Financing & Incentives

Learn more about the financial incentives available for adoption of heat pumps. A variety of federal and state programs are available to support electrification of heating, cooling, and hot water. The table below summarizes each of the available programs.

Rebates & Credits

Program Name	Description
Mass Save Partial Home Heat Pump Rebate Program	Eligible 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 listed on the Mass Save Heat Pump Qualified Product list, and must be installed by a contractor on the Mass Save Heat Pump Installer Network. Partial home systems must connect via integrated controls to the existing heating system. Learn more here.
Mass Save Whole Home Heat Pump Rebate Program	Eligible 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 listed on the Mass Save Heat Pump Qualified Product list, and must be installed by a contractor on the Mass Save Heat Pump Installer Network. Whole Home rebates require the completion of a home energy assessment and weatherization improvements recommended by the assessment. Learn more here.
Mass Save Heat Pump Water Heater Rebate Program	Eligible Technologies: Heat pump water heaters Summary: 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 (including Lowe’s and Home Depot) and installed by a licensed plumber. Learn more here.
Federal 25C and 25D Residential Energy Tax Credits	Eligible Techologies: Air source heat pumps, ground source heat pumps, heat pump water heaters, and electrical work related to home electrification projects. Summary: This federal program offers tax credits for the installation of high-efficiency heating and cooling equipment as well as heat pump water heaters, and projects related to updating electrical panels. Equipment must meet minimum performance thresholds. There is no lifetime cap for this credit. Air source heat pumps and heat pump water heaters qualify for a 30% credit subject to a $2000 per year maximum. Ground source heat pumps are eligible for a 30% credit with no cap. Electrical panel upgrades with a load capacity of at least 200 amps qualify for a 30% tax credit up to a $600 per year maximum.
Federal HOMES and HEEHRA Incentive Programs for Low to Moderate Income Homeowners	Eligible Techologies: Air source heat pumps, ground source heat pumps, heat pump water heaters, weatherization, heat pump dryers, electric cooktops, and electrical work related to home electrification projects. Summary: These federal programs offer incentives for low to moderate income households, and will be managed by the states. Details are in process for these programs, and are expected to be available in late 2023. Learn more here and here.

Financing

Program Name	Description
Mass Save HEAT Loan	Eligible 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 0% interest for 7 years up to a maximum of $50,000 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. Unless you are installing a new heat pump system, you may only receive one HEAT Loan regardless of how many home energy improvements you are making. Try to combine as many home energy improvement measures onto one loan if possible! To receive a HEAT Loan, you will need to have completed 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.

Program Name

Description

Mass Save HEAT Loan

Eligible 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 0% interest for 7 years up to a maximum of $50,000 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.

Unless you are installing a new heat pump system, you may only receive one HEAT Loan regardless of how many home energy improvements you are making. Try to combine as many home energy improvement measures onto one loan if possible!

To receive a HEAT Loan, you will need to have completed 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 partner Muirfield Mechanical.

This table reflects the base price ranges that our installer is offering as of November 2022. 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 installer will provide firm pricing and help you understand why your quote differs from the pricing summarized here and what rebates you can receive. Our installer 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	$4,500 – $6,500	Approximately 18,000 Btu/hr
Two Zones	$8,000 – $10,000	Approximately 20,000 Btu/hr
Three Zones	$12,000 – $14,000	Approximately 30,000 Btu/hr
Four Zones	$16,000 – $18,000	Approximately 36,000 Btu/hr
Five Zones	$19,000 – $21,000	Approximately 42,000 Btu/hr
Centrally Ducted – Installed Base Pricing (Including basic electrical connection to existing breaker box)	When using existing central air handler and adding heat pump heating/cooling module: $10,000 – $12,000 When removing existing central air handler and replacing with new heat pump central air handler: $15,000 – $17,000	Varies

Heat Pump Water Heater – Installed Base Pricing (includes basic electrical connection to existing breaker box):

Tank Size	Base Price Range
50 gallons	$4,800 – $5,200
65 gallons	$6,000 – $6,500
80 gallons	$6,500 – $7,000

These suggested pricing ranges do not account for the specifics of a given installation, and may vary. Financial Incentives are not included, and may be significant; please see section on Financial Incentives. To get a clear picture of what an installation in your home will cost, please sign up to receive a free proposal from our vetted installer.