Massachusetts Heat Pump Rebates
Stackable incentives available to Massachusetts homeowners installing a qualifying heat pump in 2026.
What's available 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 Jan 1, 2026. The geothermal pathway remains exceptionally strong at up to $13,500 (or $16,000-$25,000 income-eligible). 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. 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. 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 §25C federal credit was repealed effective 2025-12-31; §25D 30% residential clean energy credit for geothermal remains through 2032.
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 2026-04-30 — 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 up to $13,500 (or $16,000-$25,000 income-eligible). 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; §25D 30% for geothermal remains through 2032.
Massachusetts rebate programs
Mass Save Whole-Home Air-Source Heat Pump
$8,500Up to $8,500 (down from $10,000) for whole-home air-source heat pump installations effective Jan 1, 2026. Per-ton incentive cut from $3,000/ton to $2,650/ton, capped at $8,500 per home. Requires whole-home installation with backup heat removal and a contractor in the Mass Save Heat Pump Installer Network. R-410A refrigerant systems removed from the Qualified Products List effective Jan 1, 2026 — only next-generation refrigerants (R-32 or R-454B) eligible. Equipment must be installed between Jan 1 and Dec 31, 2026; rebate documentation due by Feb 28, 2027.
Mass Save Ground-Source (Geothermal) Heat Pump Rebate
$13,500Up to $13,500 for residential ground-source (geothermal) heat pump systems through Mass Save. Income-eligible households (sponsored by Eversource, National Grid, Cape Light Compact, etc.) may receive enhanced incentives of $16,000-$25,000 depending on AMI tier; lowest-income households may qualify for no-cost installation. Federal §25D 30% residential clean energy credit for geothermal stacks separately and remains available through 2032.
Mass Save Heat Pump Water Heater Rebate
$750$750 instant rebate for ENERGY STAR certified heat pump water heaters when working with a participating licensed plumber/installer who purchases through a participating distributor. Eligible for residents replacing existing electric, propane, natural gas, or oil water heaters. Equipment must be installed between Jan 1 and Dec 31, 2026; rebate documentation due by Feb 28, 2027. Stackable with the whole-home heat pump rebate.
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.
5 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-load install (heat pump as supplement to retained gas furnace, dual-fuel configuration) typically defaults to a much smaller rebate or none at all. 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
- 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.