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HG&E Whole-Home Air-Source Heat Pump Program

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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. 

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.
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.



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. 


Eligibility Criteria


Air Source Heat Pump (ASHP) System & Installer Requirements:

(*Click here for printable version)

1. Each ASHP Unit Must:

2. The Entire ASHP System Must:

  • ASHP system (including any electric resistance elements) must be sized to provide 100%-115% of heating load within the entire conditioned/living space at the installation address.
    • *Single-head systems: May be rounded up to the next available size due to product availability and sizing requirement is applied to each unit individually.
  • ASHP system must be sized via ASHP maximum capacity at 0 degrees F if available. If not available, must be sized via maximum capacity at 5 degrees F.
  • Be sized via a room-by-room Manual J heat load calculation (Manual J design temperature of 0 degrees F). (If pre-existing duct system will be maintained, block load Manual J may be used if determined by the Center of EcoTechnology to be adequate).
  • Be capable of supplying heat down to -9 degrees F outdoor temperature
  • Electric resistance heating (baseboard) limited to no more than three 500 watt heaters to be used in spaces with no other heat source. (Exceptions may be made on a case-by-case basis).

3. ASHP Installer Must:

  • Be licensed in Massachusetts with manufacturer’s certificate of training within past 5 years
  • Complete and submit a post-installation form to HG&E after the project is complete
  • Note: Installers are recommended to install ASHP system based on NEEP’s Cold-Climate Installation Guidelines, which include ensuring any outdoor units have adequate clearance above historical average maximum snow depth
4. Quote or Other Documentation from Installer Must Contain:
  • AHRI # for each unit being installed
  • Size of any electric resistance or strip heat that will be installed
  • List of which indoor units will be connected to which outdoor units (if there is more than 1 outdoor unit)


Customer and Building Requirements: 

  • This program is available to residential customers of HG&E for owner-occupied properties with 4 units or less. (Assistance is not granted to tenants renting or leasing the property.)
  • Installation address must currently use natural gas, oil or propane as primary heating fuel (unless new construction or gut-rehab) and have an active HG&E residential electric account.
  • The new air source heat pump system must be used as the primary heating system at the installation address. (ASHPs used only for cooling are not eligible).
  • Applicant's account must be in good standing with HG&E, (6- 12 month history of satisfactory payments) and there shall be no Municipal tax liens on the property. For homeowners with no prior HG&E billing history, Applicant may submit a letter of credit from their previous utility provider.
  • Customer must live at address where ASHP system is being installed.
  • Customer must submit pre-installation application which must be approved by HG&E before installing ASHP.
  • Free program-specific ASHP Energy Audit required before installation (or equivalent Manual J calculation)
    • *Customers who heat with oil or propane must submit past year of fuel use data to CET before audit (if available).
  • Additional Terms and Conditions:
    • Heat Pump system must be installed on or after effective program start date.
    • To receive the higher Tier 2 ASHP rebate (provided if customer decommissions existing heating system), installer must indicate on post-installation form that existing heating system was decommissioned.
      • *Gas-Conversion Projects Only: In order for customers who are converting from natural gas to receive the higher Tier 2 rebate, customer must have their previous gas heating system decommissioned indefinitely by having the gas heating connection pipe cut and capped by a Massachusetts licensed gas plumber. Plumber must have valid gas permit for the project. Natural gas will not be available for heating load following ASHP conversion. Load transfer to other appliances subject to review and approval by HG&E. (Locations may be subject to additional requirements depending on gas service material and gas meter location(s)).
    • To receive the Weatherization Rebate Adder:
      • Weatherization contractor must be licensed
      • The weatherization services must have been recommended in your energy audit
      • Weatherization work must be completed no later than 6 months after installing program-approved ashp system.
      • Note: Weatherization rebate adder is not available for new construction or gut-rehabs. 
    • Customer is not eligible for any additional HG&E weatherization rebates for one year after project completion and is not eligible for any additional HG&E rebates for the ASHP system that is installed through this program. The Applicant is responsible for obtaining pricing, selecting a contractor, coordinating contractor scheduling and making payments to the contractor.
    • If customer has outstanding balance on HG&E account, any rebate over $100 will be applied to outstanding balance, and any remaining amount will be applied as on-bill credit.
    • At HG&E's option, the completed installation may be inspected by HG&E personnel or its representative to ensure compliance with the terms of this program.
    • HG&E reserves the right to change, suspend, or modify the terms of this program at any time, and reserves the right to inspect any installation. Gas service may be terminated for violation of any Program eligibility requirements.
    • Neither HG&E, CET, their agents, or employees shall be liable for any claims, loss, expenses, or injury whatsoever for work performed under the Agreement. HG&E and CET make no and have not made any warranties or representations, express or implied, and do not hereby claim any representation, warranty, or covenant as to the design, installation, fitness for any particular purpose, merchantability, condition, quality, performance, durability, or suitability of the equipment (or any installation of installer thereof), or the work in any respect. HG&E and CET do not endorse, guarantee, or warranty the equipment, work, or any particular contractor, vendor, manufacturer, or product. HG&E and CET do not make any representation of any kind regarding the results to be achieved by the equipment or work or its adequacy and safety. Customer acknowledges that the calculations of potential savings associated with the equipment or work are estimates only and are not guaranteed.


