Heating Systems in Maine

[Dan Weber]

Hi All,

I thank everyone in advance for their feedback. I own a three family in Portland, Maine. Just as a forward, I have read through the other forums on this topic (specific to Maine) and would still appreciate some input. I am looking to replace my heating system as it is very old and could die at any time. It is an oil furnace with forced hot water baseboard throughout. There is currently one system that heats the entire house as well as the hot water.

As most of you know, many landlords in Maine include heat in the rent and charge more for rent. I have asked around and many landlords would rather charge more for rent to pay for the heat than endure the cost to split the system and push the cost on the tenant. Although I can see where others are coming from, I NEED to replace my heat system and I see it as a good opportunity to split the system.

Firstly, do the BP landlords in Maine that push the cost of heat onto the tenants have a tougher time finding tenants?

Secondly, have any of the BP landlords gone solely with the heat pumps? I would like to know how they have performed. 

Has anyone used any other heat systems that they have found to be successful in Maine?

Thanks everyone for the input!

[Dave Holman]

@Dan Weber I've killed probably 5 oil burning systems in my Maine multi-unit buildings and replaced them with heat pumps. Losing track! It's a no brainer. It provides a terrific ROI in the 25-50%/yr range when you decommission an old fossil fuel system and switch to heat pumps (with tenants paying electric). You can then out-compete other landlords on nominal rent price and tenants love having AC and a modern programmable system, all while you get a higher NOI (profit).

A few things to keep in mind:

*Maine now has 2 different levels of rebate, the better rebate is for smaller (more efficient) heat pumps.

*Installers almost always want to over-size things. They're afraid people will get cold and think you need gigantic 24-30K+ BTU systems. Generally, you don't. Each unit needs one small efficient heat pump in a common area (kitchen, living room etc) and then your electrician can install super-cheap 4 foot electric baseboard units in rooms with closeable doors (like bedrooms).

*Beware of installers that offer what seems like cheap financing- in fact they often jack up the price to more than offset the cheap financing. My experience is that pure-play heat pump companies do better work for a lower price while bigger heating/renewable companies overcharge and aren't as specialized. Highly recommend Royal River Heat Pumps.

*Add a 50 gallon heat pump water heater for water. These have a $750 rebate and they only cost about $1200! Add another $500 for plumbing/electric on average. You can do one for each unit or one 50 or 80 gallon for a small 1-3 unit building.

*It's delightful to think about the thousands of gallons of oil you'll be saving while also savings thousands of dollars each winter.

Hope this helps!