2026 Mass Save Heat Pump Rebates: What Cape Cod Homeowners Need to Know
A heat pump can provide heating and cooling from one system, but the initial installation cost can be significant. For qualifying Massachusetts homeowners, Mass Save rebates may reduce that cost by thousands of dollars.
The amount available depends on how the heat pump will be used, the size of the system, the home’s existing heating equipment and whether the household qualifies for enhanced income-based incentives.
For 2026, Mass Save offers four primary incentive categories for residential air-source heat pumps.
| Rebate type | 2026 incentive |
|---|---|
| Whole-home heat pump | $2,650 per ton, up to $8,500 |
| Partial-home heat pump | $1,125 per ton, up to $8,500 |
| Basic heat pump rebate | $250 per ton, up to $2,500 |
| Income-based enhanced incentive | Up to $16,000 or potentially no cost through Turnkey Services |
Mass Save calculates tonnage by dividing the qualifying equipment’s AHRI cooling capacity by 12,000 BTUs. The final rebate therefore depends on both the program category and the rated capacity of the installed system. Homeowners should review the current 2026 Mass Save air-source heat pump rebate requirements before signing an installation agreement.
Whole-Home Heat Pump Rebate
The whole-home rebate provides $2,650 per ton, up to a maximum of $8,500.
This category is designed for homeowners who will use heat pumps as the sole source of heating and cooling. The existing furnace or boiler generally cannot continue operating as a backup heating source under a whole-home application.
To qualify, the home must:
- Use the new heat pump system as its sole source of heating and cooling
- Be occupied full time during the winter heating season
- Meet Mass Save weatherization requirements
- Use eligible ENERGY STAR Cold Climate equipment
- Have the system installed by a contractor in the Mass Save Heat Pump Installer Network
- Submit a completed Whole-Home Heat Pump Verification Form
A home may satisfy the weatherization requirement if it was built during or after 2000, if a Home Energy Assessment recommends less than $1,000 in weatherization work, or if qualifying recommendations made during or after 2013 have been completed.
If the system is intended to heat the whole home but the property does not meet the weatherization requirement, the installation may qualify for the lower partial-home rebate instead.
Partial-Home Heat Pump Rebate
The partial-home rebate provides $1,125 per ton, up to $8,500.
This option is intended for homeowners who plan to keep an existing boiler or furnace available to supplement the heat pump. It may be appropriate when heat pumps will serve most of the house but the homeowner is not ready to fully disconnect the existing heating system.
Where oil, propane or natural gas equipment remains active in the same heating zone, Mass Save generally requires an approved integrated control. This control switches between the heat pump and the backup system based on outdoor temperature and the selected operating strategy.
Partial-home applicants may also qualify for two additional $500 incentives:
$500 sizing bonus
The system must be sized to meet the home’s total heating needs. Mass Save requires qualifying equipment to cover 90% to 120% of the calculated heating load at the outdoor design temperature throughout the conditioned space.
A professional heating-load calculation must be submitted with the application.
$500 weatherization bonus
Homeowners may qualify by completing a Home Energy Assessment and installing recommended weatherization measures within one year before or up to six months after the heat pump installation.
These bonuses must be requested with the original partial-home rebate application.
Basic Heat Pump Rebate
The basic rebate provides $250 per ton, up to $2,500.
It applies to projects that are not replacing or displacing fossil-fuel or electric-resistance heating. Common examples include:
- Replacing an existing heat pump
- Replacing a central air-conditioning system with a heat pump
- Adding heating and cooling to a new addition
- Installing a system in a previously unconditioned room
- Installing a heat pump in a seasonal home that is not occupied during winter
This category can be particularly relevant on Cape Cod, where many properties are used primarily during spring, summer and fall. Whole-home and partial-home incentives generally require the property to be occupied full time during the winter heating season.
A new addition does not qualify for the partial-home rebate, but the equipment serving that addition may qualify for the basic rebate.
Income-Based Heat Pump Incentives
Income-qualified households may be eligible for an incentive of up to $16,000. Some homeowners may qualify for air-source heat pumps at up to no cost through Mass Save Turnkey Services.
These enhanced incentives generally apply when the heat pump supplements or replaces oil, propane or electric-resistance heating.
Mass Save uses household size and annual income to determine whether a customer qualifies for the Income Eligible Program or the Enhanced Incentive Program.
