Delivered Fuel Customers in Maryland See Strong Energy Bill Savings in a Switch to Heat Pumps

RMI analyzed the annual energy bill impacts of replacing delivered fuel space heating systems with heat pumps across Maryland’s electric utility service territories. This focused on the approximately 330,000 Maryland single-family households that use delivered fuels to heat their homes (14% fuel oil and 4% propane across all Maryland single-family homes).

Why heat pumps?

Replacing a delivered-fuel (propane or fuel oil) space heating system with a heat pump provides residents with cheaper energy and more predictable energy costs. Heat pumps also provide additional safety and health benefits by avoiding combustion within the home.

Additionally, heat pumps provide both heating and cooling in one system. For households with outdated and aging heating and air-conditioning equipment, a heat pump can replace both systems with efficient technology that provides year-round comfort.  

Analysis findings

• Delivered fuel customers in Maryland could experience significant savings on their energy bills: Across all electric utility territories, delivered fuel customers save between approximately $1,200 and $1,600 on average annually across electric providers in a switch to a heat pump space heating system.
• Savings could be especially significant on the state’s Eastern Shore and Western Maryland: Savings are especially pronounced for those on the Eastern Shore (including Cecil, Caroline, Dorchester, and Queen Anne’s counties), which are serviced by Choptank Electric Cooperative and Delmarva Power, as well as those in Western Maryland serviced by Potomac Edison.

Delivered fuels households in Maryland represent a strong opportunity for the state to improve energy affordability while accelerating access to highly efficient space heating systems. Maryland can unlock this opportunity through:

• Targeting incentives to delivered fuel households (including through the state’s energy efficiency program, EmPOWER)
• Integrating heat pumps in housing upgrade programs
• Providing workforce education and outreach
• Studying and implementing electrification-friendly rates

Together, these policy levers put Maryland on track to lower energy costs while advancing energy affordability goals.