Air Source Heat Pumps
Air source heat pumps are a smarter, more efficient option to keep your home comfortable all year long.
Air source heat pumps extract heat from the air outside and distribute it inside your home. During warmer months, this process is reversed to provide cooling.
There are both ducted and ductless heat pumps (commonly referred to as mini-splits), making them suited to homes with or without existing ductwork.
Residents can also take advantage of federal tax credits to lower the price of purchasing and installing an air 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 be serving 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 plan to keep an existing boiler or furnace in place to supplement a new heat pump system.
Air-Source Heat Pump rebates have changed as of January 1, 2025
- The whole-home heat pump rebate incentive is $3,000 per ton, capped at $10,000.
- Customers in 5+ unit homes are eligible to receive the whole-home rebate, provided all requirements noted on whole-home verification form can be met.
- All other whole-home heat pump requirements remain the same. There are no changes to the partial-home rebate, which will remain at $1,250 per ton.
- The above changes are effective for installations that take place on or after January 1, 2025.
| Air Source Heat Pump Rebates | ||
| Rebate Type | Rebate Amount |
Federal Tax Credit |
|---|---|---|
| Whole-Home | $3,000 per ton up to $10,000 | Up to $2,000** |
| Partial-Home | $1,250 per ton* up to $10,000 | |
| Income-Based Enhanced Incentive (whole-home or partial-home)*** | Up to $16,000 | |
* Tons are calculated based on AHRI cooling capacity divided by 12,000 BTUs. Rebate amount based on tons. ↩
** To qualify for a Federal 25C Energy Efficient Home Improvement Credit, the installed heat pump system must meet the Consortium for Energy Efficiency’s (CEE) highest non-"advanced" tier. Also note that the 25C Tax Credit is equal to 30% of the heat pump install cost after the Mass Save rebate is applied up to a total of $2,000 annually. An annual credit up to $600 is also available under the 25C Tax Credit for 30% of the cost of 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. ↩
*** Visit MassSave.com/Enhanced for additional information. Pre-existing fuel type must be oil, propane, or electric resistance.
Cost Example
Below are cost examples of installing a whole-home heat pump.
| Standard Incentive |
Income-Based Enhanced Incentive | |
|---|---|---|
| Average Installation Cost*** | $22,000 | $22,000 |
| Mass Save Rebate (Whole-Home) | $10,000 | $16,000 |
| Federal Tax Credit** | $2,000 | $1,800 |
| Net Project Cost | $10,000 | $4,200 |
***The average installation cost is based on Mass Save program data for whole-home air source heat pump installations completed in 2022. ↩
Not Sure Where to Start?
Schedule a no-cost, virtual consultation with a Mass Save Decarbonization Specialist for guidance. You can also use our Heating Comparison Calculator to compare the annual costs and savings of different systems.
Case Study: As Good as New
Instead of moving, Vance participated in a no-cost energy assessment to find ways to make his home more comfortable. By making insulation upgrades, installing two high-efficiency mini-split heat pumps, and advanced power strips, he saved $632 annually in energy costs.
Case Study: Dick MacDonough
After an existing central air conditioner unit broke down, Dick decided to upgrade to a high-efficiency heat pump and use a smart thermostat—reducing his annual carbon dioxide emissions by 5.1 metric tons.
