Incentives and Financing
Thousands of dollars in incentives and special financing options are available to support clean heating and cooling installations. Learn more about the options available to you.
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 we will be posting a more detailed guide on these options soon.
In some ways, the programs available can be more complicated than clean heating and cooling technologies are themselves! Rest assured that our installers have helped hundreds of customers through the steps needed and will work with you to make sure you have all of the information you need (and will submit whatever information on your behalf that they can!)
|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.
No incentives from Mass Save are available for other clean heating and cooling technologies, though all four technologies can be financed under a 0% interest Mass Save HEAT Loan (see below for more information).
|MassCEC Clean Heating and Cooling Program||
Eligible technologies: Ground source heat pump, modern wood heating, and solar hot water (air source heat pump coming soon!)
Summary: The Massachusetts Clean Energy Center (MassCEC) offers thousands of dollars of rebates for three of the four clean heating and cooling technologies.
Each rebate differs slightly in requirements, when the rebate application must be submitted, and who may receive the rebate, though in all cases:
|Massachusetts Dept. of Energy Resources: Alternative Energy Certificates||
Eligible technologies: All clean heating and cooling technologies.
Any resident who installs a qualifying clean heating and cooling technology 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. The number of certificates you receive will be based on a variety of criteria, including (for ASHP and GSHP) the size and efficiency of your home (e.g. if your home has a HERS rating of <50 or is a "Zero Energy" Home or Passive House) or (for modern wood heat) how much fuel you use. Depending on the technology, these factors—and the value of the AECs at quarterly auctions, you could receive the following:
An Excel calculator developed by the Dept. of Energy Resources is available here. Please note that a default AEC value of $20/MWh is assumed in this calculator. We would recommend using a more conservative estimate of $10-15/MWh 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 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.
|State Personal Income Tax Credit and Property Tax Exemption||
Eligible technologies: Solar hot water
Homeowners can claim a state tax credit of 15% of the cost of a solar hot water system up to $1,000.
Additionally, 100% of the added value of a solar hot water system is exempted from your local property taxes for up to 20 years.
|Mass Save HEAT Loan||
Eligible technologies: All clean heating and cooling technologies
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.
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.