Mass Save Heat Pump Rebates Explained for 2026
How much Mass Save pays for a heat pump in 2026, what whole-home and partial-home mean, how the 0% loan works, and what changes on January 1, 2027.
A whole-home heat pump rebate is $2,650 per ton in 2026, capped at $8,500. It drops to $2,350 per ton, capped at $7,500, for projects installed on or after January 1, 2027, so the install date matters more than the signing date. The numbers below come from Mass Save’s own air-source heat pump page.
First, what is a heat pump?
An air-source heat pump moves heat rather than making it by burning something. In winter it pulls heat from outdoor air into your house; in summer it runs backward as an air conditioner. A single system does both jobs, which is why many homeowners use one to replace a window AC and an aging oil or gas furnace in one project.
Heat pumps are sized in “tons” of capacity. A typical Massachusetts house might need two to four tons across several indoor units, though a heat-loss calculation from a contractor is the only way to know yours.
The 2026 rebate amounts
Mass Save’s 2026 air-source heat pump rebates, per its air-source heat pump page. Tons are calculated from the unit’s AHRI cooling capacity divided by 12,000 BTUs. From October 1, 2026, every rebate application also needs a clear photo of the nameplate showing the serial number of each outdoor unit.
| Rebate type | Amount | Maximum |
|---|---|---|
| Whole-home | $2,650 per ton | $8,500 |
| Partial-home | $1,125 per ton | $8,500 |
| Basic | $250 per ton | $2,500 |
Whole-home vs partial-home vs basic
Mass Save pays whole-home when the heat pumps are the sole source of heating and cooling. It pays partial-home when you keep an existing boiler or furnace to supplement them. Partial-home customers can add a $500 weatherization bonus (Home Energy Assessment plus recommended weatherization within one year before or six months after the install) and a $500 sizing bonus for heat pumps sized to meet the home’s total heating needs.
Basic is for homes that are not displacing fossil-fuel or electric-resistance heat: updating an existing heat pump or central air conditioner, adding a heat pump to a new addition, or putting one in a home that is empty in winter.
Working out your rebate
Take the tons installed, multiply by the per-ton rate, and see whether you hit the cap. For example:
- A 3-ton whole-home system: 3 x $2,650 = $7,950, under the $8,500 cap.
- A 4-ton whole-home system: 4 x $2,650 = $10,600, so you hit the $8,500 cap.
- A 2-ton partial-home system: 2 x $1,125 = $2,250.
These are worked examples of the formula, not quotes. Your actual rebate depends on the equipment, the installer’s documentation and Mass Save’s approval.
What changes on January 1, 2027
Mass Save’s page says that for installations on or after January 1, 2027, the whole-home rebate drops to $2,350 per ton, capped at $7,500, and the partial-home rebate drops to $1,000 per ton, capped at $7,500.
Using the same 3-ton whole-home example, that is $7,050 instead of $7,950, which is $900 less. The cap falls $1,000 for bigger systems.
For projects that straddle the new year, Mass Save’s wording is about installation: the lower rate applies to projects “installed on or after January 1, 2027.” A system installed in December 2026 gets the 2026 rate.
Help for lower-income households
Mass Save also has income-based programs that go well beyond the standard rebates. Mass Save lists enhanced, income-based incentives of up to $16,000, or up to no cost through Turnkey services, for qualifying households. Income limits depend on household size and are set in a table on Mass Save’s enhanced rebates page. Mass Save also says weatherization recommended in your Home Energy Assessment generally has to be finished before you apply for the enhanced rebate. Your town’s Energy Advocate may also help with the application.
The 0% HEAT Loan
For the part the rebate does not cover, Mass Save’s HEAT Loan offers 0% interest financing. According to Mass Save, the maximum financeable amount rose to $25,000 starting January 1, 2025, with any available Mass Save incentives deducted from the project cost first. Loans are issued by participating lenders, and Mass Save’s consumer page says terms run up to seven years depending on your sponsor and lender. Mass Save also says to apply for the loan before the equipment is installed, and heat pumps must be installed by a contractor in the Heat Pump Installer Network to qualify.
What about the federal tax credit?
The federal home energy credit for heat pumps (Section 25C) does not apply to property placed in service after December 31, 2025, according to the IRS. That means 2026 projects depend more on Mass Save and any utility or local support. Check with a tax professional for your own situation.
The seasonal electric rate
Eligible customers can get a Seasonal Heat Pump Rate, a lower electric rate from November through April, according to Mass Save’s heat pump page. Ask your utility whether your account qualifies.
How to start
- Book a Mass Save Home Energy Assessment. It is no cost, virtual or in person, and it ends with a report listing the rebates you qualify for. Start at masssave.com/residential/rebates-offers-services/home-energy-assessments or call the Mass Save Solutions Center at 1-866-527-7283 (Monday to Friday 8 am to 6 pm, Saturday 8 am to 1 pm). Air sealing or insulation recommended there can reduce the size of the system you need.
- Get at least two or three quotes from installers that include the tonnage, the equipment, whether the system is meant to be whole-home or partial-home, and who submits the rebate paperwork.
- Ask about the electrical panel. Some houses need a panel upgrade or a new circuit. That cost is separate from the rebate and worth asking about up front.
- Use a contractor in the Mass Save Heat Pump Installer Network, which Mass Save requires for the rebate and the HEAT Loan.
- Keep the paperwork. Save the invoice, equipment model numbers and the rebate approval.
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Sources
- Mass Save: Home Energy Assessmentsmasssave.com
- Mass Save: Contact (Solutions Center)masssave.com
- Mass Save: Air source heat pumpsmasssave.com
- Mass Save: Enhanced heating and cooling equipment rebatesmasssave.com
- Mass Save: 0% interest financing (HEAT Loan)masssave.com
- IRS: Energy Efficient Home Improvement Creditirs.gov
- Green Newton: Heat pump incentives for Newton residents in 2026greennewton.org
Details such as dates, hours and prices come from the sources above and can change. Check with the organizer before you go.
How we report: every date, price and address comes from a linked source.
