Heating System Rebates Incentives 2025

Rebates and Incentives 2025

Heating and Cooling Equipment

Significant rebates and incentives are available to Massachusetts residents for heating and cooling equipment in 2025.

In addition Mass Save has a Heat Loan program where eligible homeowners can receive interest free financing up to $50,000 for energy efficient home upgrades.

But wait, there is more.

The first step for any and all Massachusetts homeowners should be to schedule a free Home Energy Assessment. The no cost Home Energy Assessment only takes about 2 hours. During which an Energy Specialist will assess your home’s current energy use and install energy-saving products at no cost!

Mass Save® Program

Mass Save is a state-wide initiative offering incentives for energy-efficient heating and cooling systems. Homeowners can access rebates for upgrading their HVAC systems to more energy-efficient models, such as heat pumps and high-efficiency furnaces.

• Heat Pumps
  • Homeowners can receive up to $10,000 in rebates for installing air-source heat pumps or mini-split heat pump systems. This can vary based on the system’s efficiency, size, and type.
• Central AC Systems
  • Rebates for central air conditioning units can be up to $500 for a qualifying high-efficiency system.
• Oil, Gas, Or Propane Systems
  • Rebates for replacing old, inefficient systems may range from $500 to $1,000, depending on the equipment and efficiency rating.

Federal Tax Credit

The federal government offers tax incentives for energy-efficient home improvements, including heating and cooling equipment, under the Inflation Reduction Act.

• Residential Clean Energy Credit
  • This includes a tax credit for the installation of heat pumps, which are considered a clean energy source. The credit can be up to 30% of the cost, including installation, for systems installed through 2032.
• Energy-Efficient Home Improvement Credit
  • This provides a 30% tax credit (up to a maximum of $1,200 annually) for certain energy-efficient upgrades, including heat pumps, central air conditioners, and other improvements.

State Specific Incentives

• Massachusetts Clean Energy Center Incentives
  • Through various programs, MassCEC offers rebates for air-source heat pumps and other energy-efficient heating systems. Homeowners can receive rebates for air-source heat pump installations as part of the “MassCEC Heat Pump Rebate Program.”
  • While not directly related to heating and cooling systems, Massachusetts also offers rebates for solar thermal water heating, which can reduce energy costs for heating water.

Low Income Programs

Massachusetts has additional support for low-income residents, including:

• Income Eligible Heating and Cooling Program
  • Offers deeper rebates for income-qualified homeowners who install energy-efficient HVAC systems.

Energy Efficiency Financing

Some programs provide financing for the upfront cost of energy-efficient systems, including heat pumps, to make the transition more affordable. For example:

• Mass Save 0% Financing
  • Offers 0% interest loans for qualifying homeowners to install energy-efficient heating and cooling systems.

How to Take Advantage of These Resources

• Mass Save
  • Homeowners must schedule an energy assessment, which is free, to see what rebates and incentives are available for them.
• Federal Tax Credit
  • Tax credits are claimed when filing your federal income taxes, so be sure to consult with a tax professional about the eligible upgrades and how to apply them.

If you’re planning to make any upgrades, it’s a good idea to start with a free energy audit from Mass Save and explore both the state and federal options.

A licensed contractor is required to move forward with upgrades. As a member of the the Mass Save Heat Pump Installers Network and a Mitsubishi Diamond Contractor Absolute Precision Plumbing Heating & Cooling would be an excellent choice.

Our primary service area includes:
Andover, North Andover, Boxford, Topsfield, Middleton, Danvers, Beverly, Peabody, Lynnfield, North Reading, Reading, Wilmington, Tewksbury, Wakefield, Melrose, Stoneham, Woburn, Winchester, Medford, Malden, and Saugus.