Residential & Small-Scale Air-Source Heat Pump Program

February 28, 2023

Summary

Massachusetts offers rebates for the installation of small-scale, high-efficiency, cold-climate air-source heat pumps (ASHPs) in residential, commercial, public, and non-profit buildings.

Project sites must be located in a utility territory that contributes to the Renewable Energy Trust Fund (National Grid, Eversource, Unitil, and municipal light plants that have agreed to pay into the fund). Alternatively, the project may be located in the territory of a municipal light plant that does not pay into the fund if the project will be replacing an existing (non-ASHP) electric heating system.

Rebate amount varies by type and size of project. Rebate amounts are as follows:

Residential:

  • Single-Head System: $625 per system (3 system maximum)
  • Single-Head System (120% state median income): $800 per system (3 system maximum)
  • Single-Head System (80% state median income): $1,500 per system (3 system maximum)
  • Central or Multi-Head System: $625 per 12,000 BTU/hr, up to $2,500
  • Central or Multi-Head System (120% of state median income): $800 per 12,000 BTU/hr, up to $3,200
  • Central or Multi-Head System (80% of state median income): $1,500 per 12,000 BTU/hr, up to $6,000

Small-Scale Non-Residential Entities:

  • Single-Head System: $625 per system (20 system maximum)
  • Single-Head System (Public-Non-Profit): $800 per system (20 system maximum)
  • Single-Head System (Affordable Housing): $1,500 per system (20 system maximum)
  • Central or Multi-Head System: $625 per 12,000 BTU/hr, up to $12,500
  • Central or Multi-Head System (Public/Non-Profit): $800 per 12,000 BTU/hr, up to $16,000
  • Central or Multi-Head System (Affordable Housing): $1,500 per 12,000 BTU/hr, up to $30,000

An individual project system owner may not be awarded more than $500,000 in total awards through this program and the commercial-scale ASHP program in a fiscal year.

A complete list of equipment eligibility requirements is available in the Program Manual. Cooling only units and single-stage heat pumps are not eligible from rebates under this program. 

After a project is completed, rebate applications and other required documents may be submitted via email. Applications must be submitted before the program deadline and within 60 days of project completion. For application details, see the Program Manual.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Massachusetts
Incentive Type: Rebate Program
Web Site: http://www.masscec.com/get-clean-energy/residential/air-source-heat-pumps
Administrator: Massachusetts Clean Energy Center
Start Date:
Eligible Renewable/Other Technologies:
  • Heat pumps
Incentive Amount: Single-Head Systems: $625 - $1,500 per system
Central or Multi-Head System: $625-$1,500 per 12,000 BTU/hr
Maximum Incentive: Residential: $2,500
Residential (120% of state median income): $3,200
Residential (80% of state median income): $6,000
Non-Residential: $12,500
Non-Residential (Public/Non-Profit): $16,000
Non-Residential (Affordable Housing): $30,000
Eligible System Size: Single-Head Ductless systems:
Residential: 3 units
Non-Residential: 20 units

Central or Multi-Head Systems:
Residential: 48,000 BTU/hr
Non-Residential: 240,000 BTU/hr
Equipment Requirements: See the Program Manual, available on the program website, for a complete list of equipment requirements.
Installation Requirements: Installer(s) must demonstrate that they have received proper training and qualification.

Incentives

This program has 5 incentives
Technologies: Heat pumps
Sectors: Residential
Parameters: The incentive is 625.00 $/Unit, The incentive has a minimum of $2500.00
Technologies: Heat pumps
Sectors: Low Income Residential
Parameters: The incentive has a minimum of $6000.00, The incentive has a maximum of 800.00 $/Unit
Technologies: Heat pumps
Sectors: Commercial, Multifamily Residential
Parameters: The incentive is 625.00 $/Unit, The incentive has a minimum of $12500.00
Technologies: Heat pumps
Sectors: Local Government, Nonprofit, Schools, State Government, Federal Government
Parameters: The incentive is 800.00 $/Unit, The incentive has a minimum of $16000.00
Technologies: Heat pumps
Sectors: Multifamily Residential
Parameters: The incentive has a minimum of $30000.00

Contact

Name: Massachusetts Clean Energy Center
Address: 63 Franklin St, 3rd Floor
Boston MA 02110
Phone: (617) 315-9357
Email: ASHP@masscec.com

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.