Winter in Salem can swing from brisk afternoons to single digits overnight. If you are buying a home or planning an upgrade, your heating choice affects comfort, monthly costs, and resale value. In this guide, you’ll compare gas, oil, and heat pumps with local context, incentives, and due diligence tips for Rockingham County. Let’s dive in.
Salem’s heating landscape
New Hampshire remains petroleum heavy for home heat, with roughly two fifths of homes using fuel oil and about three fifths relying on oil or propane overall. State data from EIA highlights this long-standing mix.
Natural gas service is available in parts of Salem through regional utilities. Coverage is not universal and depends on existing mains and projects. Unitil has operated in town, so availability varies by street. Always verify service at your specific address with the utility. Recent Unitil notices in Salem confirm active local operations.
Delivered fuel prices drive operating cost decisions. In 2025, New Hampshire heating oil averaged in the mid 3 dollar per gallon range, with seasonal spikes. See current series for NH heating oil prices and New England propane updates.
Gas vs. oil vs. heat pump
Heating oil
- Pros: Familiar to local trades, high heat output, independence from gas mains.
- Cons: Price volatility, on-site tank responsibilities and liability, regular maintenance. Oil has higher CO2 per unit of heat than natural gas and typically more than efficient electric heat. EIA and federal data outline fuel emission factors.
Propane
- Pros: Works where gas mains are not available, versatile for appliances.
- Cons: Often higher cost per unit of heat than natural gas, requires tank and deliveries, price swings. EIA’s NH profile details statewide reliance.
Natural gas
- Pros: Continuous supply, typically lower emissions per MMBtu than oil or propane, often competitive operating costs.
- Cons: Not on every street in Salem, connection costs if mains are absent, emissions still occur. See federal emissions factors.
Heat pumps
- Pros: High efficiency, provide heating and cooling, and shift usage to electricity as the grid gets cleaner. Modern cold-climate models are designed to perform in low temperatures. NEEP’s regional guidance explains capabilities.
- Cons: Upfront cost, potential electrical upgrades, and in some homes a hybrid setup is wise for extreme cold. Look for the ENERGY STAR cold-climate designation.
What it costs to install
Installed costs vary with home size, ductwork, electrical capacity, and complexity.
- Ductless mini split heat pump: single zone often 2,000 to 6,000 dollars installed. Multi-zone systems can reach 8,000 to 15,000 dollars or more. See national ranges.
- Ducted air-source heat pump: commonly 6,000 to 15,000 dollars depending on scope.
- Oil boiler or furnace replacement: many projects land around 4,000 to 9,000 dollars for equipment plus install, with hydronic complexity raising costs. Typical boiler ranges.
New England labor and permitting can push costs higher. Ask for a Manual J heat load and multiple quotes. Consumer guides can help you prepare questions for contractors.
What it costs to run
Your bills depend on fuel price, system efficiency, and how cold it gets. Oil and propane track market swings and often rise in winter. Check current NH heating oil prices and regional propane updates before comparing.
Heat pumps move heat rather than make it, so efficiency is measured by seasonal performance. High quality cold-climate models often deliver lower and steadier seasonal costs than oil or propane, depending on local electricity rates and the home’s load. Emissions also vary by fuel. Natural gas emits less CO2 per unit of heat than oil or propane, and heat pumps’ emissions fall as efficiency improves and the grid gets cleaner. See federal emissions factors.
Cold-climate performance in Salem
Modern cold-climate air-source heat pumps are built to retain useful capacity in low temperatures. Many models maintain significant output near 5 degrees Fahrenheit and below. Check for the ENERGY STAR cold-climate criteria and consult regional lists. For distribution systems like radiators, consider a hybrid setup or a design that suits hydronic temperatures. See technical notes on performance limits and distribution choices from independent resources.
Incentives and assistance
Lower your net costs with local and federal programs.
- NHSaves rebates: Participating electric customers of Liberty, Unitil, Eversource, or NHEC can qualify for heat pump incentives and related offers like thermostat rebates. Funding and rules change, so review current NHSaves program details.
- Federal tax credits: Qualifying heat pumps may be eligible for the Energy Efficient Home Improvement Credit, generally 30 percent up to a cap such as 2,000 dollars for certain equipment. Check current IRS guidance and product requirements.
- Oil tank programs: New Hampshire programs can help with tank upgrades, removals, and certain cleanup costs. Learn about Safetank and reimbursement funds in this overview for homeowners.
- Bill help and weatherization: LIHEAP and Weatherization Assistance can reduce winter costs for eligible households. See local contacts and program info via this community resource page.
Program rules change year to year. Confirm current eligibility with program sites and your installer or tax professional before you commit.
Buyer and seller checklists
If you are buying in Salem
- Verify energy service at the address. Ask whether a gas main is on the street and which utility serves the property. Recent Unitil activity in Salem is a reminder to check address by address.
- Request 12 months of fuel bills to estimate operating costs. Compare against a heat pump scenario using current local fuel prices like NH heating oil series.
- If an oil or propane tank is present, ask for tank age, location, and any removal or closure paperwork. Review guidance on tank liability and assistance programs here.
- Ask for service records and permits for any replaced equipment.
If you are selling
- Gather documentation for any oil tank removal, closure, or inspection. Lenders and insurers often require clean paperwork.
- If you plan a pre-listing upgrade, get a Manual J, at least two licensed HVAC quotes, and note any rebates or credits you will pass along. A resource on planning is available here.
- Clarify how your system heats the whole house. If you have a heat pump with backup, include a brief explanation of when backup engages.
Which option fits your home
- Near a gas main and want simplicity: Natural gas can offer steady supply and lower emissions per unit of heat than oil. Confirm availability first.
- Older hydronic home or desire for redundancy: A hybrid solution that pairs a cold-climate heat pump with an existing boiler can balance comfort and cost.
- Want efficient heating plus summer cooling: A cold-climate heat pump delivers both, and rebates can lower upfront cost.
- Concerned about deliveries or tank liability: Gas or a heat pump reduces delivery logistics. Oil remains workable but requires active tank management.
Ready to weigh options for your Salem home or a property you are considering? Let’s talk about how heating choices affect comfort, budget, and resale. Connect with Shannon Dipietro for local guidance tailored to your address and plans.
FAQs
What heating fuels are most common in New Hampshire homes?
- New Hampshire remains petroleum heavy for home heat, with fuel oil and propane serving a large share of households, according to the EIA state profile.
Is natural gas available on my specific street in Salem?
- Coverage varies by street and utility main; confirm serviceability with the utility, and note that Unitil has active operations in Salem.
Do cold-climate heat pumps work in New Hampshire winters?
- Yes, modern models are designed to maintain useful capacity at low temperatures and are listed under ENERGY STAR cold-climate guidance and NEEP resources.
What rebates can I get for a heat pump in Salem?
- Check current NHSaves heat pump incentives and the IRS Energy Efficient Home Improvement Credit for federal tax credits.
How do buried oil tanks affect a New Hampshire home sale?
- Buyers and lenders often require documentation of removal or closure; see homeowner guidance and assistance programs in this tank overview.
Where can I check current oil and propane prices in New Hampshire?
- Review the NH heating oil price series and the EIA weekly propane update for regional trends.
