Massachusetts Heat Pump Rebates
Stackable incentives available to Massachusetts homeowners installing a qualifying heat pump in 2026.
Rebate data is re-verified against primary sources every two months.
What's available in Massachusetts
Massachusetts is the most generous state in the country for heat pump incentives — if you are served by a Mass Save sponsor. Mass Save's whole-home air-source rebate stepped down for 2026, from $10,000 ($3,000/ton) to $8,500 ($2,650/ton), with R-410A systems removed from the Qualified Products List on Jan 1, 2026; a separate partial-home tier pays $1,125/ton under the same cap when the heat pump supplements rather than replaces existing heat. The geothermal pathway remains exceptionally strong at $13,500 whole-home, with a partial-home tier at $2,000/ton. Income-eligible enhanced incentives are fuel-specific: up to $16,000 per home for air-source and up to $25,000 for ground-source. A typical ASHP install stacks the $8,500 whole-home rebate with the $750 heat pump water heater rebate for $9,250 in non-income-qualified rebates, plus 0% HEAT Loan financing up to $25,000 — Mass Save's own pages prohibit combining its incentives for the SAME equipment, but space heating and water heating count as different equipment. Important exclusion: only households served by a Mass Save sponsor (Berkshire Gas, Cape Light Compact, Eversource, Liberty Utilities, National Grid, Unitil) qualify. Homes in the state's roughly 41 municipal light plant towns are not eligible and rely on much smaller town programs — Belmont Light, for example, pays $1,000/ton up to about $5,000. Massachusetts has accepted DOE HEAR/HOMES funding but DOER is integrating HEAR into Mass Save's income-eligible pathway rather than launching a separate state portal, so the federal $8,000 HEAR adder is not separately claimable. Both §25C and §25D were repealed effective December 31, 2025.
HEEHRA in Massachusetts
HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. Massachusetts HEEHRA is closed as of 2026-09-07 — funding fully exhausted.
How heat pump rebates work in Massachusetts
Massachusetts is the most generous state in the country for heat pump incentives, but Mass Save's whole-home air-source rebate stepped down for 2026 — from $10,000 ($3,000/ton) to $8,500 ($2,650/ton), with R-410A systems removed from the Qualified Products List on January 1, 2026 (only next-generation refrigerants R-32 or R-454B are now eligible). The geothermal pathway remains exceptionally strong at $13,500 whole-home, and there is a separate partial-home tier for heat pumps that supplement rather than replace existing heat — $1,125 per ton for air-source, $2,000 per ton for ground-source. Income-eligible enhanced incentives are fuel-specific rather than a single range: up to $16,000 per home for air-source, up to $25,000 for ground-source. One large caveat the headline numbers hide: only households served by a Mass Save sponsor (Berkshire Gas, Cape Light Compact, Eversource, Liberty Utilities, National Grid, Unitil) are eligible at all. If your town has a municipal light plant — roughly 41 of them statewide — you are outside Mass Save and rely on your town's own, much smaller program; Belmont Light, for instance, pays $1,000 per ton up to $5,000 plus $1,000 adders for low-income customers, weatherization, or fossil-system removal. MLP customers can, however, use the state's DOER MLP Z-Loan, a 0% loan of up to $25,000 over 5 years for heat pumps and weatherization, in place of the Mass Save HEAT Loan they cannot access. A typical ASHP install stacks the $8,500 whole-home rebate with the $750 heat pump water heater rebate for $9,250 in non-income-qualified rebates, plus 0% HEAT Loan financing up to $25,000 (income-tiered terms: 7 years for households below 135% State Median Income, 5 years for 135-300% SMI, 3 years above 300% SMI). Massachusetts has accepted DOE HEAR/HOMES funding but DOER is integrating HEAR into Mass Save's income-eligible pathway rather than launching a separate state portal — so the federal $8,000 HEAR adder is not yet claimable as standalone. Cape Light Compact (a Mass Save sponsor on Cape Cod / Martha's Vineyard) offers enhanced incentives of up to 80% of installed cost. §25C federal credit was repealed effective 2025-12-31; the §25D 30% geothermal credit was also repealed effective December 31, 2025.