Residential Energy Conservation Program Application

Installer Post-Installation Form


What Are Air Source Heat Pumps and Mini-Splits?

Air source heat pumps, sometimes referred to as mini-splits, are an energy-efficient electric heating and cooling system type becoming more popular in cold climates due to recent advancements in technology. Click here to learn more about this technology.

What Does the ASHP Energy Audit Entail? 

The ASHP energy audit is specifically designed to prepare homeowners who are installing a whole-home ASHP system to help you assess the benefits of improving your building's weatherization before ASHP system is installed. These weatherization improvements can include improving your insulation, air sealing and duct sealing which can reduce the amount of hot and cold air that escapes from your home, therefore reducing the amount of energy needed to heat and cool your home. Weatherizing your home can also reduce the size of the heating system that you will need, reducing your installation costs. CET will provide you with the estimated annual heating and cooling cost savings for moving forward with each recommendation. They will also determine the size of the heating system you will need based on your current building charecteristics, and will let you know what size system you would need if you moved forward with their weatherization recommendations. (If you currently heat with oil or propane, please provide CET with your fuel receipts from the past year so they can better estimate the annual energy savings estimates for the various recommendations from your audit report). 

Why Should I Receive Multiple Proposals from an Installer?

Weatherizing your home before installing a new heating system can often reduce the size of the system that's needed, therefore reducing installation costs. When you reach out to a qualifying installer, you will be able to provide them with the size of the heating system you need based on your current building characteristics, as well as the size of the system you would need if you move forward with the weatherization recommendations from the audit report. The installer will then be able to create two proposals for you to help you understand any reduction in your installation costs for weatherizing your home before installing the system. 

How will CET Help Me Assess My Options?

CET will work with you to review your ASHP proposals and any weatherization proposals. They will provide you with both an upfront and lifetime cost-comparison based on whether or not you move forward with the weatherization recommendations. The cost-comparison will take into account the rebates available through this program, your historical heating bills, and the installation costs from your proposals to help you understand the financial benefits of improving your building's weatherization before installing the ASHP system. 

What Post-Installation Paperwork Does My Installer Need to Submit?

HG&E will need to receive a completed ASHP post-installation form as well as a weatherization post-installation form (if applicable) from your installer(s) after the work has been completed. CET will provide your chosen installers with these forms. 

When will My Installer(s) be Paid?

It is up to you to pay your installer(s) for any work that is completed. Because it will take at least three weeks for you to receive the payment from us after the ASHP system is installed, it is recommended that you review the payment terms with your chosen installer, including the payment due date for the work they performed. 

Program Background

This program was designed to support the installation of high-quality, highly-efficient and optimally designed ASHP systems that operate year-round in cold climates and to help achieve Massachusetts goals of reducing greenhouse gas emissions by replacing higher emitting heating fuel sources with cleaner and more efficient electric heating and cooling systems.

Questions? Contact Sophie Theroux, HG&E Energy Efficiency Coordinator, at or by phone at (413) 536-9382.

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