Electrifying your home heating and cooling system with a heat pump is one of the most effective ways to heat and cool your house and reduce your overall carbon footprint. An ideal time to consider a heat pump is when you need to replace your existing heating or cooling system or when you want to add air conditioning.
There are several federal and state incentive programs to sweeten the deal (check the Deep Dive Tab for more info).
In order to qualify for the state MassSave incentives, you must get a MassSave free home energy assessment and add the maximum insulation to your home and significantly reduce drafts. You can get a no-cost Home Energy Assessment through MassSave which can then assist with insulation options.
There are two types of heat pumps:
Air source heat pumps. They can be ductless (also called mini-splits) or use a house’s duct system.
- Learn more about air source heat pumps: Mass Save and HeatSmart Alliance
- Watch a presentation by the Heatsmart Alliance on the Harvard Climate Initiative website
Ground source heat pumps, also known as geothermal. These are larger than air source systems and can be initially more costly but have a long lifespa and thus can be less expensive in the long term.
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- Learn more about ground source heat pumps at Massachusetts Green Energy Center
- Watch a presentation by the Heatsmart Alliance at Harvard Climate Initiative website
Financial Incentives
Air source heat pumps and mini-splits:
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- State and Federal Incentives
- 30% federal tax credit for equipment and installation costs starting in 2023 with a limit of $2,000 per year. Electrically heated homes are NOT ELIGIBLE. Subject to a $14,000 HEERA cap (includes weatherization and heating equipment). Pair with a 30% federal tax credit for electric system upgrades with a cap of $600. Estimate your savings via this calculator from Rewiring America.
- 2022 Mass Save incentives are up to $10,000 for a whole home conversion from a non-gas heating system. Or, $1,250 per ton for a partial conversion capped at $10,000. Households may be eligible for enhanced incentives based upon their annual income. Incentives subject to change.
- How the Mass Save rebates and federal tax credits may be combined remains to be determined.
- Heat pumps are eligible for a 0% Mass Save Heat Loan.
- Additional information:
- Savings calculator from Rewiring America
- https://www.nrdc.org/stories/consumer-guide-inflation-reduction-act
Ground source heat pumps (also known as geothermal):
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- State and Federal Incentives
- 30% federal tax credit for equipment and installation costs starting in 2023. Estimate your savings via this calculator from Rewiring America.
- 2022 Mass Save incentives are up to $15,000 for a whole home conversion from a non-gas heating system. Or, $2,000 per ton for a partial conversion capped at $15,000. Households may be eligible for enhanced incentives based upon their annual income. Incentives subject to change.
- How the Mass Save rebates and federal tax credits may be combined remains to be determined.
- Additional Information:
- Savings calculator from Rewiring America
- https://www.nrdc.org/stories/consumer-guide-inflation-reduction-act




