Ground Source Heat Pumps

Install a high-efficiency heat pump—and get up to $25,000 back.
Illustration of a ground source heat pump systema

Ground source heat pumps can offer significant savings on heating and cooling costs when compared to combustion heating systems.

These highly efficient systems extract heat from the ground during cold weather and distribute it throughout your home. During the warmer months, this process is reversed to provide cooling. This system is the most efficient type of heat pump and can be a great option for properties with sufficient outdoor space.

Residents can also take advantage of federal tax credits to lower the price of purchasing and installing a ground source heat pump. Greater discounts and no-cost options are also available to income-qualifying customers.

Rebates are based on whether the heat pump system will serve the whole-home or partial-home.

Whole-home rebates are available to customers who install heat pumps as the sole source of heating and cooling. See the Whole-Home Heat Pump Verification Form for details.

Partial-home rebates are offered based on equipment size (tonnage) to customers who install heat pumps in a section of their home.

 
Ground Source Heat Pump Rebates
Rebate Type Rebate Amount Federal Tax Credit
Whole-Home $15,000 per home 30% purchase and installation of costs***
Partial-Home $2,000 per ton*, up to $15,000
Income-Based Enhanced Incentive (whole-home or partial-home)** $25,000 per home

* Tons are calculated based on AHRI cooling capacity divided by 12,000 BTUs. Rebate amount based on tons.   

** The Sponsors of Mass Save offer enhanced incentives for income-qualified households. Pre-existing fuel type must be oil, propane, or electric resistance. Cape Light Compact enhanced heat pump rebates differ from the amount listed. Customers are eligible for 80% of the installed cost of qualifying heat pump systems.   

*** 25D Residential Clean Energy Property Credit. Federal tax credit is applied to install cost after the Mass Save rebate is applied. The 25D Tax Credit is equal to 30% of the ground source heat pump install cost. For more information on available tax credits, please visit the Inflation Reduction Act FAQ. This information does not represent tax or legal advice. Please consult your tax advisor for further details.   

 

Cost Example

Below are cost examples of installing a whole-home ground source heat pump. The average installation cost is based on Mass Save program data for whole-home ground source heat pump installations completed in 2022.


Standard Incentive
Income-Based Enhanced Incentive
Average Installation Cost $44,000 $44,000
Mass Save Rebate (Whole-Home) $15,000 $25,000
Federal Tax Credit* $8,700 $5,700
Net Project Cost $20,300 $13,300

 

* 25D Residential Clean Energy Property Credit. Federal tax credit is applied to install cost after the Mass Save rebate is applied. The 25D Tax Credit also covers the cost of electrical panel upgrades if they are installed in conjunction with a ground source heat pump or other installation authorized under the Tax Credit. For more information on available tax credits, please visit the Inflation Reduction Act FAQ. This information does not represent tax or legal advice. Please consult your tax advisor for further details.  

  1. Confirm Eligibility
    View the Eligibility Tab to confirm you are eligible to receive incentives. The Sponsors of Mass Save offer enhanced incentives to income-qualified households.
    If you are a Cape Light residential customer, please call 1-800-797-6699.
  2. Ensure Your Home Has Sufficient Weatherization
    View the Eligibility Tab for additional details. This is a requirement for whole-home rebates and may qualify customers pursuing partial-home rebates for a $500 bonus.
  3. Find a Qualifying Contractor
    To qualify, the heat pump system must be installed by a contractor participating in the Mass Save Heat Pump Installer Network. The contractor can help you determine what solution is best suited for your home.
  4. Purchase & Install Eligible Equipment
    Work with your contractor to purchase and install an eligible heat pump system.
    If doing a whole-home heat pump, you must also satisfy the requirements listed on the Whole-Home Heat Pump Verification Form.
  5. Submit Rebate Form with Required Documentation
    Apply Online
    Or
    Print & Mail Rebate Form 
  • Offers valid only for residential customers replacing oil, propane, or electric resistance heating systems where Cape Light Compact, Eversource, National Grid, or Unitil is the Mass Save Electric Sponsor
  • Offers valid only for residential customers replacing natural gas heating systems where Berkshire Gas, Eversource, Liberty Utilities, National Grid, or Unitil is the Mass Save Natural Gas Sponsor1
  • Equipment must be installed between January 1, 2024 and December 31, 2024 by a contractor participating in the Mass Save Heat Pump Installer Network
  • Equipment must be ENERGY STAR® Cold Climate certified. Refer to the Mass Save Heat Pump Qualified Products List for a complete list of eligible units
  • Equipment must be new and installed to displace oil, propane, natural gas, or electric baseboard (resistance) as the primary heating system.
  • Rebate form and supporting documentation must be received by February 28, 2025.

Please note, this rebate is only available to residences that are occupied full time during the winter heating season. Equipment must be installed in individually metered 1-4 unit buildings or townhouses to receive the whole-home rebate. Rebate cannot be combined with other Mass Save incentives for the same equipment. Rebate amount not to exceed total installation cost. Sponsor reserves the right to conduct a verification inspection prior to rebate payment. Please allow eight weeks for rebate processing. Sponsor does not warrant the performance of installed equipment. See Terms and Conditions for full requirements.

  1. Customers in municipal electric territories are eligible for heat pump rebates if they are a natural gas heating customer of one of the Sponsors of Mass Save. Customers with municipal gas heating are not eligible for heat pump rebates. 
  2. Sufficient weatherization can be demonstrated by satisfying at least one of the following requirements: (A) home was built during or after 2000, (B) Home Energy Assessment report indicates less than $1,000 worth of weatherization recommended, or (C) weatherization recommendations made during or after 2013 have been completed. Heat pumps installed for whole-home heating and cooling that do not meet the weatherization requirement may be eligible for partial-home rebate amounts.  

If you have any questions, please call 1-888-855-0340 or email [email protected].

The Sponsors of Mass Save offer 0% financing HEAT Loans to make energy efficiency upgrades more affordable to Massachusetts residents. Through this loan, you could qualify for a loan up to $50,000 toward qualified home improvements.

 

A person configuring an integrated control thermostat

​​​Not Sure Where to Start?

Start your home energy efficiency journey with a no-cost virtual or in-person home energy assessment. An Energy Specialist will seek out inefficiencies, recommend upgrades, and help you access available rebates and incentives.