Versant Power has challenged Efficiency Maine Trust’s new approach to promoting heat pumps in Maine. Efficiency Maine has shifted its rebate program to incentivize whole-house heat pumps rather than single-room or two-room systems, with the intent of making electricity the primary home heat source and discouraging the secondary use of oil or gas.
Michael Stoddard, executive director of Efficiency Maine Trust, explained that the change was prompted by several factors, including the availability of a federal tax credit of up to $2,000 for single heat pump installations, which is significantly higher than the previous state incentives of $400 to $800. Additionally, an analysis showed that heat pumps operate less frequently when a boiler is also running, leading to reduced cost savings for customers.
Versant Power, which serves 165,000 customers in northern and central Maine, opposes the shift to whole-house heat pumps, arguing that it would disproportionately benefit wealthier households who can afford the more extensive retrofits required. The utility also expressed concern that landlords would be reluctant to install whole-home heat pumps due to limited incentives to reduce tenant energy costs.
Eben Perkins, chief strategy officer at Competitive Energy Services, a Portland energy consulting firm, supports Efficiency Maine’s transition to whole-home heat pump systems, emphasizing their effectiveness in providing reliable heating during Maine’s cold winters and their importance in meeting the state’s emissions reduction goals. Governor Janet Mills announced in September that Maine had surpassed its goal of installing 100,000 heat pumps by 2025, two years ahead of schedule, and set a new target of 175,000 additional heat pumps by 2027.
Stoddard emphasized that Efficiency Maine’s shift to a whole-home standard is driven by the need to reduce carbon emissions and transition towards holistic heating systems. Maine continues to lead the national push for increased heat pump adoption, highlighting their role in reducing greenhouse gas emissions and promoting energy efficiency.