What is a Heat Pump and When Should You Make the Switch?

December 17, 2025

Heat pumps are gaining more popularity as an energy efficient solution that meets your heating and cooling needs while significantly cutting carbon emissions.

But is now the right time for you to make the switch? Our guide below breaks down how heat pumps work, when it makes sense to upgrade, and how you can save with heat pump rebates and financing available through the Sponsors of Mass Save.

What is a heat pump?

Let’s start with the basics. A heat pump is a highly efficient heating and cooling system that uses electricity to move heat from one place to another, instead of generating it. In the winter, it pulls heat from outside your home and transfers it inside to warm your home. In the summer, it works in reverse, removing heat from indoors to keep you cool. Because heat pumps move heat rather than produce it, they’re more energy efficient than traditional systems like boilers and furnaces.

How do they work?

Heat pumps use the same basic technology as air conditioners but include a reversing valve to allow the system to also provide heat. Depending on the system, the heat is sourced from the air, ground, or water. You might be wondering, if the heat is coming from outside, how can an air source or ground source heat pump warm your home on a cold day? Even in freezing temperatures, there’s still heat energy in the air or ground. Heat pumps are designed to extract that available heat and concentrate it to keep your home warm, even when it’s chilly outside.

What are the different types of heat pumps…and how do they work?

  • Air Source Heat Pumps: Air source heat pumps extract heat from the air outside and distribute it inside your home. During warmer months, this process is reversed to provide cooling.
  • Ground Source Heat Pumps: Ground source heat pumps extract heat from the ground during cold weather and distribute it throughout your home. During warmer months, this process is reversed to provide cooling.
  • Air to Water Heat Pumps: Air to water heat pumps use the same concept as an air source heat pump for drawing out heat from the outdoor air. The difference is it delivers the heat via water piped through a home (rather than hot air).

What should I know about a heat pump? (That I may not already)

There are plenty of myths surrounding heat pumps and we’re here to set the record straight.

  • Myth: Heat pumps don’t work in cold climates
  • Fact: Heat pumps rated for cold-climates are designed for winters in New England and can work in temperatures as low as -15°F when properly installed by a trained technician
  • Myth: Heat pumps only work in some homes
  • Fact: There are both ducted and non-ducted heat pump systems allowing heat pumps to work in every home
  • Myth: Heat pumps require complicated maintenance
  • Fact: Heat pumps often require less maintenance than boilers and furnaces. Maintenance is minimal: clean filters, keep outdoor units free of snow/debris, and schedule annual professional checks

Why should I consider installing a heat pump?

Besides the potential for energy savings, switching to a heat pump offers many benefits for your home:

  • Energy efficiency: Heat pumps use electricity to transfer heat rather than generate it by burning fossil fuels, making them both highly efficient and environmentally friendly.
  • Year-round versatility: One system handles both heating and cooling, eliminating the need for separate HVAC units.
  • Improved comfort and safety: Heat pumps help dehumidify the air, creating a more comfortable indoor environment. They also reduce the risk of carbon monoxide and other combustion-related pollutants indoors.
  • Low maintenance: Heat pumps typically require less maintenance than combustion-based systems, especially with regular filter changes and checkups.
  • Long-term value: Heat pumps may increase your home’s resale value by appealing to eco-conscious buyers.

When does it make sense to switch to a heat pump?

Before upgrading to a heat pump, it’s important to ensure your home is heat-pump ready, and that starts with weatherization, the process of improving home energy efficiency and comfort, primarily by proper air sealing and adequate insulation. These upgrades allow your heat pump to operate more efficiently and keep your home comfortable year-round by helping maintain the temperature of your home. The Sponsors of Mass Save offer rebates and incentives to complete these upgrades in your home.

And finally, you’ll want to consider your budget. If you're working within a budget, don’t rule out heat pumps. Heat pump costs depend on system size, type (ducted vs. ductless, air source vs ground source) and your home’s needs. It’s true that the upfront cost of a heat pump system can be higher than a traditional boiler or furnace, but between the rebates and incentives available, energy savings overtime, and the environmental benefits, they can be a smart investment with the right planning. Massachusetts’ electric utilities also now offer seasonal heat pump rates designed to reduce winter energy costs for residential customers who heat their homes with electric heat pumps.

What rebates and incentives are available in Massachusetts?

The Sponsors of Mass Save can help you make the switch more affordable with heat pump rebates and incentives that can help lower your upfront costs. Available rebates – whole-home, partial-home, and basic – are based on whether you use your heat pump as the sole source for heating and cooling your home, or as a supplement to an existing system. Rebates are offered based on equipment size (tonnage). Visit our webpage for a complete guide to rebates, participation steps, and eligibility requirements.

Additionally, through the Mass Save HEAT Loan program you can apply for 0% financing for eligible energy-efficient upgrades. You may be eligible to receive 0% financing up to $25,000 for qualifying energy-efficiency upgrades.

Finally, eligible customers may benefit from turnkey services, designed to make home energy improvements simple and stress-free for up to no cost. Available incentives include:

  • Air source heat pumps for up to no cost: Get energy-efficient heating, cooling, and dehumidification for year-round comfort.
  • Electrical panel upgrades for heat pumps and removal of barriers for weatherization: If your home requires an electrical panel upgrade to support the new equipment or health and safety related updates prior to weatherization, up to 100% of the cost may be covered.

If you prefer to take a self-guided path, you may choose your own participating Heat Pump Installer while also taking advantage of Enhanced Heat Pump Rebates.

Whether you’re exploring available rebates and turnkey incentives or applying for 0% financing, financial support from Sponsors of Mass Save makes the transition to heat pumps easier.

So, are you ready to make the switch?

If you’re not sure where to begin, the Sponsors of Mass Save offer a no-cost virtual decarbonization consultation to ensure your path to an electrified home works for your unique goals and needs. During your consultation, our trained specialists will:

  • Provide guidance about the benefits and considerations of transitioning to a new heating system
  • Answer technical questions about how heating and cooling systems work, and how systems can be used most efficiently
  • Help you make informed decisions specific to your goals and the unique needs of your home
  • Discuss steps to make your home even more efficient in advance of a new system, like making weatherization upgrades

If your home is heat pump ready and you are ready to take action, you should get quotes from contractors in the Mass Save Heat Pump Installer Network. The Find a Contractor tool can help you find a participating contractor near you.

Whether you're planning a system upgrade or exploring cleaner alternatives to fossil fuels, the Sponsors of Mass Save are here to help guide you through the transition. With rebates, 0% financing, and expert support available, it’s easier than ever to take the next step toward an energy efficient home.

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