The Mass Save program — run by Massachusetts' electric and gas utilities including Eversource, National Grid, Unitil, and others — offers the most generous residential heat pump rebate program in the United States. As of 2025, MA homeowners can receive up to $10,000 in rebates for qualifying cold-climate heat pump installations, plus access to the 0% HEAT Loan for the remaining balance.
How Much Can You Get?
Mass Save heat pump rebates are based on the type of heat pump and what it replaces:
- Mini-split heat pump (replacing electric resistance or no cooling): Up to $1,250 per zone, maximum 4 zones ($5,000)
- Central ducted heat pump (replacing oil or propane): Up to $10,000 for whole-home replacement of fossil fuel heating
- Air-to-water heat pump (replacing oil or gas boiler): Up to $10,000
- Cold-climate specification: Heat pump must meet Mass Save cold-climate specifications — rated to operate efficiently at -13°F or colder
The HEAT Loan: The Mass Save HEAT Loan (Heat Efficiency Affordability Transfer) provides 0% interest financing for up to $50,000 for qualifying efficiency improvements including heat pumps, insulation, and weatherization. Combined with the rebate, most MA homeowners can switch from oil heat to a heat pump with very little upfront cost.
Federal 25C Tax Credit on Top of Mass Save
The Mass Save rebate stacks with the federal 25C tax credit (Inflation Reduction Act) of up to $2,000 for qualifying heat pump installations. The 25C credit is calculated on the cost after rebates in most interpretations — consult your tax advisor. Combined, these incentives can offset $12,000 or more of a heat pump installation cost.
Why Oil-to-Heat-Pump Makes Sense in Massachusetts
Massachusetts has the highest percentage of oil-heated homes of any major population center in the US — approximately 30% of MA homes still use heating oil. With oil prices frequently exceeding $4.00/gallon and cold-climate heat pumps delivering 200–350% efficiency (2–3.5 BTUs of heat per BTU of electricity consumed), the operating cost savings are significant.
A typical MA home using 800–1,200 gallons of oil per year at $4.25/gallon spends $3,400–$5,100 on heating annually. An equivalent heat pump installation in much of MA would cost $1,500–$2,500 per year in electricity — a 40–60% savings per year.
How to Apply for Mass Save Rebates
- Call Mass Save (1-866-527-7683) or go to masssave.com to schedule a free home energy assessment
- The assessment identifies qualifying improvements and provides a roadmap
- Get quotes from Mass Save participating contractors (required for rebate eligibility)
- Have the heat pump installed by a participating contractor
- Rebate is typically applied directly at point of sale or submitted by the contractor
Do I need to use a Mass Save participating contractor?
Yes — rebates are only available through Mass Save participating contractors. The Mass Save website maintains a searchable database of participating contractors by service area and equipment type.
Can I get Mass Save rebates if I have a gas furnace?
Yes — Mass Save also offers rebates for gas-to-heat-pump conversions, though the rebate levels may differ from oil-to-heat-pump. Gas customers of Eversource, National Grid, and other Mass Save utilities are eligible. Contact Mass Save to confirm current rebate levels for your fuel type.
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