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

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 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 a per-system rebate that depends 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

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

The upside? 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

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

High-Efficiency Furnaces and Boilers

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

The Heat Loan: Mass Save Financing For Your Upgrade

One of the most valuable — and often overlooked — benefits of Mass Save is the Heat Loan program, which offers financing on qualifying energy-efficient improvements through participating lenders. The rate, the term and the eligibility rules are set by Mass Save and its lenders, not by Spencer, and they change from time to time. Confirm the terms in effect at masssave.com before you count on them.

The Heat Loan can be combined with rebates, so you take the upfront incentive and finance the remaining balance. Eligible improvements include heating system replacements, insulation, water heaters, and central AC systems. Spencer can walk you through how the loan and the rebate stack on a specific project as part of the estimate.

Income-Eligible Enhanced Programs

If your household income is at or below three-fifths 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 (fully covered instead of three-quarters covered), no-cost heating system repairs or replacement in some cases, and higher rebate amounts on qualifying equipment.

Households between three-fifths and four-fifths 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.

What Spencer adds on top of the rebate. We apply your Mass Save rebate to the project on the spot rather than leaving you to wait on a rebate check. Eligible heat pump installations carry a 12-year parts and labor warranty; annual inspections and applicable terms are required to maintain coverage (warranty details). All of it appears in writing on the proposal before any work is authorized.

Federal Tax Credits: Confirm Before You Count On Them

Federal energy-efficiency tax credits changed for the 2026 tax year, and figures published in earlier years no longer apply. Whether any federal credit is available for your installation depends on current federal law and on your own tax situation, so confirm it with a qualified tax professional before counting on it.

Mass Save incentives are separate from any federal credit, and they are the ones we confirm for you directly. Request an estimate to see what your home qualifies for, with no sales visit and no obligation.

Frequently Asked Questions