Residential & Small-Scale Ground-Source Heat Pump Program

August 14, 2019


Massachusetts offers rebates for the installation of new, small-scale high-efficiency ground-source heat pumps (GSHPs) in residential, multi-family, commercial, institutional, 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). Project sites must also be occupied year-round.

Rebate amount varies by the size of the system(s) installed. Efficiency adders are available and are based on the system's Coefficient of Performance (COP). Adders based on income and customer type are also available. Rebate amounts and adders are as follows:

Base Rebate  = $1,500 per heating ton (12,000 BTU/hr) 

Efficiency Adder = $1,000 per ton for every 1.0 COP rating above the Minimum COP for the system

Income-Based Adder = $1,500 per ton for owners with household incomes less than 80% of the state median income or $1,000 per ton for owners with household incomes between 80% and 120% of the state median income.

Public/Non-Profit Adder = $750 per ton (Note: Third-party-owned projects are not eligible for this adder)

Affordable Housing Adder = $1,000 per ton

Rebates are limited to the first five tons of heating capacity per housing unit for residential buildings and to the first ten tons of heating capacity for non-residential buildings. The maximum rebate for a residential system is $12,500 plus any income-based adder. The maximum rebate for non-residential and multi-family residential projects is $25,000 plus any public/non-profit or income-based adder.

Rebates for retrofit installations are also available and are equal to total eligible costs multiplied by the applicable percentage, based on project type. Percentages are located in the Program Manual, along with rebate caps by project type.

Individual project system owners may not be awarded more than $100,000 in total awards in a fiscal year. Applications must be submitted and approved before installation begins. Complete application details can be found in the Program Manual and on the program website.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Massachusetts
Incentive Type: Rebate Program
Web Site:
Administrator: Massachusetts Clean Energy Center
Start Date:
Eligible Renewable/Other Technologies:
  • Geothermal Heat Pumps
Incentive Amount: $1,500 per heating ton
Maximum Incentive: Residential: $12,500 plus any income-based adder
Non-residential: $25,000 plus any public/non-profit or income-based adder
Eligible System Size: Rebates are limited to 5 heating tons for residential owners and 10 heating tons for non-residential owners.
Equipment Requirements: For a full list of equipment requirements, see the Ground-Source Heat Pump Program Manual, available on the program website.
Installation Requirements: Applications must be formally approved before installation begins. Installers must be accredited by the International Ground-Source Heat Pump Association (IGSHPA), be a certified GeoExchange Designer (CGD), be a licensed Professional Engineer (PE), OR submit 3 references and receive one of the above accreditations within one year.


This program has 2 incentives
Technologies: Geothermal Heat Pumps
Sectors: Residential
Parameters: The incentive has a minimum of $12500.00
Technologies: Geothermal Heat Pumps
Sectors: Commercial, Local Government, Nonprofit, Schools, State Government, Federal Government, Multifamily Residential, Institutional
Parameters: The incentive has a minimum of $25000.00


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

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.