Whole-Home Heat Pump Program

Air source heat pumps (ASHPs) heat and cool your home with one efficient system, including ductless mini-splits and ducted systems. Through HG&E's Whole-Home Heat Pump Program, you can get up to $3,000+ in rebates and up to $15,000+ at 0% interest when you convert from gas, oil or propane to heat pumps as your primary heating system.

New to heat pumps? Read how they work, what they cost to run compared with other fuels, and how to find an installer on our heat pump education page.

Installing just one or two units? You may qualify for our basic heat pump rebate instead: $250 per ton, up to $1,000.

Want to use a heat pump as your only heat source? If so, the system has to be correctly sized and designed for your home. The heat pump system requirements for this program are here to help ensure you install a system that keeps you comfortable throughout the heating season.  

PROGRAM INCENTIVES: 

Rebate amounts are summarized here. See the notes under the table and the full terms below. 

Incentive

Amount

details

ASHP Rebate, Tier 1*

(keep existing heating system)

$600/ton

Maximum Rebate: $2,400 for single-family homes. Multi-family: $1,200 per unit, up to $8,000 per building/parcel.

ASHP Rebate, Tier 2*

(must decommission existing heating system)

 

$750/ton

 Maximum Rebate: $3,000 for single-family homes. Multi-family: $1,500 per unit, up to $10,000 per building/parcel. 

weatherization rebate adder

75% of cost

For any insulation, air sealing and/or duct sealing recommended in your energy audit.

Maximum rebate: $3,000 for single-family homes. Multi-family: $1,500 per unit, up to $6,000 per building/parcel. 

energy assistance program**

0% interest financial assistance

Request this 0% financing on your Whole-Home Heat Pump Program application. For terms and eligibility, see the Residential Energy Assistance Program page (properties with 4 units or less) or the Commercial Energy Assistance Program page (5 or more units).

mlp z-loan

0% interest, up to $25,000

Finances eligible upgrades, including heat pumps and mini-splits, hot water heaters, insulation and weatherization barriers, with a 5-year repayment term. An energy audit completed within the past two years is required. Once approved, you receive a two-party check before work begins and sign it over to your contractor after the project is finished. Click here for more information. 

additional incentives

Other companies and organizations offer additional heat pump and weatherization incentives. Those we know of are listed under "Additional Non-HG&E Programs" on the main rebates and incentives webpage. 

*Rebate based on ASHP maximum heating capacity at 5°F up to 120% of the building's heating design load. (1 Ton = 12,000 BTUs). (Example: if the ASHP's maximum capacity at 5°F is 150,000 BTU/hr, but the building's heating design load is only 120,000 BTU/hr, rebate is based on 144,000 BTU/hr). If the heat pump is not sized for at least 100% of the home's heating load, the rebate is prorated. Example: a system sized for 65% of the load receives 65% of the original rebate amount.

Customers who receive the Tier 1 rebate can receive the difference between Tier 1 and Tier 2 (an extra $150/ton) if the existing heating system is removed within 2 years after the ASHP system is installed (proof of removal required).

**To receive assistance through the Energy Assistance Program, you must follow the program's terms and conditions, which include having an account in good standing with HG&E (6- 12 month history of satisfactory payments) and no municipal tax liens on the property. Homeowners with no prior HG&E billing history may submit a letter of credit from their previous utility provider. There is a $100 administrative fee for this program. 

Quick steps

  1. Get a free home energy audit (before you install).
  2. Weatherize if recommended.
  3. Collect installer proposals.
  4. Submit your application before installing.
  5. Have the work completed.
  6. Your contractor submits the post-installation form.
  7. Receive your check about 3 weeks later.
Details for each step are below.

How to apply

Review the eligibility criteria, terms and conditions, and the step-by-step process below before you submit your application and before you install your new heat pump system, so you know how the program works and that you will qualify.

 

Eligibility Criteria, Terms and Conditions

1. Each ASHP Unit Must:

2. The Entire ASHP System Must:

  • ASHP system (including any electric resistance elements) must be sized to provide 100%-120% of heating load within the entire conditioned/living space at the installation address*.
    • *Exceptions may be made on a case-by-case basis for systems that are sized for >120% of the building heating load, pending additional justification/explanation from the installer. However, rebate is capped at 120% of the building heating load.
    • *Single-head systems: May be rounded up to the next available size due to product availability.
  • 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 an ACCA-approved room-by-room Manual J heat load calculation (Manual J design temperature of 0 degrees F per Energy Star recommendations). (If pre-existing duct system will be maintained, block load Manual J may be used).
  • 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

Customer and Building Requirements, terms and conditions: 

