Researched for 6m 12s, 58 sources
Heat pump or oil: the next five years
After Mass Save's $10,000 rebate1, a cold-climate heat pump costs about what oil does over five years, and less every year after. Your oil bill last winter, $3,450, falls to about $1,980 in electricity2.
| Option | Install | A year | Five years |
|---|---|---|---|
| Oil furnace, as now | $0 | $3,450 | $17,250 |
| Cold-climate heat pump | $18,600 | $1,980 | $28,500 |
| After the rebate | $8,600 | $1,980 | $18,500 |
What to ask an installer
Ask for a Manual J load calculation, not a rule of thumb, and whether the quote keeps the furnace as a backup below 0°F3.
- masssave.com, Heat pump rebates, 2026
- eia.gov, New England residential electricity prices
- energystar.gov, Cold climate heat pumps