Examples for the 2025–2026 heating season include:
| Household size | Income Eligible Program | Enhanced Incentive |
|---|---|---|
| 1 person | Up to $51,777 | $51,778–$69,036 |
| 2 people | Up to $67,709 | $67,710–$90,279 |
| 3 people | Up to $83,641 | $83,642–$111,522 |
| 4 people | Up to $99,573 | $99,574–$132,764 |
Income limits may change by heating season. Homeowners should use the Mass Save income qualification information and enter their ZIP code before making financial assumptions.
All weatherization recommendations identified during the required Home Energy Assessment must generally be completed before applying for the enhanced rebate. Enhanced-rebate equipment must also be installed by a participating Mass Save heat pump contractor.
Who Is Eligible for a 2026 Mass Save Heat Pump Rebate?
Standard whole-home, partial-home and basic rebates are available only through participating Mass Save sponsors.
For homeowners replacing oil, propane or electric-resistance heating, the electric sponsor must generally be:
- Cape Light Compact
- Eversource
- National Grid
- Unitil
Homeowners replacing natural gas heating may qualify where their gas account is served by Berkshire Gas, Eversource, Liberty, National Grid or Unitil.
Cape Cod homeowners should verify the sponsor shown on their utility account. The program requires customers to apply using the applicable residential electric or gas account.
The equipment must also:
- Be new
- Meet ENERGY STAR Cold Climate requirements
- Appear on the Mass Save qualified-products list
- Be installed between January 1 and December 31, 2026
- Be installed by a participating Heat Pump Installer Network contractor
The rebate application and supporting documents must be received by February 28, 2027.
Are Additional Heat Pump Incentives Available in 2026?
Some qualifying equipment may also receive a point-of-sale incentive through the New England Heat Pump Accelerator.
The Accelerator currently offers $650 per qualifying air-source heat pump outdoor unit, with a limit of two heat pump incentives per dwelling unit. The discount is passed through by an enrolled distributor and should appear on the contractor’s invoice.
The program states that its incentives can be combined with available Mass Save incentives, although homeowners should confirm that the proposed equipment and contractor meet the requirements of both programs.
The New England Heat Pump Accelerator incentive program began February 1, 2026, and is currently scheduled to continue through 2029.
Is the Federal Heat Pump Tax Credit Still Available?
The previous federal Energy Efficient Home Improvement Credit is not available for heat pumps placed in service after December 31, 2025.
Homeowners planning a 2026 project should not subtract the former federal credit from their estimated cost. The IRS confirms that the Section 25C credit ended for property placed in service after the 2025 deadline.
This does not affect the separate 2026 Mass Save rebates described above.
Can the Mass Save HEAT Loan Be Combined With a Rebate?
Qualifying homeowners may be eligible for a Mass Save HEAT Loan offering:
- 0% interest financing
- Up to $25,000
- Financing for qualifying heat pump projects
- Terms of up to seven years, depending on the lender and sponsor
Available rebates are generally deducted when determining the portion of the project that can be financed.
The loan process must be completed before the installation begins. Whole-home projects also require a no-cost Home Energy Assessment. Homeowners can review the Mass Save HEAT Loan application process before authorizing work.
How to Apply for a Mass Save Heat Pump Rebate
1. Confirm your utility eligibility
Verify that your residential electric or gas account is served by a participating Mass Save sponsor.
2. Complete a Home Energy Assessment
A Home Energy Assessment is required for whole-home projects and for partial-home applicants seeking weatherization-related bonuses.
3. Determine which rebate category applies
Decide whether the system will serve as the sole heating source, supplement an existing boiler or furnace, or replace existing cooling or heat-pump equipment.
4. Hire a participating contractor
The system must be installed by a contractor in the Mass Save Heat Pump Installer Network.
Upper Cape Heating & Cooling provides professional heat pump installation on Cape Cod and is a participating Mass Save-approved contractor serving Bourne, Falmouth, Mashpee, Sandwich and surrounding Upper Cape communities. The team can help identify qualifying equipment and explain which rebate category may apply to the proposed installation.
5. Confirm equipment eligibility
The exact indoor and outdoor equipment combination should appear on the applicable qualified-products list.
6. Keep all documentation
Retain the signed proposal, final invoice, model numbers, AHRI information, load calculations, verification forms and proof of completed weatherization.
7. Submit the application on time
For systems installed in 2026, Mass Save must receive the rebate form and supporting documentation by February 28, 2027.