Propane Heating and Water Heater Rebates

Lower your energy bills and make your home more comfortable.

Before upgrading or installing a propane boiler or furnace, consider a heat pump. Heat pumps provide both heating and cooling in one unit, can work with or without existing ductwork, and – compared to heating and cooling with oil or propane – can save you up to 50% on your energy expenses. The Sponsors of Mass Save® offer rebates up to $15,000 on qualifying heat pump systems. Click here to learn more.

High-Efficiency Propane Heating Equipment Rebates

You can reduce your winter energy costs by upgrading to high-efficiency heating equipment. In addition to savings on your monthly bill, Sponsors of Mass Save® offer rebates of up to $2,300 to eligible customers.

High-Efficiency Propane Heating Equipment Rebates

Customers replacing existing Condensing Propane Furnaces or Boilers are not eligible for Tier II rebate amounts. If pursuing Tier II rebates, pre-verification is required prior to installation. Visit

Equipment Type Efficiency Requirement Tier I Rebate Amount Tier II Rebate Amount
Hot Air Furnace with ECM* ≥95% AFUE** $200 $750
Hot Water Boiler
≥95% AFUE $200 $2,300
Combined Condensing Furnace with On-Demand Water Heater ≥95% AFUE $950
Combined Condensing Boiler with On-Demand Water Heater ≥95% AFUE $1,600
  1. *Electronically Commutated Motor (ECM)  
  2. **Annual Fuel Utilization Efficiency (AFUE) Rating  

≥95% AFUE


High-Efficiency Propane Water Heating Equipment Rebates

A high-efficiency water heater can reduce your monthly energy costs. In addition to savings on your monthly bill, eligible customers can save on upfront equipment costs with rebates of up to $700.

High-Efficiency Propane Water Heating Equipment Rebates

Equipment Type Efficiency Requirements Rebate Amount
Indirect Water Heater Must be attached to a propane-fired heating system. Must replace a freestanding or tankless water heater. Solar storage tanks are not eligible. $400
On-Demand Tankless Water Heater Must be ENERGY STAR® certified with 0.87 UEF* or higher with electronic ignition. $700

*Uniform Energy Factor (UEF)  


Interested in 0% financing?

Apply for a Mass Save HEAT Loan prior to installing your equipment. The Sponsors® of Mass Save are buying down interest rates to make energy efficiency more affordable for Massachusetts residents. With our HEAT Loan, you could qualify for a loan of up to $25,000 toward qualified energy efficient home improvements with terms up to seven years, depending on your Sponsor and the loan provider.



  • Offers valid only for residential customers in Massachusetts where Cape Light Compact, Eversource, National Grid, or Unitil is the Program Sponsor.
  • Condensing heating equipment replacing pre-existing non-condensing heating equipment may be eligible for Tier II rebates:
    • Account holder must complete a special home visit or Home Energy Assessment prior to installation to confirm the inefficiency of existing equipment. Get started at
  • Equipment must be purchased and installed between January 1, 2022, and December 31, 2022
  • Equipment must be installed by a licensed contractor or plumber
  • Rebate form must be filled out completely, signed, accompanied by dated receipts or invoices, and received by the Mass Save representative within 60 days of installation

Equipment installation may be subject to a verification inspection prior to rebate reimbursement. See Terms & Conditions for full requirements.


For more information about program details and the rebates offered on qualified equipment, call 1-800-232-0672 or email [email protected].