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Air Source Heat Pump Rebates, Incentives, & Financing

Info for: ResidentialCommercialEducationCommunityContractorsEconomic Development

If you are considering a new heating or cooling system for your home, heat pumps offer a single, energy efficient solution. According to the Massachusettes Department of Energy Resourceshomeowners who convert from electric baseboard heaters to air source heat pumps can potentially decrease their annual heating bills by 70%.  

The most common heat pump application, a mini split, can be found in multifamily housing, serve as a retrofit add-on to houses with "non-ducted" heating systems, or be a good choice for room additions and small apartments. Ducted mini splits can take advantage of existing ductwork and offer a viable alternative to central HVAC systems.

Like central systems, mini splits have two main components: an outdoor compressor/condenser, and an indoor air-handling unit. A conduit houses the power cable, refrigerant tubing, suction tubing, and a condensate drain, links the outdoor and indoor units.

Advantages of Mini Split Technology include:

  • Small, single device for heating and cooling
  • Climate flexibility for each room
  • Significant energy cost savings (compared to conventional electric heating and cooling systems)
  • Energy efficiency

Heat Pump Rebates, Incentives & Financing

HG&E’s Residential Energy Conservation Program 0% assistance for a variety of energy conservation
measures, including air source heat pumps.
Assistance up to $5,000
HG&E’s Cool Homes Program High efficiency air conditioning and heat pump
rebate program.
Rebate up to $500
Massachusetts Alternative Energy Certificates AECs are provided to homeowners installing qualifying air source heat pumps, based on market conditions. $3-$12 per certificate
Mitsubishi Muni Heat Pump Rebate Program Incentives for customized home energy improvements, including weatherization and heat pumps. $300 - $600 discount
MassCEC Whole-Home Air-Source Heat Pump Pilot This pilot is available to new construction homes and existing homes that are served by natural gas. Incentive up to $5,500

Further Resources: Some of this information in this guide is taken from the Northeast Energy Efficiency’s Air Source Heat Pump Buying Guide and MassCEC’s Heat Pump Guide.

If you are a commercial customer interested in heat pump technology, there are incentives available through HG&E’s Commercial Energy Conservation Program.

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