Massachusetts offers rebates for the installation of small-scale, high-efficiency, cold-climate air-source heat pumps (ASHPs) in residential, commercial, public, and non-profit buildings.

Project sites must be located in a utility territory that contributes to the Renewable Energy Trust Fund (National Grid, Eversource, Unitil, and municipal light plants that have agreed to pay into the fund). Alternatively, the project may be located in the territory of a municipal light plant that does not pay into the fund if the project will be replacing an existing (non-ASHP) electric heating system.

Rebate amount varies by type and size of project. Rebate amounts are as follows:

Residential:

• Single-Head System: $625 per system (3 system maximum)
• Single-Head System (120% state median income): $800 per system (3 system maximum)
• Single-Head System (80% state median income): $1,500 per system (3 system maximum)
• Central or Multi-Head System: $625 per 12,000 BTU/hr, up to $2,500
• Central or Multi-Head System (120% of state median income): $800 per 12,000 BTU/hr, up to $3,200
• Central or Multi-Head System (80% of state median income): $1,500 per 12,000 BTU/hr, up to $6,000

Small-Scale Non-Residential Entities:

• Single-Head System: $625 per system (20 system maximum)
• Single-Head System (Public-Non-Profit): $800 per system (20 system maximum)
• Single-Head System (Affordable Housing): $1,500 per system (20 system maximum)
• Central or Multi-Head System: $625 per 12,000 BTU/hr, up to $12,500
• Central or Multi-Head System (Public/Non-Profit): $800 per 12,000 BTU/hr, up to $16,000
• Central or Multi-Head System (Affordable Housing): $1,500 per 12,000 BTU/hr, up to $30,000

An individual project system owner may not be awarded more than $500,000 in total awards through this program and the commercial-scale ASHP program in a fiscal year.

A complete list of equipment eligibility requirements is available in the Program Manual. Cooling only units and single-stage heat pumps are not eligible from rebates under this program. 

After a project is completed, rebate applications and other required documents may be submitted via email. Applications must be submitted before the program deadline and within 60 days of project completion. For application details, see the Program Manual.