Rebates are based on whether the heat pump system will serve the whole-home or partial-home.
Whole-home rebates are available to customers who install heat pumps as the sole source of heating and cooling. See the Whole-Home Heat Pump Verification Form for details.
Partial-home rebates are offered based on equipment size (tonnage) to customers who install heat pumps in a section of their home.
Ground Source Heat Pump Rebates | ||
Rebate Type | Rebate Amount | Federal Tax Credit |
---|---|---|
Whole-Home | $15,000 per home | 30% purchase and installation of costs*** |
Partial-Home | $2,000 per ton*, up to $15,000 | |
Income-Based Enhanced Incentive (whole-home or partial-home)** | $25,000 per home |
* Tons are calculated based on AHRI cooling capacity divided by 12,000 BTUs. Rebate amount based on tons. ↩
** 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. ↩
*** 25D Residential Clean Energy Property Credit. Federal tax credit is applied to install cost after the Mass Save rebate is applied. The 25D Tax Credit is equal to 30% of the ground source heat pump install cost. 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. ↩
Cost Example
Below are cost examples of installing a whole-home ground source heat pump. The average installation cost is based on Mass Save program data for whole-home ground source heat pump installations completed in 2022.
Standard Incentive |
Income-Based Enhanced Incentive | |
---|---|---|
Average Installation Cost | $44,000 | $44,000 |
Mass Save Rebate (Whole-Home) | $15,000 | $25,000 |
Federal Tax Credit* | $8,700 | $5,700 |
Net Project Cost | $20,300 | $13,300 |
* 25D Residential Clean Energy Property Credit. Federal tax credit is applied to install cost after the Mass Save rebate is applied. The 25D Tax Credit also covers the cost of electrical panel upgrades if they are installed in conjunction with a ground source heat pump or other installation authorized under the Tax Credit. 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. ↩