2024 Discontinuation of Rebates and Incentives for Natural Gas, Oil, and Propane Heating Equipment

In alignment with the Massachusetts state climate policy and goals, including a mandate passed into law by the 2021 Climate Act, the Sponsors of Mass Save® will be discontinuing rebates, incentives, and financing for equipment powered by natural gas, oil or propane in 2024. Eligible residential natural gas, oil and propane space and water heating equipment must be purchased and installed by August 31, 2024, and all necessary documentation submitted by September 30, 2024, to receive a rebate. Customers interested in applying for the 0% HEAT Loan for eligible natural gas, oil or propane equipment must request a HEAT Loan Authorization Letter by April 30, 2024. An exception to this requirement is for low-income households. Incentives remain available for qualifying low-income customers upgrading existing fossil fuel equipment to high efficiency models. Commercial customers must purchase, install, and submit for the rebates for natural gas fired space heating equipment by September 30, 2024. The instant incentive for natural gas commercial water heating equipment and food service equipment is available if equipment is purchased by September 30, 2024.

The discontinuation of these rebates and incentives was mandated as a result of the 2021 Climate Act, which stipulates that after December 31, 2024, the Sponsors of Mass Save will only be allowed to pay rebates and incentives to customers for efficient equipment that utilizes fossil fuels (oil, propane, natural gas) under very specific circumstances laid out in the 2021 Climate Law, including for low-income households.

To comply with this new law, the Sponsors began communication with our business partners in 2023 that we would stop accepting rebate applications for this equipment by September 30, 2024 (as mentioned above, residential systems must be installed by August 31, 2024). Any customer submitting a complete and accurate application for a qualifying piece of equipment before this deadline will receive their rebate payment.

The restrictions on providing direct rebates and incentives also apply to the interest rate buy-downs we provide in order to allow residential customers to access 0% financing for qualifying energy efficient equipment. The following table includes some additional deadlines for customers who have initiated a HEAT loan application process.

These changes also apply to our residential and commercial new construction programs, which, starting in 2024, have shifted to serving all-electric new construction only (with limited exceptions). These changes have been announced over the last several months. Customers with in-progress projects utilizing new fossil fuel equipment must be complete with final verification documents provided to Mass Save Sponsors by September 30, 2024 in order to guarantee access to the full incentive amount.

While these changes are being implemented as a legislative requirement, they also reflect the Mass Save programs’ focus on transforming the market in Massachusetts and supporting customer adoption of high efficiency heat pumps for heating and cooling needs, including heat pump water heaters.

Our efforts to increase customer education and support for heat pump adoption have been extraordinarily successful. Since 2022, we have enrolled over 1,600 HVAC contractors in our Heat Pump Installer Network, and, in 2023, supported installations of heat pumps in over 28,000 homes in Massachusetts. We look forward to continued collaboration with stakeholders, legislators, business partners, and our customers across the commonwealth as we work towards a clean energy future – together.