propane boiler remains the primary heat source and cold-climate heat pumps provide cooling and supplemental heat. We review rebate eligibility separately.

What happens to my propane system?

In a hybrid setup, the propane boiler remains the primary heat source and cold-climate heat pumps add cooling and supplemental heat. The propane tank remains in use. A fully electric conversion requires a separate plan.

Is propane or electricity cheaper for heating?

Operating costs depend on fuel prices, equipment performance, and the home's heating load. System fit also matters: a propane boiler provides primary heat through existing hydronic distribution, while cold-climate heat pumps add cooling, zone control, and supplemental heat. Check the comparison with this week's prices.

See the Numbers for Your Home

Start with a free energy assessment to discuss air sealing, insulation, your current system, and your comfort priorities. Then use our heating cost comparison calculator to explore propane and cold-climate heat pump operating costs at the prices shown. Treat the result as a dated snapshot while we help you find the best fit for your home.

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