Mass Save 2025-2027 Updates

Mass Save has been a long-lasting and successful program for the state of Massachusetts, so far. However, it is being updated in 2025 and hopefully we can answer some common questions about these changes.

What Does Mass Save Do?

Founded in 2008, Mass Save is a combined effort of both state and private sponsors. The program adds a small amount to utility bills across the state that is used to create funding for making Massachusetts energy cleaner. The program does this mainly by offering rebates on the installation of greener building practices and appliances such as Heat Pumps. While companies do use Mass Save, a large portion is used by individual residents in the state. As the program has gone on, it has shifted its focus to try to make the process easier for people with lower incomes, while never wavering from its initial goal of reducing greenhouse gas emissions and making cleaner energy available to residents of Massachusetts.

Why is Mass Save Changing?

Mass Save is designed to make Massachusetts more sustainable and typically renews its budget every three years. This is what allows them to constantly change to best achieve their goals in the most efficient way. This generally means putting higher rebates on newer and more expensive technology to allow more residents to have access, this then encourages growth in the field and allows that technology to become more mainstream, as we are seeing happen with the Heat Pump. This could also mean pulling some of that money out of helping people adopt new technology and instead helping those with lower incomes also adopt this more sustainable technology.

What is Changing for Mass Save in 2025?

This section focuses on the monetary Mass Save changes for residents of Massachusetts, not corporations or the internal workings of Mass Save.

● MassSave® $10,000 Whole-Home Rebates: If your household is above the median income for your city, and you replace your current heating system with a heat pump system, then you can receive $3,000 per 12,000 BTUs of capacity installed, up to $10,000. This is a slight change from the previous rebate which was a flat $10,000 for the whole home. 

● MassSave® Partial Home Rebate: in 2025, is $1,250 per ton (12,000 BTUs) of capacity up to $10,000. This rebate is designed to work with your existing heating system instead of replacing it. If you have a single room that needs help heating or cooling, this could be an excellent investment. The BTU capacity is a number calculated by the manufacturer of the unit being installed, so you’ll know that number before you buy the system. For 2025, it stays where it has been for the last few years, but in 2026 it drops to $1,125 per ton, and $1,000 per ton in 2027.

● Weatherization bonus: when getting a Heat Pump installed, if you got your house weatherized within six months before or after installation, Mass Save will send you an additional $500. Weatherization is things like checking the seals on windows and is a good first step if you wish to update your heating system. No point in getting a better heater if the warm air won't stay inside.

● Bonus rebates for various electronic items: This section is about smaller appliances from Washers and Dryers to battery powered chainsaws. If you get a new appliance, check the list to see if you can get some money back. Massachusetts 2025-2027 Energy Efficiency and Decarbonization Plan Here is the link to the plan and this section is located on pages 137-138.

What is Not Changing for Mass Save in 2025?

● MassSave® $16,000 Enhanced Heating and Cooling Incentive: If your household is within the median range of income for your city, then you will get a $16,000 rebate after installation. Installation costs vary depending on a variety of factors, such as the size and layout of the home. In many cases, this rebate covers much of the cost. The rebate is unchanged for 2025-2027.

● The United States Federal Government is offering a $2,000 tax credit. The credit is for 30% of the cost, up to $2,000. Most installations will qualify for the entire $2,000 Federal Tax Credit. Since this is not through Mass Save but is in the same realm as a rebate for Heat Pumps, we felt it should be included here. The tax credit is provided through the Inflation Reduction Act passed in 2022.

● Your Local Community Action Agency 100% off Income Eligible Program: If your household is below the median income for your city, then your local Community Action Agency will likely cover the cost of your Heat Pump Installation. Use this link to find your local community action agency: Home - MASSCAP.

● Weatherization and Assessment: Mass Save helps cover the cost of both the assessment of your home and the fixes needed for weatherization. This includes repairs to air seals and other commonly worn-down parts of the home that help keep the environment out of your home.

When Will the Mass Save Changes Take Effect?

With the changes being approved, these changes took effect on January 1st, 2025. These changes were discussed over the last few months and officially filed on October 31^st, 2024.

What are Mass Save’s Goals for 2025-2027

1. Reduce greenhouse gas emissions: This is achieved by increasing electrification, weatherization, and supporting greenhouse gas reductions by corporations. Mass Save is also planning to try to secure outside funding.
2. Accelerate program access for vulnerable and underserved customers: By lowering the qualifications necessary to receive rebates, increasing no-cost weatherization for low and moderate income residents, and increasing participation in the program by renters and small businesses.
3. Deliver an improved customer experience: By increasing the languages available for customer service, speeding up rebate processing time, and investing in digital improvements.
4. Strengthen and diversify the workforce: Collaborate with the Massachusetts Clean Energy Center to find a diverse range of applicants, increase supplier diversity, and increase training and availability of Heat Pump installers for both residential homes and businesses.

Is Mass Save a Scam?

No, Mass Save is not a scam. This is a program run through the state of Massachusetts and its energy utility firms such as Eversource and National Grid, with the goal of making long term energy usage more sustainable. They can get backlogged at certain times of the year, which can delay receiving the rebate, but it will come. Additionally, Mass Save had many accomplishments that they point out in this update:

●      Supporting the installation of heat pumps in over 75,000 homes and businesses since 2019.

●      Weatherizing approximately 350,000 homes.

●      Reducing greenhouse gas emissions as much as if they took 800,000 cars off the road for a year.

●      Investing $1.1 billion in improvements that lower energy bills and improve health, safety, and comfort.

Will the Mass Save Changes Impact Getting My Rebate?

No, if you registered your project prior to January 1^st 2025, you will still receive the same rebate you were expecting. Additionally, since the Heat Pump rebate changes were minimal, you likely still qualify for an identical rebate under the new terms.

If you are expecting to get a rebate from Mass Save in the first few weeks of January, there may be a slight delay. Moving directly from the holiday season into several administrative changes could create a larger backlog than normal. This should only last a few weeks at most. For questions and concerns please call Mass Save at 888-855-0340.

What Happens to Mass Save if the Inflation Reduction Act is Repealed?

This would not affect Mass Save. Mass Save does receive funding from the Inflation Reduction Act.

Where Do I start if I want a Heat Pump?

There are two options for you going forward. The first is that you do it all yourself, calling contractors and electricians, researching models, tracking all the rebates, all while your life continues. The second option is that you call Modern Energy, and we will manage the project and walk you through the process. Modern Energy reviews average 5/5 stars and we are a highly respected company within the HVACR (Heating, Ventilation, Air Conditioning, and Refrigeration) world. All our installers and electricians work in-house, and we install the best equipment from Mitsubishi, Carrier, Fujitsu, and Bryant. Plus, we have a dedicated staff to help you figure out which rebates you qualify for and how to apply for the 0% Interest Heat Loan. Let us at Modern Energy use our expertise to make your life cheaper and easier.