Mass Save Rebates for HVAC in Massachusetts: Complete 2026 Guide

If you’re a Massachusetts homeowner thinking about upgrading your heating or cooling system, Mass Save rebates can put thousands of dollars back in your pocket. The program offers generous incentives for energy-efficient equipment, including heat pumps, insulation, smart thermostats, and more. In this guide, we break down exactly what’s available in 2026, how much you can save, and how to take advantage of every dollar.

What Is Mass Save?

Mass Save is a collaborative initiative sponsored by Massachusetts gas and electric utilities, including National Grid, Eversource, Cape Light Compact, Liberty Utilities, Berkshire Gas, and Unitil. The program’s goal is to help homeowners and businesses reduce energy consumption through rebates, no-cost energy assessments, and financing options.

Launched as part of the state’s commitment to reducing greenhouse gas emissions, Mass Save has distributed hundreds of millions of dollars in incentives since its inception. The program is available to virtually every homeowner in Massachusetts whose utility participates — and most do.

Eligible Equipment and Rebate Amounts for 2026

Mass Save incentives cover a wide range of energy-efficient upgrades. Below are the major categories and what you can expect to save.

Heat Pumps — Up to $8,500 in Rebates

Heat pumps are the star of the Mass Save program. As Massachusetts pushes toward electrification, the rebates for heat pump installations have grown significantly. Whole-home air-source heat pump systems can qualify for up to $8,500 in combined rebates, depending on the system size and whether you’re replacing an oil or propane system.

Ductless mini-split heat pumps are also eligible, typically qualifying for $1,250 to $3,500 per system depending on capacity and configuration. Ground-source (geothermal) heat pumps can receive even higher incentives, though they involve more complex installations.

Spencer Home Services is an approved Mass Save heat pump installer on the North Shore. Learn more about our heat pump services.

Insulation — Up to $2,000 in Rebates

Proper insulation is one of the most cost-effective ways to reduce energy bills. Mass Save covers 75% of insulation costs, up to $2,000 for most homeowners. Eligible areas include attic insulation, wall cavity insulation, basement and crawlspace insulation, and air sealing.

The best part? Mass Save provides a free home energy assessment where a technician inspects your home, identifies insulation gaps, and recommends improvements — all at no cost to you.

Smart Thermostats — Up to $100 Back

Upgrading to an ENERGY STAR-certified smart thermostat qualifies for a rebate of up to $100. Compatible models include popular options from Nest, Ecobee, and Honeywell. A smart thermostat can save the average household 8-12% on heating and cooling costs annually.

High-Efficiency Furnaces and Boilers

If you’re replacing a gas furnace, models with 97% AFUE or higher can qualify for rebates of $500 to $1,250. High-efficiency gas boilers (95% AFUE and above) may qualify for similar incentives. See our furnace installation services.

The 0% Heat Loan: Finance Your Upgrade Interest-Free

One of the most valuable — and often overlooked — benefits of Mass Save is the Heat Loan program. This offers 0% interest financing for up to 7 years on qualifying energy-efficient improvements. That means you can install a $15,000 heat pump system and pay it off over 84 months with zero interest charges.

The Heat Loan can be combined with rebates, so you receive your upfront incentive and finance the remaining balance at 0% APR. Eligible improvements include heating system replacements, insulation, water heaters, and central AC systems. Loan amounts typically range from $500 to $25,000.

Income-Eligible Enhanced Programs

If your household income is at or below 60% of the state median income (SMI), you may qualify for enhanced incentives through Mass Save’s income-eligible program. Benefits can include no-cost insulation (100% covered instead of 75%), no-cost heating system repairs or replacement in some cases, and higher rebate amounts on qualifying equipment.

Households between 60% and 80% of SMI may also qualify for additional discounts. It’s worth checking your eligibility even if you’re not sure — the income thresholds are more generous than many people expect.

How to Apply for Mass Save Rebates: Step by Step

Step 1: Schedule a No-Cost Home Energy Assessment

Contact your utility provider or visit MassSave.com to schedule a free home energy assessment. A certified energy specialist will visit your home, evaluate your insulation, heating and cooling systems, and identify areas for improvement.

Step 2: Review Your Assessment Report

After the assessment, you’ll receive a detailed report outlining recommended upgrades and the rebates available for each. This report serves as your roadmap for maximizing savings.

Step 3: Choose a Qualified Contractor

For HVAC installations, you’ll want to work with a licensed contractor who is familiar with Mass Save requirements. Spencer Home Services is a participating Mass Save contractor, meaning we handle the rebate paperwork on your behalf.

Step 4: Complete the Installation

Once your equipment is installed, your contractor submits the rebate application. Most rebates are processed within 4-6 weeks, and you’ll receive a check or bill credit from your utility.

Why Work With a Mass Save-Approved Contractor?

Choosing a contractor who participates in Mass Save isn’t just convenient — it can actually affect your rebate eligibility. Approved contractors understand the program’s efficiency requirements, proper documentation procedures, and equipment specifications.

Spencer Home Services has helped hundreds of North Shore homeowners navigate Mass Save rebates. We handle the application process from start to finish, ensuring you receive every dollar you’re entitled to. Our technicians are licensed, insured, and trained on the latest high-efficiency equipment. Explore our AC installation services.

Combine Federal and State Incentives

In addition to Mass Save, federal tax credits under the Inflation Reduction Act (IRA) offer up to $2,000 for qualifying heat pump installations and $1,200 per year for other efficiency improvements. These federal credits can be stacked on top of Mass Save rebates, potentially saving you $10,000 or more on a single project.

For example, a whole-home heat pump installation might qualify for $8,500 from Mass Save plus $2,000 in federal tax credits — a total of $10,500 in incentives before you even factor in the 0% Heat Loan financing.

Frequently Asked Questions