Heat Pump Water Heaters

Rebates are available for residents replacing an existing electric, propane, natural gas, or oil water heater.

*25C Energy Efficient Home Improvement Credit. NOTE: IRA Section 25C tax incentives, which allow homeowners to claim up to $3,200 annually for qualifying energy efficiency home improvements – including heat pumps, heat pump water heaters, and weatherization measures – is set to expire at the end of 2025. Expenditures made after December 31, 2025, will no longer be eligible for this credit. This information does not represent tax or legal advice. Please consult your tax advisor for further details. ↩

 

Cost Example

Below is a cost example of installing a heat pump water heater.

 

* Installed cost based on heat pump water heater vendor and contractor feedback.  ↩

**25C Energy Efficient Home Improvement Credit. Federal tax credit is applied to install cost after the Mass Save rebate is applied. The 25C Tax Credit is equal to 30% of the heat pump water heater install cost after the Mass Save rebate is applied up to a total of $2,000 annually. The 25C Tax Credit also allows an annual credit up to $600 for electrical panel upgrades if they are installed in conjunction with a heat pump or heat pump water heater. 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.   ↩

 

There are three ways to receive an instant rebate on qualifying heat pump water heaters.

1. Work with a Licensed Plumber/Installer
   Your plumber or installer can purchase a qualifying heat pump water heater at a Participating Distributor to receive an instant rebate of $750.
   
   Or
   
   
2. Purchase a System From a Participating Retailer
   The Sponsors of Mass Save have partnered with Home Depot and Lowes to offer residents instant, in-store discounts on qualifying heat pump water heaters. To receive the discount, visit MassSave.com/Instant to validate your eligibility and receive a code.
   
   You will need to have your utility account number on hand. Present the code at the register and an instant rebate of $750 will be applied to the purchase price.
   
   Or
   
   
3. Purchase a System from the Mass Save Heat Pump Water Heater Online Marketplace
   The Mass Save Heat Pump Water Heater Online Marketplace provides resources and guidance to help you decide if a heat pump water heater is right for your home. Through our Product Advisor tool, you can provide specific information about your home and potentially be eligible for a fixed-cost installation. The Mass Save Water Heater Savings Calculator can help you see how much you can save annually with a heat pump water heater. You have the option to purchase eligible water heaters for pick-up or delivery and/or get connected with a contractor for full installation. No matter which option you select, the $750 instant rebate will be applied directly to your purchase price.
   
   You will need to have your utility account number on hand and know what fuel you currently use to heat the water in your home.

If your equipment was purchased online or from a non-participating retailer or distributor without a rebate applied at the time of purchase, you can submit your rebate online via the Rebate Portal or download a mail-in rebate form. For questions about applied rebates, please contact your installation contractor.

• Offers valid only for residential customers in Massachusetts where Berkshire Gas, Cape Light Compact, Eversource, Liberty, National Grid, or Unitil is the Program Sponsor¹.
• Equipment must be installed by a licensed plumber between January 1, 2025 and December 31, 2025.
• 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 OR installed as part of a new home construction project that is not earning incentives through another Mass Save program.
• 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/.
• 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. Sponsor does not warrant the performance of installed equipment. See Terms and Conditions on the rebate form for full requirements.

 

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.  ↩

If you have any questions about rebates through participating distributors, please call 1-617-440-5468 or email [email protected].

If you have any questions about rebates through participating retailers, please call 1-888-895-0568 or email [email protected].

If you have any questions about rebates through the online marketplace, please call 1-617-849-7366 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 $25,000 toward qualified home improvements.