Heat Pump Water Heater Rebates
Get up to $1,250 in Mass Save rebates plus a 30% federal tax credit for upgrading to an efficient heat pump water heater.
View Rebate AmountsAnnual Savings
Based on MA average electricity rates. Actual savings vary.
How Heat Pump Water Heaters Work
Instead of generating heat directly like traditional water heaters, heat pump water heaters move heat from the surrounding air into the water tank - the same technology used in refrigerators and air conditioners, but in reverse.
- 2-3x More Efficient
Uses 50-70% less electricity than standard electric water heaters
- Cools & Dehumidifies
Bonus cooling effect in the space where it's installed (great for basements)
- Same Hot Water
Delivers the same amount of hot water as a traditional tank
Efficiency Comparison (UEF)
UEF = Uniform Energy Factor. Higher is more efficient.
2026 Water Heater Rebate Amounts
Mass Save offers rebates for heat pump water heaters, with higher amounts for income-qualified households.
| Equipment | Standard Rebate | Income-Qualified |
|---|---|---|
| Heat Pump Water Heater (50+ gal) | $750 | $1,250 |
| Heat Pump Water Heater (< 50 gal) | $500 | $1,000 |
| Federal Tax Credit | 30% (up to $2,000) | 30% (up to $2,000) |
Example: 50-Gallon Heat Pump Water Heater
Payback Period
With $385/year in energy savings:
Then save $385+ every year for 10-15 year lifespan
Installation Requirements
Ideal Locations
- • Basement (most common)
- • Garage (if climate-controlled)
- • Utility room with good airflow
- • Spaces that stay 40-90°F year-round
Space Requirements
- • ~700+ sq ft of surrounding air space
- • Ceiling height: 7 ft minimum
- • Clearance for air circulation
- • 240V electrical outlet (same as dryer)
Popular Heat Pump Water Heaters
Rheem ProTerra
Top-rated efficiency, WiFi enabled, quiet operation
A.O. Smith Voltex
Reliable brand, multiple modes, good warranty
Bradford White AeroTherm
Pro-grade quality, quiet, compact design
Ready to Upgrade Your Water Heater?
Start with a free Home Energy Assessment to get personalized recommendations and confirm your rebate eligibility.
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