Massachusetts Heat Pump Rebates

Through the Mass Save Air Source and Ground Source Heat Pump Rebates program, Massachusetts heat pump rebates reach up to $25,000. A standard household may claim as much as $8,500 for an air source system, or $13,500 for a ground source unit.

Find the Massachusetts rebates for your ZIP code

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Cold-climate heat pump outdoor unit on a wall bracket beside a clapboard house in light snow, the kind of install Massachusetts heat pump rebates help pay for
Top standard rebate available now
$10,000 SELCO Heat Pump Rebates (Tier I / Tier II), open to customers of Town of Shrewsbury
Geothermal (ground-source) system
$13,500 Mass Save Air Source and Ground Source Heat Pump Rebates
If your household income qualifies
$16,000 Mass Save Air Source and Ground Source Heat Pump Rebates
HEAR appliance rebates
Not yet open Run by DOER. Official page
HOMES whole-home rebates
Not open yet Paid on the energy saved by a whole-home upgrade. Official page
The 25C federal tax credit
Ended No credit for heat pumps installed after 31 December 2025

Rebates on heat pumps in Massachusetts

To see which rebate fits your home, match your gas or electric utility with your project type.

ProgramWho can get itCentral heat pumpDuctless mini-splitHeat pump water heaterGeothermalStatusApply
Mass Save logoMass Save Air Source and Ground Source Heat Pump RebatesOpen to customers of Massachusetts Electric Co, NSTAR Electric Company and others$2,650 per ton, capped at $8,500$2,650 per ton, capped at $8,500None$13,500 per homeOpenOfficial page
Mass Save logoMass Save Heat Pump Water Heater RebatesOpen to customers of Massachusetts Electric Co, NSTAR Electric Company and othersNoneNone$1,500 per systemNoneOpenOfficial page
SELCO Heat Pump Rebates (Tier I / Tier II)Served by Town of Shrewsbury$2,000/ton; the most you can get for the heat pump is $9,000, and a $1,000 decarbonization rebate is added$2,000/ton; the most you can get for the heat pump is $9,000, and a $1,000 decarbonization rebate is addedNone$750/ton Tier I; $3,000/ton Tier IIOpenOfficial page

Claiming Massachusetts Heat Pump Rebates Step by Step

The Mass Save heat pump rebates programme processes applications from customers of Liberty, Berkshire Gas, Cape Light Compact, Unitil, National Grid, and Eversource. Whole-home air source units that take the place of natural gas, oil, electric heat, or propane pay $2,650 per ton, with an $8,500 cap One ton measures cooling size and works out to 12,000 British thermal units Units serving part of the home earn $1,125 per ton, with an $8,500 cap, if an integrated control is included An integrated control is a switch, and it puts your heat pump first while your old boiler stands by as backup

  1. For a whole-home rebate on a home built before 2000, you must finish the required weatherization.
  2. Get an installer who is part of the Mass Save Heat Pump Installer Network, and choose your unit from the qualified products list
  3. After installation, file your rebate form and the signed verification form by mail or online.
  4. Paperwork for 2026 installs is due by February 28, 2027, and serial number photos are needed starting October 1, 2026.

What is available to lower-income households in Massachusetts?

Programs based on income pay most, or even all, of your equipment cost when your family earns below the state limits A household of four earning $103,049 or less gets no-cost weatherization and heating upgrades through Mass Save income-based offers. You also qualify for the Weatherization Assistance Program if you earn no more than 60 percent of the State Median Income.

Moderate-income families of four with earnings from $103,050 to $137,399 can claim Mass Save Enhanced Incentives For air source systems, this tier pays up to $16,000, or turnkey services cover the full cost Ground source units get up to $25,000, and electrical panel upgrades are covered up to 100 percent. To claim this tier, you must heat with oil, propane, or electric resistance now and complete the recommended weatherization.

When Do the Federal Home Energy Rebates Start?

No start date has been announced yet, and state officials are still working out how to roll out the federal rebate funds. Massachusetts federal funding updates show the state received $73,086,125 for whole-home rebates and $72,809,130 for appliance rebates. Appliance funds of $71.8 million will be routed directly into programs that already serve income-qualified households, the Mass Save FAQ explains. A standard Home Energy Assessment will be how low- and moderate-income households apply, not a separate federal form

The federal whole-home money will support affordable housing grants plus one-to-four unit homes that a municipal light plant serves A municipal light plant means a town-owned electric utility, and it runs outside the Mass Save network. For federal taxes, the Internal Revenue Service has stopped the 25C tax credit on installations after December 31, 2025

Municipal Utilities, Free Weatherization, and Zero-Percent Loans

Homeowners can begin with a no-cost Home Energy Assessment, which cuts 75 to 100 percent from approved insulation and air sealing costs If you buy a partial-home unit, you can add a $500 weatherization bonus plus another $500 for sizing it to heat the entire house. To cover the rest, the Mass Save HEAT Loan offers $500 to $25,000, charges zero percent interest, and runs for up to seven years The Seasonal Heat Pump Rate can also cut what you pay for electricity in winter, from November through April

In the 40 towns served by municipal electric utilities, residents apply through their local light department instead. Shrewsbury homeowners, for example, can claim up to $9,000 through SELCO heat pump rebates, plus a $1,000 decarbonization rebate. Customers of municipal utilities can also take out an interest-free MLP Z-Loan of $500 to $25,000, repaid over up to five years

Common Questions About Massachusetts Heat Pump Rebates

Do heat pump rebates remain available in Massachusetts?

Yes, rebates stay open while Massachusetts works on a target of 500,000 heat pump homes set for 2020 to 2030. For systems installed from January 1, 2027 onward, Mass Save will pay less. From then on, whole-home air source pays $2,350 per ton up to $7,500, partial-home $1,000 per ton, and ground source $12,000

Will heat pumps come with any tax credits in 2026?

No, the federal Section 25C tax credit does not cover any equipment placed in service past December 31, 2025 Under Public Law 119-21, Congress cut this residential energy credit short on July 4, 2025 Fact Sheet FS-2025-05, issued by the Internal Revenue Service on August 21, 2025, spells out the final cutoff rules

Which Mass Save heat pump rebates apply in 2026?

Mass Save also pays a basic rebate when a heat pump or central air conditioner gets replaced, on top of its whole-home and partial-home offers At this basic level, you get $250 per ton up to $2,500. You can also receive $1,500 for a split-system unit, or $750 for a heat pump water heater, when a licensed plumber does the work.

What does installing a whole-home heat pump in Massachusetts cost?

The 2022 Mass Save program put the average whole-home air source installation at $22,000 before rebates. Ground source heat pumps installed for whole homes average $44,000, based on program data. Mass Save advises you to collect two or three installer quotes from its network, and to book a no-cost online session with a Decarbonization Specialist.

Get Massachusetts installer quotes with the rebates taken off

Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.

You consent to up to three heat pump installers, or one firm that pairs homeowners with installers, in your ZIP code reaching you about this project by call, text or email at the number and address you entered when you send this request, and those calls and texts may be placed with automated dialing technology. Agreeing is not a condition of any purchase or rebate.