Massachusetts rebate programs
Mass Save Whole-Home Air-Source Heat Pump
$8,500Whole-home air-source heat pump rebate: $2,650 per ton up to $8,500 when the heat pump becomes the home's primary heating system. A separate partial-home tier pays $1,125 per ton (same $8,500 cap) when the heat pump supplements existing heating, and a Basic tier pays $250 per ton up to $2,500 for qualifying equipment that does not meet the whole- or partial-home requirements. Tons are AHRI cooling capacity divided by 12,000 BTU, and equipment must be ENERGY STAR Cold Climate and on the Mass Save Heat Pump Qualified Products List. Income-eligible households can receive an enhanced incentive of up to $16,000 per home for air-source systems, or a no-cost install through turnkey services. Equipment must be installed January 1 to December 31, 2026, with forms due by February 28, 2027, and the rebate cannot be combined with other Mass Save incentives for the same equipment. Only households served by a Mass Save sponsor (Berkshire Gas, Cape Light Compact, Eversource, Liberty Utilities, National Grid, Unitil) are eligible; homes in Massachusetts's municipal light plant towns are not.
Mass Save Ground-Source (Geothermal) Heat Pump Rebate
$13,500Whole-home ground-source rebate of $13,500 per home, with a separate partial-home tier at $2,000 per ton, also capped at $13,500 on masssave.com (Cape Light Compact's page has shown up to $15,000, a discrepancy that could not be resolved on a third source). Income-eligible households can receive an enhanced incentive of up to $25,000 per home for ground-source systems, a geothermal-specific figure, not a range shared with air-source, which tops out at $16,000. Equipment must be installed January 1 to December 31, 2026, with forms due by February 28, 2027. Cannot be combined with other Mass Save incentives for the same equipment; the federal 30% geothermal credit expired for expenditures after December 31, 2025.
Mass Save Heat Pump Water Heater Rebate
$750$750 per unit toward a qualifying heat pump water heater, including 120-volt/15-amp plug-in models; split-system heat pump water heaters get $1,500 per system. The rebate is usually taken as an instant discount through a licensed plumber buying from a participating distributor, at Home Depot or Lowe's with a validation code, or on the Mass Save online marketplace, with a mail-in or online form as the fallback. Equipment must be installed by a licensed plumber between January 1 and December 31, 2026, with forms due by February 28, 2027. Mass Save states this rebate may not be combined with any other Mass Save, utility, or efficiency provider offer for the same equipment, but it remains combinable with a space-heating heat pump rebate since those cover different equipment.
Mass Save HEAT Loan (0% financing for heat pumps)
$25,0000% interest financing up to $25,000 (no change from 2025) for qualifying energy-efficiency upgrades including heat pumps and heat pump water heaters. Loan terms in 2026 are income-tiered: 7 years (below 135% SMI), 5 years (135-300% SMI), or 3 years (above 300% SMI). No origination fees, no closing costs, no prepayment penalties. Cash-flow tool that does not reduce sticker price; financing only.
MA HEEHRA (income-qualified)
$8,000Federally-funded HEAR rebate ($8,000 max for heat pumps for ≤80% AMI households). Massachusetts has accepted DOE HEAR funding ($72.8M HEAR + $73.2M HOMES of $145.9M total IRA allocation), but the consumer portal is NOT yet launched as of April 2026. DOER is integrating HEAR directly into Mass Save's existing income-eligible programs, so there will be no separate state HEAR application — when it lands, the rebate will surface through Mass Save's enhanced (income-eligible) heat pump pathway. Until then this rebate is not currently claimable as a standalone program.
Massachusetts Municipal Light Plant Heat Pump Rebates (e.g. Belmont Light)
$5,000Households in Massachusetts's municipal light plant towns are NOT eligible for Mass Save electric-side rebates and instead rely on their town utility's own, typically smaller program. Belmont Light is representative: $1,000 per ton for partial- or whole-home cold-climate heat pump installs (NEEP ccASHP list), capped at $5,000 per account, with $1,000 adders each for low-income rate customers, completing weatherization within 6 months, or removing the fossil-fuel system at install. A home energy assessment within the last 3 years is required and applications are due within 6 months of install. Amounts vary substantially by town, so check your municipal light plant directly rather than assuming the headline Mass Save figures apply.
7 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.
