Incentives

Federal

Federal Tax Credit

  • 30% up to $2,000/year for heat pumps & heat pump water heaters
  • Tax credit limited to a total of $3,200 per year for combined measures
    • No rollovers
    • Ends 12/31/25
  • For more details, see here

Federal Energy Efficiency Rebates

State-specific applications and qualifications:

Massachusetts

MassSave Rebates

Whole Home: 

  • $3,000/ton (12,000 BTU) of heating capacity, up to $10,000 ($16,000 for moderate income)
  • Must be sized properly for 100% of home’s need
  • Legacy system must be disconnected from thermostat or removed 

Partial Home: 

  • $1,250 per ton (12,000 BTU) of heating capacity ($16,000 for moderate income)
  • Integrated controls may be required
  • $500 adder if adding insulation 

MassSave HEAT Loan Program 

  • $25,000 zero-interest rate loan
  • Batteries may earn money from Connected Solutions program

Rhode Island

Clean Heat RI rebates

  • This program is available to all Rhode Islanders who heat with oil, propane, or natural gas. If you heat with electric resistance, see Rhode Island Energy’s rebate program below.
  • For heat pumps, the incentive amount is 60% of heat pump system and installation costs up to $11,500. For heat pump water heaters, the incentive is $2,500. Overall, the Clean Heat RI incentives are capped at $18,000 per residential address.
  • For a breakdown of eligibility requirements and incentives, visit their website here: https://cleanheatri.com/resources/incentives/.

Rhode Island Energy rebates

Rewiring America RI Heat Pump Access Program

  • Rewiring America has partnered with global manufacturers and local contractors to offer Rhode Island homeowners brand new heat pumps at a 20-30% reduced cost compared to standard market pricing
    • Program eligibility:
      • Residents of RI
      • 60-150% State Median Income (SMI)
      • Own or live in a 1-4 unit building (attached/detached)1
  • Through the program, GEM Plumbing and Heating would be the installation partners, Abode Energy, the Clean Heat Rhode Island administrator, would be the heat pump experts that customers can refer to, and Capital Good Fund, alongside other lending partners, would be the recommended partner for low- or no-interest financing options
  • This incentive can be stacked with other incentives such as the Clean Heat Rhode Island incentive and federal tax credit
  • For a breakdown of potential savings or to schedule a free consultation, visit their website: https://homes.rewiringamerica.org/ri