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Incentives & Financing

Learn more about the incentive and financing options available to help you with your heat pump installation, as well as the transparent standard pricing being offered through HeatSmart Hudson-Stow.

Incentives are available from Hudson Light and Power and two programs from the Massachusetts Department of Energy Resources to support the installation of air and ground source heat pumps. Several financing options, including a 0% interest loan over 7 years, are also available to help you with an installation. Read on for more information about the available programs.

Incentives

Note: You can receive incentives from all of the programs described below if your heat pump project meets the eligibility requirements.

HeatSmart Hudson-Stow is also offering additional support for low- and moderate-income households. Learn more here.

 

Program Name

Description


Hudson Light and Power

Summary: Hudson Light and Power offers an account credit of $500 for the installation of a high-efficiency heat pump. HLP has doubled this incentive to $1,000 for the first 100 HeatSmart participants.

Eligibility: All Hudson Light and Power customers that heat with any fuel type are eligible to receive this rebate. Only HeatSmart Hudson-Stow participants are eligible to receive the larger incentive. All equipment offered by our HeatSmart installers will qualify.

Learn more and download your application here: http://www.hudsonlight.com/wp-content/uploads/2019/05/HeatSmart.pdf


Home MVP Pilot Program

 

Summary: The Home Energy Market Value Performance (Home MVP) Pilot Program is a new pathway from the Dept. of Energy Resources (DOER) that provides incentives and access to financing (see below) to participating homeowners based on the level of energy reductions received. The size of the incentive is dependent on a number of factors, including how much energy you used before installing a heat pump and any energy efficiency upgrades you complete at the same time. The incentive will go directly to Boucher or Wenzel, though our installers have agreed to pass a portion of this incentive onto HeatSmart customers. Regardless of the size of incentive you receive, participating in the MVP program will give you access to 0% financing up to the cost of your project minus any incentives received.

While the size of the incentive is dependent on your specific home, DOER has provided examples of actual projects processed through the Home MVP program relevant to HeatSmart Hudson-Stow and the incentives received. View these examples here.

Eligibility: All residents of Massachusetts are eligible to participate in the MVP Program, regardless of whether you participate in HeatSmart or not. If you're interested in the MVP program, speak to Boucher when they reach out to you to schedule a site visit and they will make sure to collect all of the information needed to begin moving you through the program during your visit.


Alternative Energy Certificates (AECs)

Summary: As a clean heating and cooling (or "renewable thermal") technology, heat pumps receive certificates from the state that must be purchased by Massachusetts utilities to meet a state compliance requirement under the Alternative Portfolio Standard(If you're familiar with SRECs from solar PV, think of these as SRECs for heat pumps!)

The value of each certificate fluctuates based on supply and demand, and the number of certificates your system will receive is dependent on a number of factors, including: (1) size of your home, (2) the efficiency of your home (e.g. HERS Rating of <50), and (3) whether the heat pump system serves as your sole source of heat or not.

Eligibility: All residents of Massachusetts who install qualifying heat pump systems can register them under the APS. For your system to qualify, it must serve at least 90% of the heating load of your home, with 50% more certificates awarded if your system serves as your sole source of heating with no backup

Federal Investment Tax Credit

Eligible technologies: Ground source heat pump or solar hot water

Homeowners can claim a federal tax credit of up to 30% of the cost of a solar hot water or ground source heat pump system (excluding cost of ductwork modifications). The tax credit which is similar to that offered for solar electricity will decline to 26% in 2020 and every year after that until disappearing entirely in 2022. If you are unable to claim the full credit in a year, you may roll it over into a future year while the credit is still available.

Consult a tax professional if you have any questions or concerns.

Grant for Low and Moderate Income Homeowners

HeatSmart Hudson-Stow is providing a grant of $300 to the first 10 income-eligible families that sign a contract through HeatSmart Hudson-Stow. Read more about HeatSmart Hudson-Stow's additional support and eligibility here.

 

Financing

 

Program Name

Description


Home MVP Pilot Program

Summary: Homeowners that participate in the Home MVP Pilot Program (discussed above) can receive financing for heat pump systems and other eligible energy efficiency upgrades. This loan, supported by the Dept. of Energy Resources and offered by a select number of local lenders is offered at 0% interest over 7 years. The maximum amount that can be financed under this loan is the lesser of $25,000 or the value of all eligible improvements minus the cost of any incentives received.

Eligibility: All residents of Massachusetts are eligible to participate in the MVP Program. A variety of energy efficiency improvements beyond heat pumps are eligible to be financed under this loan with the exception of anything related to fossil fuel equipment. If you're interested in the MVP program, speak to Boucher when they reach out to you to schedule a site visit!

 

Our installers, Boucher and Bill Wenzel, have helped homeowners submit hundreds of rebates over the years. They will make sure you understand how much you could receive when providing you a quote and will help you with submitting any paperwork necessary.

If you have any questions or concerns, we encourage you to reach out to the HeatSmart Hudson-Stow coaches at info@HeatSmartHS.org.

 

Pricing

Our selected installers for HeatSmart Hudson-Stow have agreed to provide transparent, standardized pricing to HeatSmart customers that is discounted from their typical offerings. The detailed pricing guide for HeatSmart Hudson-Stow can be found here.

Please note that while best efforts have been made to standardize the pricing provided to customers, each home is different, and each system must be customized for the needs of your home to ensure it performs well. It is likely that most homes will need adders of some sort, which could add 5-15+% to the cost of your system. If you have any questions about the pricing described, please don't hesitate to discuss with one of our installers when they reach out/come by for a site visit or reach out to our coaches.