Electric Heating and Cooling for Businesses 

Heat Pump outside a Massachusetts Business

The Sponsors of Mass Save® offer a variety of incentives to commercial electric customers for installing qualified high-efficiency central ducted, and ductless mini or multi-split heat pump systems that are less than 5.4 tons. Heat pump systems offer both heating and cooling in your business space.


Standard Rebates

Equipment Type Efficiency Requirements Incentive Amount1
Central Ducted Heat Pump

Ductless Mini or Multi Split
Refer to Heat Pump Qualified Products List at MassSave.com/HPQPL $250 per ton


Energy Optimization Rebates

We offer enhanced rebates to customers who have a pre-existing heating type of oil, propane, or electric resistance and who plan to use their heat pump system(s) for heating during winter months.

Equipment Type Efficiency Requirements Primary Fuel Type Additional Requirements Incentive Amount1
Central Ducted Heat Pump

Ductless Mini or Multi Split
Refer to Heat Pump Qualified Products List at MassSave.com/HPQPL Oil, Propane or Electric Resistance Heat Integrated Controls2 required (for oil or propane heat) unless central heating system is removed3.
Refer to Integrated Controls Qualified Products List at MassSave.com/ICQPL
$1250 per ton
Actual tons are calculated based on AHRI cooling capacity divided by 12,000 BTUs. Incentive amount based on actual tons.   
  • Integrated controls are either approved control packages or dual fuel thermostats that switch between a heat pump and a central heating system.  
  • Customers that choose to fully replace existing central heating systems with heat pump equipment may access the Energy Optimization incentive levels without the installation of an integrated control. See Terms and Conditions for full requirements. Cannot be combined with other rebate for same equipment.  
  • Please see Terms & Conditions on the application for full requirements. Cannot be combined with any other incentive for same equipment.



    • Business space must be less than 10,000 sq. ft. and systems must be less than 5.4 tons each. If your business space or system size exceed the thresholds listed, please contact your Mass Save Sponsor to see what other opportunities may be available. You may use the Find Your Sponsor Tool to determine the appropriate electric Sponsor for your area.
    • Equipment must be installed at an eligible property with an active commercial or industrial electric account with Cape Light Compact (Cape Cod and Martha’s Vineyard), Eversource, National Grid or Unitil.
    • Equipment installation may be subject to an onsite verification.


    How to Apply for Your Incentive

    • 1

      Contact your preferred HVAC contractor to determine which equipment is right for your business.

    • 2

      Have your contractor review the Heat Pump Incentive Application with you.

    • 3

      When the installation is completed by a licensed contractor, complete the application and submit with the required documents by email or online. Required documents include a dated receipt and contractor invoice showing the total install cost, make, model and date of installation and a W-9 form completed by whoever is receiving the incentive.For Energy Optimization incentives only, provide a copy of your most recent oil, propane or electric bills.


    Once Installed, here are some tips to help you maximize your savings:

    • 1

      Set your heat pump to “heat” or “cool” at a comfortable temperature, then leave it in auto mode. Unlike conventional systems, heat pumps work best when left at a constant temperature.

    • 2

      Clean your filters at least twice a year.

    • 3

      Regularly clear your outdoor unit of snow, leaves or other debris.

    • 4

      Have your heat pump professionally serviced every fall.

    • 5

      Insulate and seal all attic ductwork if applicable.

    What’s a Central Heat Pump?

    A central heat pump operates on the same principles as a central air conditioning system, but provides both heating and cooling by using the difference between outdoor air temperatures and indoor air temperatures to cool and heat your business. Using air-source heat pumps in the winter to complement your existing heating system can reduce your overall heating costs.


    What’s a Mini-Split Heat Pump?

    Mini-Split Heat Pumps are efficient HVAC systems that can produce cooling for the summer months and heating in the winter months. A mini-split system is composed of two components: an outdoor condensing unit and one or more indoor air handling units, connected by a conduit through your wall.


    What’s an Integrated Control?

    For customers who heat their business space with oil or propane, effectively using heat pumps with your existing heating system can reduce your heating costs. By installing an Integrated Control, the system can automatically switch from heating with your heat pump to your conventional heating system based on a preselected outdoor temperature, recommended to be set at 30 degrees. This allows for maximum comfort and cost savings throughout the winter months. As each building’s heating need is unique, work closely with your contractor to determine whether integrated controls are a good fit.

    The Sponsors provide generous incentives to encourage the reduction of high CO2 heating fuels. To receive incentives, eligible candidates must heat primarily with oil or propane, and install a qualifying central heat pump or mini-split heat pump with an approved integrated control. In addition, for customers who heat primarily with electric resistance baseboard, Energy Optimization incentives are also available to you; however, Integrated Controls are not applicable or required.


    For questions or more information, please contact your Mass Save Electric Sponsor using the Find Your Sponsor Tool for contact information for your area.

    Find Your Mass Save Sponsor

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