Heating and water heating equipment

Overview and benefits

Heating is the largest energy expense in the average U.S. home, accounting for about 45% of your energy bill. New high-efficiency heating or water heating equipment can help you save up to 30%, or about $400, on heating costs each year.

A furnace or boiler’s efficiency is measured by its Annual Fuel Utilization Efficiency (AFUE) rating. An AFUE of 90% means that 90% of the energy in the fuel becomes heat for the home, and the other 10% is wasted.

A water heater’s efficiency is measured as an Energy Factor (EF), where the higher the number, the more energy efficient the water heater. New equipment can have an EF as high as 2.

By replacing equipment before it breaks down, more time is available to find the best price on high-efficiency equipment.

To ensure the proper sizing, comfort and cost savings, be sure to complete any insulation and air sealing upgrades prior to upgrading heating and water heating equipment.

By using less energy than older models, efficient equipment helps you save money in the long term. To determine your new equipment’s AFUE or EF, look for the yellow EnergyGuide sticker on the appliance. The higher the AFUE or EF, the less energy is used, saving you money.

Additionally, with the use of heat pump technology, which moves heat vs. creates it, space and water heating can achieve even greater efficiency than traditional fossil fuel burning systems. Rebates on heat pump systems and heat pump water heaters are available through Mass Save.


How it works




Available rebates and incentives

If heating or water heating improvements were recommended during your Home Energy Assessment, you could be eligible for rebates of up to $2,750 when you install new, qualifying equipment that meets minimum efficiency requirements.


System not working properly?

Check out our heating and cooling replacement guide.


Next steps