Heat Pump Rebates and Incentives for Massachusetts Residents

Now is the perfect time for Massachusetts homeowners to install a heat pump and benefit from the rebates and tax credits that come along with making your home more energy efficient. This blog post will walk you through the available Mass Save™ rebate options and federal tax credits available that can help lower your overall costs. Additionally, we’ll provide tips to ensure you maximize your savings with the Mass Save rebate program.  

1. Mass Save Rebates

Mass Save offers rebates to customers of participating utility sponsors — including Berkshire Gas, Cape Light Compact, Eversource, Liberty, National Grid, and Unitil — for installing qualified heat pumps in their homes. These rebates encourage homeowners to transition to more energy-efficient systems, reducing energy consumption and emissions. However, homes with municipal electric utilities or delivered fuel are not eligible for Mass Save rebates. Currently, eligible customers could qualify for the following:

• Whole-Home Heat Pump Rebate: Homeowners who use a Mass Save approved installer to set up an eligible heat pump as their primary heating and cooling system can receive rebates of up to $10,000. This option requires sufficient weatherization of the home as well as the disconnection of a homeowner’s existing heating system.
• Partial-Home Heat Pump Rebate: If an eligible heat pump supplements an existing heating system, like a furnace, homeowners using a Mass Save approved installer can qualify for rebates based on the system’s size—typically $3,000 per ton, up to $10,000.
• Income-Qualified Rebates: Moderate and low-income households using a Mass Save approved installer for eligible heat pump installations can receive enhanced rebates—up to $16,000 for whole-home systems and $8,000 for partial systems, depending on eligibility.

2. Mass Save HEAT Loan

The Mass Save HEAT Loan is a 0% interest financing option that helps many Massachusetts customers of participating sponsors afford energy-efficient home improvements, such as heat pump installations.

• Loan Amount and Term:
  • Homeowners can borrow up to $25,000 for an eligible heat pump installation.
  • Mass Save HEAT Loan repayment terms are based on annual household income.some text
    • 7-year loan at 0% interest rate for 81-135% of State Median Income (SMI)
    • 5-year loan at 0% interest rate for 135-300% of SMI
    • 3-year loan at 0% interest rate for 300%+ of SMI

• Eligibility Requirements:
  • The HEAT Loan is available to qualified customers participating in the Mass Save Program. 
  • Homeowners must complete a Home Energy Assessment through Mass Save.
  • All equipment must be installed by a Mass Save approved installer.

• Application Process:
  • After the Home Energy Assessment homeowners receive approval to apply for the loan through participating lenders.
  • The loan covers both the equipment and installation costs.
  • Homeowners can opt to pay their contractor directly or have the contractor collect the rebate on their behalf​. 

3. Federal Tax Credits

On top of the Mass Save rebates, homeowners can take advantage of the Federal Energy Efficient Home Improvement Tax Credit. Homeowners can receive up to $2,000 in tax credits for installing a heat pump, further reducing your overall costs.

4. Local Utility Rebates

Some utility companies in Massachusetts offer additional rebates to supplement the Mass Save incentives. Companies offering these rebates include:

• Wellesley Municipal Light Plant:​​ Offers up to $10,000 rebates for customers who get a heat pump installed as their primary heating and cooling system. Customers who choose to retain their existing system (for backup heat or hot water) are eligible for up to a $8,000 rebate. Additionally, they offer 50% off weatherization costs if completed within six months of installing a whole-home heat pump.

• Hull Municipal Light Plant: Offers rebates starting at $500 per ton for customers who get a heat pump installed. 

• Shrewsbury Electric and Cable Operations: Offers rebates start at $2,000 per ton for customers who get a heat pump installed, with a maximum rebate of $10,000 per address.

It’s worth checking with your energy provider to see if there are any exclusive offers or stackable rebates available for your heat pump installation.

Ensuring You Get the Most Out of The Mass Save Rebates

Navigating Mass Save rebates can be overwhelming, but a reliable, knowledgeable heat pump installer can make the process seamless. Here’s how to ensure you are getting the most out of the Mass Save rebates:

• Choose a Certified Installer: Ensure your installer is part of the Mass Save Heat Pump Installer Network to qualify for rebates. Currently, homeowners who use an installer outside of this network are not eligible for Mass Save rebates.

• Schedule a Home Energy Assessment: Most rebates require an energy assessment offered by Mass Save. During this assessment an energy specialist makes a visit to your home, assesses its current energy use, installs no-cost instant energy savings products, and provides a customized list of recommendations to save you energy and money. Homeowners can schedule an energy assessment by visiting the Mass Save website. 

• Use Qualified Products: Confirm that the heat pump models being installed are listed on the Mass Save Heat Pump Qualified Product list. Heat pumps not listed as a qualified product are not eligible for Mass Save rebates and federal tax credits.

• Complete All Necessary Paperwork: Work with your heat pump installer to accurately fill out and submit rebate forms on time.

• Follow Up with Your Installer: Check that all documentation is submitted and ensure there are no delays in receiving your rebate.

Get Started with Your Heat Pump Installation Today

Heat pumps are a smart investment in comfort, efficiency, and sustainability, and with available rebates, they’re more affordable than ever. Your heat pump installer should assist you throughout the process — handling installation, explaining your options, and helping you maximize available rebates.

At Forge, our team of experts do one thing, and one thing only: design and install incredibly efficient and effective heat pumps in Massachusetts homes. Don’t wait — take advantage of these rebates now and enjoy energy savings for years to come! Contact Forge today for a free consultation and begin enjoying the benefits of a heat pump.