Residential & Small-Scale Ground-Source Heat Pump Program

Program Residential & Small-Scale Ground-Source Heat Pump Program
Category Financial Incentive
Implementing sector State
Last Update
State Massachusetts
Administrator Massachusetts Clean Energy Center
Budget $30 million through 2020 (Entire Clean Heating & Cooling Program)
Sectors Residential

Massachusetts offers rebates for the installation of new, small-scale high-efficiency ground-source heat pumps (GSHPs) in residential, multi-family, commercial, institutional, and non-profit buildings. 

Project sites must be located in a utility territory that contributes to the Renewable Energy Trust Fund (National Grid, Eversource, Unitil, and municipal light plants that have agreed to pay into the fund). Project sites must also be occupied year-round.

Rebate amount varies by the size of the system(s) installed. Efficiency adders are available and are based on the system's Coefficient of Performance (COP). Adders based on income and customer type are also available. Rebate amounts and adders are as follows:

Base Rebate  = $1,500 per heating ton (12,000 BTU/hr) 

Efficiency Adder = $1,000 per ton for every 1.0 COP rating above the Minimum COP for the system

Income-Based Adder = $1,500 per ton for owners with household incomes less than 80% of the state median income or $1,000 per ton for owners with household incomes between 80% and 120% of the state median income.

Public/Non-Profit Adder = $750 per ton (Note: Third-party-owned projects are not eligible for this adder)

Affordable Housing Adder = $1,000 per ton

Rebates are limited to the first five tons of heating capacity per housing unit for residential buildings and to the first ten tons of heating capacity for non-residential buildings. The maximum rebate for a residential system is $12,500 plus any income-based adder. The maximum rebate for non-residential and multi-family residential projects is $25,000 plus any public/non-profit or income-based adder.

Rebates for retrofit installations are also available and are equal to total eligible costs multiplied by the applicable percentage, based on project type. Percentages are located in the Program Manual, along with rebate caps by project type.

Individual project system owners may not be awarded more than $100,000 in total awards in a fiscal year. Applications must be submitted and approved before installation begins. Complete application details can be found in the Program Manual and on the program website.

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