What incentives and rebates are available to me?
As a renewable energy technology, ground source heat pumps are eligible for various incentives and financing options in the state of Massachusetts.
The state of Massachusetts provides numerous incentives and rebates for air source heat pumps. All cost calculations made on the WePowr website incorporate the most up-to-date information on available financial incentives.
Massachusetts Clean Energy Center: Clean Heating and Cooling Program
The Massachusetts Clean Energy Center (MassCEC) provides rebates for GSHPs through its Clean Heating and Cooling program. In order to receive the rebate, GSHP systems must meet a number of performance requirements, and the installer must be a licensed contractor and/or plumber and be accredited with the International Ground-Source Heat Pump Association (IGSHPA).
| Closed Loop (Water-to-Air) | Closed Loop (Water-to-Water) | Open Loop (Water-to-Air) | Open Loop (Water-to-Water) | |
|---|---|---|---|---|
| Minimum COP | 3.6 | 3.1 | 4.1 | 3.5 |
| Base Rebate (per 12,000 BTU/hr) | $1,500 | $1,500 | $1,500 | $1,500 |
| Efficiency Adder (per 1.0 COP above Minimum COP | $1,000 | $500 | $1,000 | $500 |
| Maximum Rebate (per 12,000 BTU/hr) | $2,500 | $2,000 | $2,500 | $2,000 |
| Maximum Total Rebate (per system | $12,500 | $10,000 | $12,500 | $10,000 |
To be eligible for the rebate, homeowners must either be electric customers of National Grid, Eversource, Unitil, or an eligible municipal lighting plant (Ashburnham, Holden, Holyoke, Russell, Templeton) or use electric resistance heat. Eligible homeowners must also have received a home energy audit within the last two years or have one scheduled within six months of their GSHP installation (free energy audits are available through Mass Save here to eligible customers).
If you are eligible for the rebate, installers working with WePowr will always install an GSHP eligible for the MassCEC rebate and help you to obtain your rebate unless a particular ineligible system is a perfect fit for your home. Many of them may also be certified to conduct a free Mass Save energy audits on your home.
The average rebate received by Massachusetts homeowners in the first half of 2015 was approx. $8,000.
More information about what systems are eligible and how the rebate is awarded is available here. Additional information about MassCEC GSHP program is available here.
Federal Residential Renewable Energy Tax Credit
The federal government allows you to claim a credit of 30% of all of your ground source heat pump system's installed costs. If the tax credit exceeds your tax liability, you will be able to carry it forward to the next year. Note however that this tax credit is expiring at the end of 2016, and it is currently unclear whether unused tax credits will be able to be carried forward after 2016.
The IRS Form 5695 and instructions on filling it out can be found here.
Mass Save: HEAT Loan Program
Mass Save provides 0% interest loans of up to $25,000 with terms of up to 7 years for various renewable energy and energy efficiency improvements, including ground source heat pumps. You may be eligible for a HEAT Loan if you are an electric customer of National Grid, Eversource, Cape Light Compact, or Unitil, or if you are a gas customer of Liberty Utilities or Columbia Gas. Learn more about how to apply for heat loan program financing here.