A worked example: whole-home ASHP install in Worcester
Daniel owns a 2,100 sq ft home in Worcester served by National Grid (a Mass Save sponsor), currently heated by a 25-year-old gas furnace with central AC. He gets quotes for a 3.5-ton ducted air-source heat pump with R-32 refrigerant, NEEP cold-climate certified, sized to fully displace the gas furnace as the primary heat source with backup electric resistance for the coldest hours. Installed cost: $19,200. Because the install is a whole-home heat pump that fully displaces fossil heating, he qualifies for the Mass Save Whole-Home ASHP rebate at $2,650/ton × 3.5 tons = $9,275, capped at $8,500. He also installs a new ENERGY STAR HPWH at $2,400 (replacing a gas water heater), qualifying for the additional Mass Save HPWH rebate at $750 (paid as an instant discount through the participating plumber). His household income is approximately 175% of Worcester's AMI — above the income-eligible threshold, so Mass Save's enhanced tier doesn't apply and the HEAR-via-Mass-Save integration isn't yet active for moderate-income households. The federal §25C credit is gone. Combined stack: $8,500 ASHP + $750 HPWH = $9,250 against $19,200 + $2,400 = $21,600 total project cost. Net out-of-pocket: $12,350. He uses a 0% HEAT Loan over 5 years (his SMI tier) to finance the balance.
Choosing a contractor in Massachusetts
Massachusetts licenses HVAC technicians through the Division of Professional Licensure as refrigeration technicians (Universal CFC-certification at the federal level plus state work-experience requirements). Mass Save rebates require the contractor to be in the Mass Save Heat Pump Installer Network — a non-Network contractor cannot file the rebate. The Network roster is searchable at masssave.com. For the Whole-Home tier specifically, the contractor must verify backup-heat removal and fossil-fuel displacement as part of the application, which adds documentation overhead at install. Confirm both Network enrollment and Whole-Home tier familiarity at the quote stage.
Common pitfalls for Massachusetts homeowners
- Buying R-410A equipment after January 1, 2026. Mass Save removed R-410A refrigerant systems from the Qualified Products List effective January 1, 2026. Only next-generation refrigerants (R-32 or R-454B) are eligible for the 2026 rebate. Several contractor inventories still include R-410A stock from 2025 — confirm refrigerant type on the AHRI certificate before signing. R-410A equipment is still legal to install but won't qualify for the rebate.
- Confusing whole-home and partial-load installs. The $8,500 Mass Save rebate is for whole-home installs with backup heat removal and full fossil/resistance displacement. A partial-home install (heat pump as supplement to a retained gas furnace, dual-fuel configuration) drops to the $1,125 per ton partial-home tier, and equipment that meets neither whole- nor partial-home requirements falls to the Basic tier of $250 per ton up to $2,500. The contractor must verify whole-home displacement at install for the rebate to process at the headline amount.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- Mass Save Whole-Home Air-Source Heat Pump−$8,500
- Massachusetts Municipal Light Plant Heat Pump Rebates (e.g. Belmont Light)−$5,000
- Mass Save Heat Pump Water Heater Rebate−$750
Estimate only. Includes only programs accepting applications today — waitlisted or closed programs are excluded. Mutually exclusive programs (e.g. HEEHRA vs HOMES) and project-cost caps are applied per current program rules; confirm with your installer and utility before signing.
How to claim each rebate
- Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
- Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
- Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
- Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.
If you can't afford a replacement in Massachusetts
Rebates lower the price, but they still assume you can pay the rest. If your heating system is unsafe or has failed and a new one is out of reach, these programs repair or replace equipment at low or no cost for income-qualified households. Heat Pump Pricing Index is an independent information site — we don't fund, discount, or install equipment — so these are the doors to knock on first:
- Weatherization Assistance Program (WAP). Free energy and health-and-safety repairs — an unsafe furnace is exactly the kind of problem it fixes — for households at or near 200% of the poverty line. Apply through your local community action agency: how to apply (energy.gov).
- LIHEAP. Heating-bill help plus, in most states, a crisis component for broken or dangerous heating equipment. Same local agency; Massachusetts LIHEAP contacts.
- USDA Section 504 Home Repair. For homeowners outside cities: 1% loans up to $40,000, and grants up to $10,000 for homeowners 62 and older to remove health and safety hazards. Program page and state offices (rd.usda.gov).
- Your utility and 211. Most electric and gas utilities run an income-qualified assistance fund — call the number on your bill and ask. Dialing 211 reaches a local specialist who knows which agencies in Massachusetts currently have funds.
Safety first: if a technician has told you a heat exchanger is cracked, stop using the furnace and make sure you have a working carbon monoxide detector before anything else.