Air Source Heat Pumps
Install a high-efficiency heat pump—and get up to $16,000 back.
Air source heat pumps are a smarter, more efficient option to keep your home comfortable all year long.
Air source heat pumps extract heat from the air outside and distribute it inside your home. During warmer months, this process is reversed to provide cooling.
There are both ducted and ductless heat pumps (commonly referred to as mini-splits), making them suited to homes with or without existing ductwork.
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.
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 plan to keep an existing boiler or furnace in place to supplement a new heat pump system.
Air-Source Heat Pump rebates are changing on January 1, 2025:
- The whole-home heat pump rebate incentive will be $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.
| Air Source Heat Pump Rebates | |||
| Rebate Type | Rebate Amount (Current) |
Rebate Amount (2025) |
Federal Tax Credit |
|---|---|---|---|
| Whole-Home | $10,000 per home | $3,000 per ton up to $10,000 | Up to $2,000** |
| Partial-Home | $1,250 per ton* up to $10,000 | $1,250 per ton* up to $10,000 | |
| Income-Based Enhanced Incentive (whole-home or partial-home)*** | Up to $16,000 | Up to $16,000 | |
* Tons are calculated based on AHRI cooling capacity divided by 12,000 BTUs. Rebate amount based on tons. ↩
** 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. ↩
*** Visit MassSave.com/Enhanced for additional information. 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. ↩
Cost Example
Below are cost examples of installing a whole-home heat pump.
| Standard Incentive |
Income-Based Enhanced Incentive | |
|---|---|---|
| Average Installation Cost*** | $22,000 | $22,000 |
| Mass Save Rebate (Whole-Home) | $10,000 | $16,000 |
| Federal Tax Credit** | $2,000 | $1,800 |
| Net Project Cost | $10,000 | $4,200 |
***The average installation cost is based on Mass Save program data for whole-home air source heat pump installations completed in 2022. ↩
- Confirm Eligibility
View the Eligibility Tab to confirm the eligible requirements. The Sponsors of Mass Save offer enhanced incentives to income-qualified households.
If you are a Cape Light residential customer, please call 1-800-797-6699. - Ensure Your Home Has Sufficient Weatherization
View the Eligibility Tab for additional details. This is a requirement for whole-home rebates and may qualify customers pursuing partial-home rebates for a $500 bonus. - Find a Qualifying Contractor
To qualify, the heat pump system must be installed by a contractor participating in the Mass Save Heat Pump Installer Network. The contractor can help you determine what solution is best suited for your home. As a helpful resource, please reference our Questions to Ask your Installer. - Purchase & Install Eligible Equipment
Work with your contractor to purchase and install an eligible heat pump system.
If pursuing a partial-home heat pump, an integrated control from the Mass Save Integrated Control Qualified Product List must be installed for heating zones where propane, oil, or natural gas will remain in use. Use our Integrated Control Switchover Temperature Calculator to learn more and determine the most cost-effective temperature setting based on current fuel prices.
If installing a whole-home heat pump, you must also satisfy all requirements listed on the Whole-Home Heat Pump Verification Form. - Submit Rebate Form with Required Documentation
Apply Online
Or
Print & Mail Rebate Form - Reference our Air Source Heat Pump User Tips
Get the most out of your heat pump by referencing our Air Source Heat Pump User tips.
- Offers valid only for residential customers replacing oil, propane, or electric resistance heating systems where Cape Light Compact, Eversource, National Grid, or Unitil is the Mass Save Electric Sponsor
- Offers valid only for residential customers replacing natural gas heating systems where Berkshire Gas, Eversource, Liberty Utilities, National Grid, or Unitil is the Mass Save Natural Gas Sponsor1
- Equipment must be installed between January 1, 2024 and December 31, 2024 by a contractor participating in the Mass Save Heat Pump Installer Network
- Equipment must be ENERGY STAR® Cold Climate certified. Refer to the Mass Save Heat Pump Qualified Products List for a complete list of eligible units
- Equipment must be new and installed to displace oil, propane, natural gas, or electric baseboard (resistance) as the primary heating system.
- Partial-Home Rebates: An integrated control from the Mass Save Integrated Control Qualified Product List must be installed for heating zones where propane, oil, or natural gas will remain in use.
- Whole-Home Rebates: Homes must be sufficiently weatherized prior to heat pump installation2 and a Whole-Home Heat Pump Verification Form must be completed and signed.
- Rebate form and supporting documentation must be received by February 28, 2025.
Please note, this rebate is only available to residences that are occupied full time during the winter heating season. Equipment must be installed in individually metered 1-4 unit buildings or townhouses to receive the whole-home rebate. Rebate cannot be combined with other Mass Save incentives for the same equipment. Rebate amount not to exceed total installation cost. Sponsor reserves the right to conduct a verification inspection prior to rebate payment. Please allow eight weeks for rebate processing. Sponsor does not warrant the performance of installed equipment. See Terms and Conditions for full requirements.
- Customers in municipal electric territories are eligible for heat pump rebates if they are a natural gas heating customer of one of the Sponsors of Mass Save. Customers with municipal gas heating are not eligible for heat pump rebates.
- Sufficient weatherization can be demonstrated by satisfying at least one of the following requirements: (A) home was built during or after 2000, (B) Home Energy Assessment report indicates less than $1,000 worth of weatherization recommended, or (C) weatherization recommendations made during or after 2013 have been completed. Heat pumps installed for whole-home heating and cooling that do not meet the weatherization requirement may be eligible for partial-home rebate amounts.
If you have any questions, please call 1-888-855-0340 or email [email protected].
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 $50,000 toward qualified home improvements.
Not Sure Where to Start?
Schedule a no-cost, virtual consultation with a Mass Save Decarbonization Specialist for guidance. You can also use our Heating Comparison Calculator to compare the annual costs and savings of different systems.
Case Study: As Good as New
Instead of moving, Vance participated in a no-cost energy assessment to find ways to make his home more comfortable. By making insulation upgrades, installing two high-efficiency mini-split heat pumps, and advanced power strips, he saved $632 annually in energy costs.
Case Study: Dick MacDonough
After an existing central air conditioner unit broke down, Dick decided to upgrade to a high-efficiency heat pump and use a smart thermostat—reducing his annual carbon dioxide emissions by 5.1 metric tons.