Inflation Reduction Act Incentives and Heat Pump Installation
I know, I just posted a very specific question about my heat pump estimates (and thank you for your answers!). But here’s a more general question: Should I even be doing this?
We’re in southern Maine. We currently have a 20-year-old boiler which is working fine and also heats our domestic hot water. We’d be looking at heat pumps primarily for heat, although some AC on a really hot day would be nice — but not crucial.
We’re motivated by current rebates and possible tax breaks in the Inflation Reduction act. We also hope heat pumps will heat our house for less than the oil boiler… but with high electric rates here in Maine, I’m not sure that’s the case, at least in the near future.
We’ll be adding a system that needs to be maintained (along with the oil boiler).
What are people’s thoughts about this? Maybe it’s already been discussed, in which case just point me to the thread.
Thanks again!
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If heating oil is at $5.27/gallon according to the EIA, that’s about $48/mmbtu. As long as your electricity is less than $.49/kwh, you’ll be saving money and it’s much cleaner. I pay about 1/4th of that, but your rates will be different no doubt. The AC is a great side benefit.
Be sure to read Jon Harrod’s recent explanation of the incentives for homeowners: The Inflation Reduction Act and Residential Tax Credits. I think you will surmise that yes, now is the time.
I think the green-ish answer is that you don't replace something that's working fine; wait until it's on its last legs. At 20 years, you should be doing your research, but if it's working, you don't have to pull the trigger yet.
Related specifically to ASHPs, I've been told that the refrigerants are changing again, starting in less than two years time. The new refrigerants will be more environmentally friendly, but they will require different compressors. While the current refrigerants will be around for a while, they will become increasingly scarce and increasingly expensive. Opinions that I can see are somewhat split on this, but if you can wait, I would.
What’s being replaced here? The boiler can stay, just will burn less or zero oil.
Nothing's being replaced. The boiler would remain as a backup and also because it is set up to heat our domestic hot water. We'd be adding the heat pumps.
A heat pump makes a ton of sense since Maines electricity is over 80% renewable and some of the cheapest in New England
The savings with a heat pump are astronomical right now in Maine. Efficiency Maine has a great winter fuel cost comparison website. The prices update often but heating oil is now over $5 a gallon. At current prices a heat pump would save you over $3k compared to an oil boiler.
https://www.efficiencymaine.com/at-home/heating-cost-comparison/
I'm hoping you're correct. We are proceeding - I put the deposit down yesterday. I haven't thoroughly studied electric rates, but I know they've been rising here in Maine (and are due to rise again) because of the issues around the natural gas supply that is used to generate a chunk of our power.