Updated Jan 2026

Massachusetts Heat Pump Rebates

Get up to $16,000 in rebates for heat pump installations through Mass Save. Air source, ground source, and mini-split systems all qualify.

Quick Summary

Standard Rebate $8,500
Income-Qualified Up to $16,000
Ground Source Up to $25,000
+ Federal Tax Credit Ended Dec 2025

What is a Heat Pump?

A heat pump is an all-in-one heating and cooling system that moves heat rather than generating it. In winter, it extracts heat from outdoor air (even when cold) and moves it inside. In summer, it works like an air conditioner, removing heat from your home.

Air Source Heat Pump (Ducted)

Uses existing ductwork to heat and cool your entire home. Best for homes with existing forced-air systems.

Rebate: $2,650 per ton, up to $8,500
Min. Efficiency: SEER2 15.2+ / HSPF2 7.8+

Ductless Mini-Split

Individual units mounted on walls, no ductwork required. Ideal for room-by-room control or homes without ducts.

Rebate: $1,125 per ton, up to $8,500
Min. Efficiency: SEER2 15.2+ / HSPF2 7.8+

Ground Source (Geothermal)

Uses underground loops for exceptional efficiency. Higher upfront cost but lowest operating costs.

Rebate: $13,500
Min. Efficiency: EER 16.1+ / COP 3.1+

2026 Heat Pump Rebate Amounts

Current rebate amounts for Mass Save participating utilities. Income-qualified households receive enhanced rebates.

Tier Equipment Rebate Amount
Standard Whole-Home Air Source Heat Pump $8,500 max — $2,650 per ton
Standard Partial-Home Air Source Heat Pump $8,500 max — $1,125 per ton
Standard Basic Air Source Heat Pump $2,500 max — $250 per ton
Standard Ground Source Heat Pump $13,500 per home
Income Qualified Whole-Home Air Source Heat Pump $16,000 max per system
Income Qualified Ground Source Heat Pump $25,000 max per system

Income-Qualified? You May Get More

Households earning below 60% or 80% of State Median Income qualify for enhanced rebates. Some may receive 100% of project costs covered.

Check income eligibility

Eligibility Requirements

Eligibility Requirements

  • Must be a customer of a Mass Save participating utility (Eversource, National Grid, Cape Light Compact, Unitil, or Berkshire Gas)
  • Home must be located in Massachusetts
  • Equipment must meet minimum efficiency requirements (SEER2 15.2+, HSPF2 7.8+)
  • Installation must be performed by a Mass Save registered contractor
  • Pre-verification is optional for residential projects; documentation is due by February 28, 2027

Participating Utilities

Eversource
National Grid
Cape Light Compact
Unitil
Berkshire Gas
Liberty Utilities

Municipal utility customers may have different programs. Check municipal utility rebates

How to Apply for Rebates

How to Apply

  1. 1

    Schedule a free Home Energy Assessment through Mass Save

  2. 2

    Get quotes from 2-3 Mass Save registered heat pump contractors

  3. 3

    Submit rebate application through the Mass Save portal before installation

  4. 4

    Optionally pre-verify your project with Mass Save before installing

  5. 5

    Complete installation with your chosen contractor

  6. 6

    Submit final documentation including invoices and equipment specs

  7. 7

    Receive rebate check within 6-8 weeks

Ready to Get Started?

1

Schedule Home Energy Assessment

Free, no obligation

2

Get contractor recommendations

Mass Save approved installers

Schedule Free Assessment

You'll be redirected to MassSave.com

The Federal Credit No Longer Stacks

The federal 25C tax credit that used to stack on top of Mass Save rebates was repealed effective December 31, 2025 and does not apply to work done in 2026. Mass Save is now the incentive that matters in Massachusetts. The New England Heat Pump Accelerator now takes $650 off each outdoor unit at the point of sale.

Example: $15,000 Heat Pump Installation in 2026

Installation Cost $15,000
Mass Save Rebate (whole-home, at the $8,500 cap) -$8,500
Federal 25C Tax Credit $0 — ended Dec 31, 2025
Your Final Cost $6,500

Mass Save pays $2,650 per ton, up to $8,500 — this example assumes a system large enough to reach the cap. Income-qualified households can receive up to $16,000. The federal 25C credit was repealed effective December 31, 2025; through 2025 this same project came to $3,500.

Frequently Asked Questions

Do heat pumps work in Massachusetts winters?

Yes! Modern cold-climate heat pumps are designed to work efficiently in temperatures well below freezing. Many models operate down to -15°F or lower. Mass Save only provides rebates for heat pumps that meet cold-climate efficiency standards.

Can I keep my existing heating system as backup?

Yes, you can install a heat pump alongside your existing furnace or boiler. This "hybrid" approach lets the heat pump handle most heating needs while the backup system kicks in during extreme cold. You'll still qualify for rebates.

How long does installation take?

A typical ducted heat pump installation takes 1-2 days. Ductless mini-splits can often be installed in a single day. Ground source systems take longer (1-2 weeks) due to the underground loop installation.

How long does it take to receive my rebate?

After submitting your final documentation, rebate checks typically arrive within 6-8 weeks. Some contractors offer instant rebates where the discount is applied directly to your invoice.

Get the Free Rebate Toolkit

2026 stacking rules, a claiming checklist, and a reference for the credits that ended - all in one PDF.