Please Note: The Sponsors of Mass Save® have announced changes planned to residential heating, cooling and water heating incentives. These changes will impact incentives for eligible installations completed between January 1, 2024 and December 31, 2024. A complete list of 2024 Residential Heating & Cooling Incentives can be found here.
Heat Pump Water HeatersLower your water heating bills and save on equipment costs.
The Sponsors of Mass Save® offer instant savings of $750 - $1,500 to residential customers that have a licensed plumber install a qualified heat pump water heater when replacing an existing residential electric, propane, natural gas, or oil water heater.
|Fuel Type||Equipment Type||Efficiency Requirement||Rebate Amount||Federal Tax Credit|
|Oil, Propane, Natural Gas or Electric Resistance||Heat Pump Water Heater||ENERGY STAR certified UEF 3.30||$750 per unit*||Up to $2,000**|
|Heat Pump Water Heater (120volt/15amp circuit)||ENERGY STAR certified UEF 2.20|
|Split-System Heat Pump Water Heater||ENERGY STAR certified UEF 2.20||$1,500 per system*|
*Instant savings applied at the time of checkout from participating distributors and retailers. Some restrictions apply. ↩
**Disclaimer: This information does not represent tax or legal advice. Please consult your tax advisor for further details. ↩
How does it work?
Reducing the upfront cost of heat pump water heaters makes them cost competitive with traditional water heating systems, while being up to three times more efficient. There are two ways to receive an instant rebate on qualifying heat pump water heaters, both of which eliminate the need to fill out any paperwork.
Work with an installer. When your installer purchases a qualifying unit at a participating distributor, an instant rebate of $750 will be automatically applied to the cost of the equipment and these cost savings will be applied directly to your installation invoice.
Purchase a qualifying unit from a participating retailer. The Sponsors of Mass Save® have partnered with several retailers across the state to offer you an instant in-store rebate of $750. You may purchase a heat pump water heater directly from the retailer to receive the instant rebate. Visit MassSave.com/Instant to validate your eligibility and receive a code. Present the code at the register and an instant rebate of $750 will be applied to the purchase price.
Instant in-store rebates are available at the following Massachusetts retailers:
- Home Depot
Interested in 0% financing?
Apply for a Mass Save HEAT Loan prior to installing your equipment. The Sponsors® of Mass Save are buying down interest rates to make energy efficiency more affordable for Massachusetts residents. With our HEAT Loan, you could qualify for a loan of up to $25,000 toward qualified energy efficient home improvements with terms up to seven years, depending on your Sponsor and the loan provider.
- Offers valid only for residential customers in Massachusetts where Berkshire Gas, Cape Light Compact, Eversource, Liberty Utilities, National Grid, or Unitil is the Program Sponsor1.
- Equipment must be installed by a licensed plumber between January 1, 2023 and December 31, 2023.
- Equipment must be ENERGY STAR certified
- Equipment must be new and installed to replace an existing residential electric resistance, propane, natural gas, or oil water heater.
- Contractors can receive a $750 instant incentive on eligible models through participating distributors listed here. For more information about program details and the rebates offered on qualified equipment through participating distributors call (617) 440-5468 or email [email protected]
- Customers may purchase a heat pump water heater directly from Home Depot or Lowe's to receive a $750 instant rebate. For more information on instant rebates through participating retailers call 1-888-895-0568 or email [email protected].
- Equipment must be installed in a residential home with 1-4 units.
- To find ENERGY STAR certified Heat Pump Water Heater units talk to a licensed contractor or visit the ENERGY STAR website for a list of local installers at www.energystar.gov/productfinder/water-heater-installers/
Please note, equipment must be installed in a residential home with 1-4 units. Program is subject to change without notice, including rebate and incentive levels. Rebate cannot be combined with other Mass Save incentives for the same equipment. Rebate amount not to exceed total purchase price. Sponsor reserves the right to conduct a verification inspection. Sponsor does not warrant the performance of installed equipment.
1. Customers in municipal electric territories are eligible for heat pump water heater incentives if they are a natural gas heating customer of one of the Sponsors of Mass Save. ↩