Heat pumps and mini-splits are highly efficient electric heating and cooling systems that can be installed to heat and cool part and/or all of your home. With HG&E's low electric rates, they also have one of the lowest annual heating costs of any heating system type in Holyoke. Visit our heat pump and mini-split educational webpage if you would like information on how they work, how to find an installer, how much it costs to heat with a heat pump vs. other heating fuels, etc. Not sure where to start? Consider checking out our step-by-step guide!
Heat Pump and Mini-Split Incentives
HG&E Rebates:
Basic Heat Pump and Mini-Split Rebate
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$250/ton up to $1,000 for qualifying heat pump and mini-split systems.
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Whole-Home Air Source Heat Pump Program
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Higher rebate of $600-$750/ton available for qualifyig mini-splits and heat pumps that are sized to provide 100% of the home's heating needs. Higher weatherization rebate of 75% of cost available as well.
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Whole-Home Ground Source Heat Pump Program
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Rebate of $600-$750/ton available for qualifying ground source heat pumps that are sized to provide 100% of the home's heating needs. Higher weatherization rebate of 75% of cost available as well.
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Residential Energy Assistance Program
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Financial assistance at 0% interest for various projects including heat pumps/mini-splits, gas furnaces and boilers, central ACs, water heaters, weatherization, EV charging infrastructure and solar PV.
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Connected Homes
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Receive a $5-$8/month incentive for allowing HG&E to remotely adjust the temperature of heat pump or mini-split system a few times each month (Must have qualifying thermostat or heat pump controller).
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Free Home Energy Audit
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Get a free home energy assessment to find the best ways to lower your utility bills. You can also talk to the auditor about your potential savings with a whole-home heat pump system versus smaller mini-splits for just your most-used rooms.
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non-hg&e heat pump-related incentives:
New England Heat Pump Accelerator Instant Incentive ($300-$650+)
Funded by the EPA, this regional program lowers your upfront costs instantly at the time of purchase! (This instant discount can be combined with HG&E’s existing residential rebates.)
- $650 off per outdoor heat pump or mini-split unit (limit 2)
- $300 off per heat pump water heater (limit 1)
How to get it: When talking to heat pump installers, ask them if they work with an enrolled New England Heat Pump Accelerator distributor to ensure your instant discount is applied to your final invoice. This is a new program (as of March 2026), so many heat pump installers are likely not yet aware of it.
Low-Income Weatherization Assistance Program (WAP)
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This program, administered by Springfield Partners for Community Action (413-263-6500), is available for homeowners or tenants and provides free weatherization work including insulation, air sealing, replacement windows (current windows must be single-pane to qualify), weatherstripping, asbestos abatement, knob-and-tube wiring removal, free home energy audits, and a free heating system test to make sure the system is working properly (If a heating system repair is needed, this can potentially be covered through the HeartWAP program). The amount of funding available depends on the home’s needs (no min/no max). Must be on fuel assistance to qualify.
Rental Neighborhood Improvement Program
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This program is offered through OneHolyoke CDC and provides low-interest loans of up to $21,000/unit available for multi-family rental properties with low-income tenants for various building improvements.
Low-Interest Financing
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Various companies offer low-interest financing options to help with energy efficiency projects such as heat pump installations. For example, People's Bank offers an Energy Efficiency Home Equity Loan with a lower interest rate available for energy efficiency projects. Mitsubishi Diamond Contractors also offer a Mitsubishi Synchrony Financing option.
Alternative Energy Certificates
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The Massachusetts Department of Energy Resources provides the owners of qualifying whole-home heat pumps, solar hot water heaters and woody biomass (wood pellet and wood chip) systems with Alternative Energy Certificates (AECs), which can be sold to receive a financial incentive. The DOER encourages system owners to work with "Aggregators" who can submit your application and sell your AECs on your behalf, for a fee. Here is a link to a list of aggregators located on the DOER program webpage. You can use this APS Renewable Thermal AEC Calculator provided by the DOER to estimate the value of this incentive. Based on conversations with various aggregators in April 2025, the estimated value per AEC was approx. $3. Please reach out to an aggregator for more information, eligibility requirements, and estimates on the value of this incentive.
Additional Incentives
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Additional incentives that we are aware of are located on our main rebates and incenitves webpage.