  • 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. (Please note: Southampton customers who only receive gas service through HG&E are not eligible and should seek funding through the MassSave program as heat pumps use electricity to operate.)
  • Applicant must own the building where the heat pump system will be installed. (Assistance is not granted to tenants renting or leasing the property.) 
  • 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).
  • Customer must have received home energy audit within past 3 years and before the heat pump system is installed.
    • *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. Qualified equipment must be purchased within the given program year and applications must be submitted by March 31st of the following year.
  • 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. Note: Customer may receive the higher Tier 2 rebate that was available at time of application if customer decommissions previous heating system within one year of installing heat pump system. 
    • *Gas-Conversion Projects Only:
      •  Gas System Decommissioning:
          • If a gas heating system is being decommissioned (i.e. the gas heating connection pipe is cut and capped), the connection must be cut and capped by a Massachusetts licensed gas plumber, and the plumber must have valid gas permit for the project in accordance with 248 CMR 3.00 regulations. Natural gas will no longer be available for heating load at the installation address after decommissioning a gas heating system. Load transfer to other appliances subject to review and approval by HG&E.
          • Note: In order to receive the higher Tier 2 rebate, customer must have gas heating system decommissioned.
      • 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 within 6 months of installing a qualifying whole-home heat pump system or within the same calendar year. 
    • 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.
  • 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. Gas service may be terminated for violation of any Program eligibility requirements.
  • 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.
  • If it is found that the heat pump system installed through this program is not being used as the primary heating system, HG&E will apply a charge to the customer's account that is equal to the difference between HG&E's Whole-Home Heat Pump Program rebate and HG&E's Basic Heat Pump Rebate of $250/ton up to $1,000. 
  • 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.

STEP BY STEP APPLICATION PROCESS

Visit our heat pump and mini-split education webpage to learn how these systems work, how to shop for an installer, and what efficiency ratings mean (for example, HSPF is the system's heating efficiency).

Review the eligibility criteria above. If you want 0% interest financial assistance, review that program's terms too: 

Other organizations, such as Mitsubishi, OneHolyoke CDC and the Massachusetts Clean Energy Center, offer additional incentives. See our heat pump incentives page and review the requirements for any you want.

To arrange a free home energy audit, call our energy services partner NextZero at 1-888-333-7525. (You must enter the "1" at the beginning of the phone number.)

A professional energy advisor will assess your home, recommend ways to reduce your energy bills (such as insulating and air sealing), and estimate your heating savings from heat pumps. Here is a link to more information on the home energy audit service.

To participate in this program, you need an audit within the past 3 years and before the heat pump system is installed. Customers who heat with oil or propane must give the auditor the past year of fuel-use data (for example, gallons purchased or used).

Weatherizing before installing can lower your annual heating costs and may reduce the size and cost of the heat pump you need. Therefore, it is recommended that you consider getting a quote from a licensed weatherization contractor for each of the weatherization recommendations listed on your home energy audit report and have this work completed before you install your heat pumps. If you reach out to a weatherization contractor, be sure to provide them with a copy of your energy audit report so they can see the details related to the weatherization recommendations.

Weatherization rebate: 75% of cost. Maximum $3,000 for single-family homes; multi-family $1,500 per unit and $6,000 per building/parcel. Work must be completed within 6 months of installing a qualifying system or within the same calendar year.

Consider getting proposals from at least 3 different installers, since installation costs can vary by thousands of dollars from company to company. Provide installers with a copy of your home energy audit so they can review your home’s weatherization levels, which will help them appropriately size your system. Send installers a link to this webpage so they know the program requirements. Also, be sure to talk to your contractor about your preferred temperature settings in the winter to help ensure the system is properly sized for your needs.

If you are interested in receiving any of the additional incentives available for heat pumps be sure that the system you are installing meets any program-specific requirements.

If you are having weatherization work done: tell your heat pump installer what work is being done so they can adjust the system size in the proposal.

Finding an Installer: Be sure your installer has experience installing heat pump systems as they are a more complex technology than conventional heating and cooling systems. This program requires installers to have a manufacturer's training certificate from the past 5 years. Mitsubishi Diamond Contractors should all have one, so they can be a good place to start (find them at Mitsubishicomfort.com/find-a-contractor by entering your zip code). You can also search for "HVAC installers near Holyoke" or "mini-split installers," or ask friends and family.

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.

Compare quotes by system size, price, number of indoor units and, if you like, HSPF rating (the higher the HSPF, the more efficient the system).

Through HG&E's Connected Homes Program, customers with heat pumps connected to an eligible thermostat or control receive a $5–$8/month incentive for allowing remote temperature adjustment a few times a month.

Once you have chosen a proposal, submit the application before installing to make sure that you meet the program requirements. If you would like 0% interest financing through the Residential Energy Assistance Program, you can request it in the same application.

Be prepared to submit:
• Heat pump proposal which includes:
     o AHRI # for each heat pump system being installed
     o Size of any electric resistance or strip heat (if applicable)
•  Copy of your Manual J (from your installer)
• Weatherization proposal (if applicable)
• Copy of your home energy audit report

For Customers requesting HG&E's 0% interest financing:
• Submit a copy of your deed (Holyoke residents can search for deeds on this hampdendeeds.com webpage.
• There is a $100 administrative fee to receive HG&E's 0% interest financing

Complete any weatherization recommendations you chose, then have your heat pump or mini-split system installed.

After the work has been completed, your contractor must submit a whole-home heat pump program post-installation form.

For the weatherization adder, your weatherization contractor must also complete the weatherization post-installation form.

HG&E mails you a check for your ASHP rebate, weatherization rebate and Energy Assistance Program assistance (if applicable) about three weeks after installation and receipt of all required paperwork. You are responsible for paying your installer(s), so review payment terms and due dates with them.

questions?

If you have any questions about this program, please reach out to efficiency@hged.com or by phone at 413-536-9382.

Questions?

Contact: efficiency@hged.com