FrugalWatt / Heat pump vs. oil
Massachusetts & the Northeast · use your own bills
Heat pump or heating oil?
Compare the cost of heating the same home with oil and a heat pump. See when electricity saves money, when oil costs less, and what keeping oil as backup changes.
The starting numbers are an example, not current local prices. Replace them with your bills and an installer’s seasonal performance estimate. Your entries stay in this browser.
Where the running costs tie
- Seasonal COP
- Electricity price
- Oil price
Each threshold holds your other inputs fixed. Heat-pump heat costs less above the COP threshold, below the electricity threshold, or above the oil-price threshold.
Try a different winter
Annual savings at three seasonal COP scenarios, holding prices and heat-pump share fixed. These are scenarios, not weather forecasts.
| Seasonal COP | Annual savings |
|---|
How the comparison works
We estimate useful annual heat as gallons × 138,500 Btu × oil efficiency. Heat-pump electricity is that heat × the heat-pump share ÷ 3,412 ÷ seasonal COP. Any remaining heat stays on oil. We compare annual fuel costs for the same amount of useful heat.
Worked example: 700 gallons at $4 costs $2,800 a year. At 85% oil efficiency, a heat pump providing all that heat at seasonal COP 2.6 uses about 9,289 kWh. At $0.30/kWh, it costs about $2,787: roughly $13 less per year. Small changes in rates or performance can reverse that result.
What matters in Massachusetts and the Northeast
Use a full year of oil consumption for your own home; it captures the weather and thermostat settings you actually experienced. A colder future winter, changed insulation or a different comfort setting can change demand. Ask an installer for a load calculation, cold-weather capacity and a seasonal performance estimate for your location.
A heat pump can be efficient without being cheaper at your electricity rate. If your utility offers a seasonal heat-pump rate, enter the variable rate you expect to pay for heating electricity. Confirm enrollment and effective dates with the utility. Compare the break-even prices above with your own bills. If you keep oil for the coldest periods, lower the heat-pump share and use a COP for the periods when it runs.
Rebates and installation costs
Check the Massachusetts heat-pump rebate guide and the federal program status board before assuming a rebate. Programs can restrict fuel switching, equipment, income and application timing. The optional payback is net project cost divided by annual fuel savings; it excludes financing, maintenance, future price changes, cooling savings and equipment replacement cycles.
Questions before you switch
Does this size a heat pump?
No. Annual fuel use estimates seasonal energy, not the capacity needed on the coldest day. Sizing requires a building heat-loss calculation and equipment capacity data.
What is left out of the running costs?
Cooling, hot water, maintenance, oil-burner auxiliary electricity and fixed utility charges are excluded. Distribution losses are not separately modeled; choose effective seasonal efficiency and COP values that reflect your system. The model does not simulate hourly temperatures or decide when backup should switch on.
What if the heat pump costs more to run?
The result shows the extra annual cost and does not invent a payback. You can still weigh cooling, comfort or replacing aging equipment separately. Compare other home energy upgrades if you want a broader starting point.
Method sources reviewed September 9, 2026 (AI-assisted): EIA energy conversion factors; DOE heat-pump systems. Conversion factors are approximate. The example prices, efficiency and COP are editable assumptions.