Maine households’ reliance on heating oil hits largest yearly drop since 2010

The share of Maine households that are reliant on oil as their primary heat source fell by more than six percent between 2022 and 2023, reported Maine Gov. Janet Mills.

This is the largest year over year decrease in oil usage since at least 2010. Over time, the use of oil to heat homes has fallen from over 70 percent in 2010 to just over 50 percent in 2023, according to the latest data from the U.S. Census Bureau’s American Community Survey. Further, since Mills took office, heating oil reliance in the state has dropped nearly 16 percent, which is three times larger than the year-over-year average since 2010.

The drop in heating oil reliance is offset by a significant increase in the use of heat pumps for home heating. This is a direct result of the Mills Administration’s efforts to expand access to heat pumps in Maine. Also, efficiency improvements to heating and cooling are a key strategy for reducing the state’s greenhouse gas emissions.

“When I took office, I made it a priority to help Maine households transition away from expensive, imported fossil fuels for heating and adopt high-efficiency heat pumps, which reduce household energy costs while keeping homes comfortable year-round,” Mills said. “I am proud to see those efforts paying off, with reliance on heating oil rapidly declining across Maine and more homes than ever adopting heat pumps for affordable heating and cooling. While Maine is still highly dependent on fossil fuels, we will continue to accelerate the transition to heat pumps by leveraging unprecedented clean energy investments by the Biden-Harris Administration.”

In July 2023, Maine surpassed its goal of installing 100,000 new heat pumps two years early. After that, Mills set a new target of installing another 175,000 heat pumps in Maine by 2027. Upon completion of this new goal, the number of heat pumps installed in Maine homes, businesses, and public buildings during her time in office would reach 275,000.

“For decades Maine has sought to reduce our over-reliance on heating oil for home heating and this unprecedented decline demonstrates how investments in energy efficiency — from incentive programs to workforce development — are transforming Maine’s economy by creating good jobs and cutting household energy costs,” Dan Burgess, director of the Maine Governor’s Energy Office, said. “While Maine still has more work to do to address its dependence on heating oil, recent progress is a sign that those investments are starting to pay off.”

In addition, new federal funding opportunities should expand access to heat pumps in Maine. U.S. Energy Secretary Jennifer Granholm came to Maine in September to announce the launch of a new Home Energy Rebate program funded by a $36 million grant through the Biden-Harris Inflation Reduction Act (IRA). Also, an additional $36 million to launch another IRA-funded heat pump rebate program is anticipated in early 2025.

This follows a $10 million from the Bipartisan Infrastructure Law in February and between $45 and $72 million for Maine from a regional Climate Pollution Reduction Grant award to the New England states.

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