Do you currently heat with gas, oil or propane, and want to convert to a cleaner heating system that can also provide cooling for your home? Additional assistance is now available to help you convert to air source heat pump systems (ASHPs) and mini-splits as your primary heating system through HG&E's Whole-Home Air Source Heat Pump Program!
Please Note: Before submitting your application for this program, please take into consideration that while heat pumps and mini-splits can potentially reduce your annual heating costs (depending on your current heating fuel and the efficiency rating of your system), whole-home heat pump systems that are sized to provide 100% of a home's heating needs (which is a requirement of this program) typically have much higher installation costs than a conventional heating system, ranging from $15,000 - $20,000+ for an average home. While costs can vary significantly depending on the installer you work with and your particular home's needs, it is recommended that you take this into consideration before applying for this program. If you would prefer to install a heat pump or mini-split system that can cover some, but not all, of your home's heating needs, we have a lesser heat pump rebate ($250/ton up to $1,000) available. Please see our heating and cooling rebates page for details.
|HG&E PROGRAM INCENTIVES:|
|ASHP Rebate*||Tier 1 Rebate**: $600/Ton (If keeping existing heating system)
(Maximum rebate: $2,400 for single-family homes, $1,200 per unit for multi-family homes.)
Tier 2 Rebate: $750/ton (Must decommission existing heating system)
(Maximum rebate: $3,000 for single-family homes, $1,500 per unit for multi-family homes).
|Weatherization Rebate Adder||75% of cost (available for any insulation, air sealing and/or duct sealing work recommended in your energy audit)
(Maximum rebate: $3,000 for single-family homes, $1,500 per unit for multi-family homes)
|Residential Energy Conservation Program||Financial assistance at 0% interest (Up to $10,000 for single-family homes, up to $15,000 for properties with 2 units, and up to $20,000 for properties with 3-4 units. Maximum repayment term of 60 months.)***|
|*Rebate based on ASHP maximum heating capacity at 5 degrees F. (Note: 1 Ton = 12,000 BTUs).
**Customers who receive the Tier 1 rebate can receive the remaining difference in amount between Tier 1 and Tier 2 rebate (extra $150/ton) if existing heating system is removed within 2 years after ASHP system is installed (proof of removal required).
***In order to receive assistance through the Residential Energy Conservation Program, customer must adhere to the terms and conditions of that program.
|ADDITIONAL NON-HG&E INCENTIVE OPPORTUNITIES FOR HEAT PUMPS|
|Mitsubishi Muni Heat Pump Discount||$300-$600 Discount: Available to customers who work with a Mitsubishi Diamond Contractor. Additional eligibility requirements apply; Click here for more information.|
|Mitsubishi Synchrony Financing||Financing program: Ask a Mitsubishi Diamond Contractor for more information on their Synchrony financing program.|
|Rental Neighborhood Improvement Program||Low-interest loans available for multi-family properties with low-income tenants to assist with various building improvements. Click here for more information.|
HOW TO APPLY:
Step 1: Apply
Get started by first reviewing the program eligibility criteria and then submitting a pre-application (both are located in the Program Resources section below).
Step 2: Receive an Energy Audit
If your pre-application is approved, we will provide you with instructions to schedule a free program-specific ASHP energy audit through our audit partner, the Center for EcoTechnology (CET). CET will provide you with weatherization recommendations and determine your home's heating requirements.
Step 3: Obtain Proposals
Provide your chosen installer with your home's heating requirements that were determined by CET as well as the system and installer requirements. Also consider obtaining a quote from a licensed contractor for the weatherization recommendations from your audit report.
Please note: It is recommended that you have a contract with any contractor you decide to work with in order to protect you from any damages that may occur as a result of the project, and that the contract is in line with the Massachusetts Home Improvement Contractor Guaranty Fund. It is also recommended that you talk to your installer about their payment expectations as you will be responsible for all payments to your contractor(s). (You will not receive your payment(s) through the Whole-Home Heat Pump Program until at least 3 weeks after the heat pump system has been installed.
Step 4: Assess Your Options
Submit your proposals to CET so they can advise you on the various costs and benefits for completing the weatherization recommendations before you install the ASHP. They will also review the ASHP proposal you choose to move forward with to ensure it meets the program eligibility requirements. (Be sure to provide CET with the AHRI number for each unit being considered as well as the size of any additional electric heating elements).
Step 5: Request Financial Assistance (Optional)
Submit the Residential Energy Conservation Program application (below) if you would like to request financial assistance at 0% interest to help with your installation costs. Please note: In order to receive assistance through the Residential Energy Conservation Program, you must comply with the eligibility requirements, terms and conditions of that program, and a $100 administrative fee applies.
Step 6: Have the Work Completed
Complete the weatherization recommendations from your audit report if you have decided to move forward with them. Then have your new ASHP system installed.
Step 7: Receive Payment
HG&E will mail you a check for your ASHP rebate, weatherization rebate (if applicable) and Residential Energy Conservation Program assistance approximately three weeks after your ASHP system has been installed and we receive all required post-installation paperwork from your installer.