Residents can also take advantage of federal tax credits to lower the price of purchasing and installing an air source heat pump. Greater discounts and no-cost options are also available to income-qualifying customers.
Rebates are based on whether the heat pump system will be serving the whole-home or partial-home.
Air Source Heat Pumps
- Whole-home rebates are available to customers who install heat pumps as the sole source of heating and cooling.
- Partial-home rebates are offered based on equipment size (tonnage) to customers who plan to keep an existing boiler or furnace in place to supplement a new heat pump system.
Air-Source Heat Pump rebates have changed as of January 1, 2025
- The whole-home heat pump rebate incentive is $3,000 per ton, capped at $10,000.
- Customers in 5+ unit homes are eligible to receive the whole-home rebate, provided all requirements noted on whole-home verification form can be met.
- All other whole-home heat pump requirements remain the same. There are no changes to the partial-home rebate, which will remain at $1,250 per ton.
- The above changes are effective for installations that take place on or after January 1, 2025.
1. Tons are calculated based on AHRI cooling capacity divided by 12,000 BTUs. Rebate amount based on tons.
2. To qualify for a Federal 25C Energy Efficient Home Improvement Credit, the installed heat pump system must meet the Consortium for Energy Efficiency’s (CEE) highest non-"advanced" tier. Also note that the 25C Tax Credit is equal to 30% of the heat pump install cost after the Mass Save rebate is applied up to a total of $2,000 annually. An annual credit up to $600 is also available under the 25C Tax Credit for 30% of the cost of electrical panel upgrades if they are installed in conjunction with a heat pump or heat pump water heater. For more information on available tax credits, please visit the Inflation Reduction Act FAQ. This information does not represent tax or legal advice. Please consult your tax advisor for further details.
3. Visit MassSave.com/Enhanced for additional information. Pre-existing fuel type must be oil, propane, or electric resistance.
The Sponsors of Mass Save offer 0% financing HEAT Loans to make energy efficiency upgrades more affordable to Massachusetts residents. Through this loan, you could qualify for a loan up to $25,000 toward qualified home improvements.
Air to Water Heat Pumps
Air to water heat pumps can provide a total solution for heating, cooling, and hot water supply in a home.
Air to water heat pumps use the same concept as an air source heat pump for drawing out heat from the outdoor air. The difference is it delivers the heat via water piped through a home (rather than hot air).
Residents can also take advantage of federal tax credits to lower the price of purchasing and installing an air to water heat pump. Greater discounts and no-cost options are also available to income-qualifying customers.
The Sponsors of Mass Save offer 0% financing HEAT Loans to make energy efficiency upgrades more affordable to Massachusetts residents. Through this loan, you could qualify for a loan up to $25,000 toward qualified home improvements.
| Equipment Type |
Efficiency Requirements |
Rebate Amount |
Enhanced Amount
(Income-Based)1 |
| Air to Water Heat Pumps |
Refer to the MassSave.com/HPQPL |
$3,000 per ton up to $10,000 |
$16,000 per home |
1. The Sponsors of Mass Save offer enhanced incentives for income-qualified households. Pre-existing fuel type must be oil, propane, or electric resistance. Cape Light Compact enhanced heat pump rebates differ from the amount listed. Customers are eligible for 80% of the installed cost of qualifying heat pump systems.
