Are you a homeowner in Massachusetts looking to upgrade your heating system while saving money? You're in luck! Massachusetts offers a range of rebates and incentives to encourage the adoption of energy-efficient heat pumps. In this guide, we'll break down the numerous rebate programs available, including federal tax credits and MassSave® rebates.

Federal Tax Credit (Inflation Reduction Act): 

Let's start with the federal tax credit, which can put a significant dent in your installation costs. Under the Inflation Reduction Act, homeowners are eligible for a tax credit worth 30% of the system price, up to $1,800. This means that if your heat pump system costs $6,000, you would receive a tax credit of $1,800, significantly reducing your out of pocket expense.

MassSave® Rebates: 

The MassSave® program offers rebates to homeowners who install qualifying energy-efficient equipment. To be eligible, customers must receive their natural gas or electricity from Eversource, National Grid, or Unitil. However many municipally owned power companies offer comparable rebates, we encourage customers in towns with municipally owned power companies to reach out to their utility directly.

MassSave Whole Home Rebates: 

If you're considering heat pumps as your new primary heating system, you could be eligible for MassSave® Whole Home Rebates. This program offers several incentives, including: 

• 0%, 7-year Heat Loan: Need financial assistance for your heat pump installation? MassSave® offers a heat loan with 0% interest over seven years, allowing you to borrow up to $50,000 for eligible upgrades. Read more about this loan here.
• The maximum amount of this loan is being reduced to $25,000 in 2025 - so customers with large homes or multiple properties should begin their projects before the end of the year!

• $16,000 Whole-Home Median Income Rebate: For households making below the median income in their city, there's the opportunity to receive a generous $16,000 rebate towards the cost of installing heat pumps as the primary heating system. To learn more about this program and the state-level income guidelines, click here.

• $10,000 Whole-Home Rebate: Even if you don't meet the income requirements for the $16,000 rebate, you could still qualify for a $10,000 rebate, making the transition to heat pumps more affordable. 

MassSave Partial Home Rebates: 

• For homeowners opting for partial upgrades, MassSave® offers rebates based on the capacity of the installed heat pump. You could receive $1,250 per ton of capacity installed, providing additional savings to offset your investment. Please note that this partial rebate cannot be combined with either of the whole-home rebates.

Navigating the Rebate Process: 

Now that you're familiar with the relevant state and federal rebates, how do you go about claiming them? The process may seem daunting but at Modern Energy we help you through every step of the process. As a trusted provider of HVAC solutions, we pride ourselves on making the transition seamless and hassle-free for our customers. Our team of experts will assist you in selecting the right heat pump system for your home and ensure that you maximize all available rebates and incentives. What's more, with our 100% upfront financing which is available for most of customers, there's no need to wait to start enjoying the benefits of energy-efficient heating. With Modern Energy by your side, you can rest easy knowing that you're making a smart investment in the comfort and sustainability of your home. 

Investing in energy-efficient heat pumps not only benefits your wallet but also contributes to a greener, more sustainable future. With generous rebates available through federal and state programs like MassSave® and the Inflation Reduction Act, there's never been a better time to make the switch. By leveraging these incentives, Massachusetts homeowners can enjoy enhanced comfort and energy savings while reducing their environmental footprint. So, why wait? Start exploring your options today and unlock savings today!