Financing & Incentives

Learn more about the special pricing and incentives available through HeatSmart Newton.  A variety of programs from the state and utilities are available to support clean heating and cooling installations. The table below summarizes each of the available programs.

Rebates & Credits

Program NameDescription
Mass Save Electric Heating and Cooling Rebate ProgramEligible Technologies: Air source heat pumps, ground source heat pumps

Summary: Receive an incentive of $1,250 per ton of heat pump capacity for “partial home” heat pump installations (installations that supplement an existing heating system). A typical Newton home uses just over 3 tons of heating.

To Qualify: Heat pumps must be displacing heat previously generated by a fossil fuel or electric resistance heating system. Equipment must be meant for cold climates and be listed on the Mass Save Heat Pump Qualified Product list. Partial home systems must connect via integrated controls to the existing heating system.
Mass Save Whole Home Heat Pump Rebate ProgramEligible Technologies: Air source heat pumps, ground source heat pumps

Summary: Receive a rebate of $10,000 for air source heat pumps or $15,000 for ground source heat pumps that serve as the sole source of heating in the home.

To Qualify: Heat pumps must be displacing heat previously generated by a fossil fuel or electric resistance heating system. Equipment must be meant for cold climates and be listed on the Mass Save Heat Pump Qualified Product list. Whole Home rebates require the completion of a home energy assessment and weatherization improvements recommended by the assessment.
Mass Save Heat Pump Water Heater Rebate ProgramEligible Technologies: Heat pump water heaters

Summary: In early 2022, Mass Save added the replacement of natural gas units to the existing list of eligible items. Now, if you are replacing a natural gas, electric, oil, or propane storage tank water heater; or if you are building a new home, you are eligible for $750 in instant savings.

To Qualify: The heat pump water heater must be purchased from a participating distributor and installed by a licensed plumber.
Federal Tax Residential Energy Credit (Form 5995)Eligible Techologies: Air source heat pumps, ground source heat pumps, and heat pump water heaters

Summary: The federal government offers one-time tax credits for the installation of high-efficiency heating and cooling equipment as well as heat pump water heaters. Equipment must meet minimum performance thresholds to apply. There is a $500 lifetime cap for this credit.

To Apply: Complete Form 5695 and attach it to your tax returns. You can find more details here. The credit expired in 2021 and will not be available for 2022 unless renewed by Congress.

Financing

Program NameDescription
Mass Save HEAT LoanEligible technologies: Air source heat pumps and heat pump water heaters

Clean heating and cooling technologies can be financed by the Mass Save HEAT Loan, which is offered at a maximum of $25,000 at 0% interest for terms of up to 7 years through over 90 banks and credit unions. Learn more about the HEAT Loan and participating lenders here.

To Qualify: Mass Save HEAT Loans can be used on a variety of projects and come with several specific requirements:


  • You may finance any number of eligible energy improvements—including air sealing, insulation, hot water upgrades, and more—on a single HEAT Loan.

  • You may only receive one HEAT Loan regardless of how many Home Energy Assessments or energy improvements you are seeking to make. Try to combine as many home energy improvement measures onto one loan if possible!

  • To receive a HEAT Loan, you will need to have received a Home Energy Assessment within the last two years.


Note: While all technologies are eligible, certain configurations or equipment models may be ineligible for the HEAT Loan. Speak to your installer if you have any questions or concerns.

Pricing

HeatSmart Newton provides transparent, competitive pricing for air source heat pumps (ASHP) and heat pump water heaters (HPWH) through its vetted partners Muirfield Mechanical and New England Ductless.

This table reflects the base price ranges that our installers are offering. Every home in Newton is different, and a wide range of factors could increase the cost of your installation, from more complex piping arrangements to electrical upgrades to ductwork modifications to enhanced features and aesthetics and more. Our installers will provide firm pricing and help you understand why your quote(s) differ from the pricing summarized here and what rebates you can receive. Our installers will also help you apply for rebates and register warranties for your equipment.

Air Source Heat Pump Base Pricing

Number of Indoor Units Base Price Range Heating Capacity Range
One Zone $4,250 – $5,300 8,700 – 23,700 Btu/hr
Two Zones $7,500 – $9,000 22,000 – 25,000 Btu/hr
Three Zones $8,200 – $10,500 25,000 – 28,600 Btu/hr
Four Zones $13,300 – $16,500 41,000 – 45,000 Btu/hr
Five Zones $15,400 – $17,500 45,000 – 48,000 Btu/hr
Centrally Ducted $10,000 – $14,000 Varies

Heat Pump Water Heater Base Pricing

Tank Size Base Price Range
50 gallons $3,300 – $4,700
65 gallons $3,700 – $5,600
80 gallons $4,000 – $5,950

These best-case-scenario prices do not account for the specifics of a given installation, nor do they account for the incentives discussed above. To get a clear picture of how much an installation in your home will cost, sign up to receive a site assessment with one of our vetted installers.

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