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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, and a more detailed guide can be found here

Rebates & Credits

Program Name Description
Mass Save: Electric Heating and Cooling Rebate Program

Eligible technologies: Air source heat pumps

Summary: Mass Save offers a range of rebates for air source heat pumps depending on the type of system you are installing and what heating fuel you are currently using. 

Currently heating with oil or propane: You are eligible for a rebate of $1,250 per ton of Heat Pump capacity installed if you either remove your existing system or install integrated controls. If you do not choose to install integrated controls, you are eligible for a rebate of $250 per ton of Heat Pump capacity installed. 

Currently heating with electric resistance: You are eligible for a rebate of $1,250 per ton of Heat Pump capacity installed. 

Currently heating with natural gas: You are eligible for a rebate of $250 per ton of Heat Pump capacity installed. 

Mass Save: Heat Pump Water Heater Rebate Program

Eligible Technologies: Heat pump water heaters

Summary: If you are replacing an existing electric storage tank water heater or building a new home you are eligible for a one-time rebate based on the size of the heat pump water heater.

To Qualify: If you are installing a qulaified 55 gallon or smaller HPWH, you are eligible for a rebate of $600. If you are installing a qualified 55 gallon or larger HPWH you are eligible for a rebate of $150.

MassCEC Clean Heating and Cooling Program

Eligible technologies: Air Source Heat Pumps

Summary: The Massachusetts Clean Energy Center (MassCEC) offers thousands of dollars of rebates for households installing air source heat pumps as their primary, whole-home heating system. The rebate is based on the type of system you are installing, the kind of fuel you are displacing and your household's income. 

To qualify: If you are fully replacing a gas heating system, you can qualify for a $2,500 rebate.

You will also need to have completed a Mass Save Home Energy Assessment in the past four years (or that you commit to completing one within six months). Sign up for one today if you haven't already!

Income Eligibility: You can receive a larger rebate if you meet certain income eligibility (<80% or <120% of the state median income) up to $5,500 per household, click here for more information or are representing a non-profit, government, or affordable housing project.

Massachusetts Dept. of Energy Resources: Alternative Energy Certificates

Eligible technologies: Air Source Heat Pumps

Summary: Any resident who installs an air source heat pump as their only or primary source of heat is eligible to receive and sell Alternative Energy Certificates (AECs), which are awarded to owners of clean heating & cooling technologies through the Commonwealth's Alternative Portfolio Standard. 

To qualify: The number of certificates you receive will be based on a variety of criteria, including:

  1. Whether the heat pump is the sole source of heat or has a backup system
  2. How efficient the overall home is (based on HERS score or other ratings)
  3. The square footage of your home 

Depending on these factors, and the value of the AECs at quarterly auctions, you could receive between $300 - $3,700

An Excel calculator developed by the Dept. of Energy Resources is available here.

We would recommend using a conservative estimate of $5-$15/MWh or lower to represent a lower auction value of these AECs and deducting the costs needed for selling your certificates to state utilities through an aggregator of ~7-10%

Federal Energy Efficiency Tax Credit

Eligible techologies: Air Source Heat Pumps & Heat Pump Water Heaters

Summary: The federal government offers one-time rebate incentives 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. 

To Apply: Complete the Form 5695 and attach it to your tax returns. You can find more details here

 

Financing

Program Name Description
Mass Save HEAT Loan

Eligible technologies: Air Source Heat Pumps & 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.