Mass Save Heat Pump Rebates Explained for 2026
How much Mass Save pays for a heat pump in 2026, what whole-home and partial-home mean, how the 0% loan works, and what changes on January 1, 2027.
If you own a house in Massachusetts and have heard that heat pumps come with big rebates, you have heard right. If you have also heard three different dollar amounts, that is because the program has changed several times in a few years, and a lot of web pages are out of date.
This is a plain-English guide to what Mass Save offers for air-source heat pumps in 2026, how to work out a rebate for your house, and the change coming on January 1, 2027. The figures here come from Mass Save’s published 2026 and 2027 incentive pages. Amounts and budgets change, so check masssave.com for current numbers before you sign anything.
First, what is a heat pump?
An air-source heat pump moves heat rather than making it by burning something. In winter it pulls heat from outdoor air into your house; in summer it runs backward as an air conditioner. A single system does both jobs, which is why many homeowners use one to replace a window AC and an aging oil or gas furnace in one project.
Heat pumps are sized in “tons” of capacity. A typical Massachusetts house might need two to four tons across several indoor units, though a heat-loss calculation from a contractor is the only way to know yours.
The 2026 rebate amounts
Mass Save’s 2026 air-source heat pump rebates, per its air-source heat pump page. Equipment must be installed between January 1 and December 31, 2026, by a contractor in the Mass Save Heat Pump Installer Network, and the rebate form and paperwork must reach Mass Save by February 28, 2027.
| Rebate type | Amount | Maximum |
|---|---|---|
| Whole-home | $2,650 per ton | $8,500 |
| Partial-home | $1,125 per ton | $8,500 |
| Basic | $250 per ton | $2,500 |
Whole-home vs partial-home vs basic
In general, whole-home means the heat pumps are installed to heat the entire house as its main heating system. Partial-home means they heat part of the house while another system stays in place for the rest. Basic is the smaller rebate for homes that are not replacing fossil-fuel or electric-resistance heat, for example updating an existing heat pump or central air conditioner, or adding a unit to a space that had none. The exact qualifying rules are on masssave.com, so do not assume which tier your project lands in until your installer and Mass Save confirm it.
Working out your rebate
Take the tons installed, multiply by the per-ton rate, and see whether you hit the cap. For example:
- A 3-ton whole-home system: 3 x $2,650 = $7,950, under the $8,500 cap.
- A 4-ton whole-home system: 4 x $2,650 = $10,600, so you hit the $8,500 cap.
- A 2-ton partial-home system: 2 x $1,125 = $2,250.
These are worked examples of the formula, not quotes. Your actual rebate depends on the equipment, the installer’s documentation and Mass Save’s approval.
What changes on January 1, 2027
Mass Save’s page says that for installations on or after January 1, 2027, the whole-home rebate drops to $2,350 per ton, capped at $7,500, and the partial-home rebate drops to $1,000 per ton, capped at $7,500.
Using the same 3-ton whole-home example, that is $7,050 instead of $7,950, which is $900 less. The cap falls $1,000 for bigger systems. If you were already planning a project, the install date, not the date you signed, is what the published rule refers to, so confirm with your installer how Mass Save treats projects that straddle the new year.
Help for lower-income households
Mass Save also has income-based programs that go well beyond the standard rebates. Mass Save lists enhanced, income-based incentives of up to $16,000, or up to no cost through Turnkey services, for qualifying households. Income limits depend on household size and are set in a table on Mass Save’s enhanced rebates page, so check it or ask your utility. Mass Save also says weatherization recommended in your Home Energy Assessment generally has to be finished before you apply for the enhanced rebate. Your town’s Energy Advocate may also help with the application.
The 0% HEAT Loan
For the part the rebate does not cover, Mass Save’s HEAT Loan offers 0% interest financing. According to Mass Save, the maximum financeable amount rose to $25,000 starting January 1, 2025, with any available Mass Save incentives deducted from the project cost first. Loans are issued by participating lenders, and Mass Save’s consumer page says terms run up to seven years depending on your sponsor and lender. Mass Save also says to apply for the loan before the equipment is installed, and heat pumps must be installed by a contractor in the Heat Pump Installer Network to qualify.
What about the federal tax credit?
The federal home energy credit for heat pumps (Section 25C) does not apply to property placed in service after December 31, 2025, according to the IRS. That means 2026 projects depend more on Mass Save and any utility or local support. Check with a tax professional for your own situation.
The seasonal electric rate
Some utilities offer a lower seasonal electric rate for homes that heat with heat pumps. Eligibility and rates differ by utility and change over time, so ask your utility what applies to you.
How to start
- Book a Mass Save Home Energy Assessment. It is the usual first step and confirms what you qualify for. Mass Save may also recommend air sealing or insulation before a heat pump, which can reduce the size of the system you need.
- Get at least two or three quotes from installers that include the tonnage, the equipment, whether the system is meant to be whole-home or partial-home, and who submits the rebate paperwork.
- Ask about the electrical panel. Some houses need a panel upgrade or a new circuit. That cost is separate from the rebate and worth asking about up front.
- Use a contractor in the Mass Save Heat Pump Installer Network, which Mass Save requires for the rebate and the HEAT Loan.
- Keep the paperwork. Save the invoice, equipment model numbers and the rebate approval.
If your project also needs panel or wiring work, Aurion Electric handles electrical upgrades for Massachusetts homes.
Sources
- Mass Save: Air source heat pumpsmasssave.com
- Mass Save: Enhanced heating and cooling equipment rebatesmasssave.com
- Mass Save: 0% interest financing (HEAT Loan)masssave.com
- IRS: Energy Efficient Home Improvement Creditirs.gov
- Green Newton: Heat pump incentives for Newton residents in 2026greennewton.org
Details such as dates, hours and prices come from the sources above and can change. Check with the organizer before you go.
