2026 Mass Save® Ground-Source Heat Pump Incentive Architecture
Funded by Massachusetts electric distribution utilities (Eversource, National Grid, Cape Light Compact, and Unitil), the Mass Save heat pump incentive framework provides the highest level of residential and commercial clean heat grant funding in the nation. Because ground-source heat pumps permanently shift winter peak demand away from fossil fuels without straining electric grid distribution infrastructure during polar vortexes, utilities offer substantially larger rebates for geothermal than for air-source equipment.
Residential Rebates: Standard ($13,500) vs. Enhanced Income-Qualified ($25,000)
Residential heat pump rebates require whole-home ground-source displacement (the system must be sized to provide 100% of the home's heating and cooling load):
- Standard Whole-Home Rebate: Up to $13,500 for single-family residential retrofits. Qualifying requires an authorized Heat Pump Qualified Installer verification and proper AHRI-rated equipment selection.
- Income-Eligible Enhanced Rebate: Up to $25,000 for households earning 80% or less of the Area Median Income (AMI). Income verification is administered through local Community Action Program (CAP) agencies.
- Mass Save 0% HEAT Loan: Homeowners can finance up to $25,000 at 0% APR for up to 7 years (84 months), requiring ~$298/month with zero interest charges.
Commercial Heat Pump Incentives: $3,600/Ton & Custom Pathways
For commercial facilities, multi-family developments (5+ units), and institutional properties:
- Prescriptive Commercial Rebate: $3,600 per ton for qualifying ground-source heat pump projects up to 35 tons. Mandatory Mass Save sponsor preapproval is required prior to equipment purchase and drilling mobilization.
- Large Commercial Custom Pathway (>35 Tons): Projects exceeding 35 tons follow the Mass Save custom engineering incentive pathway. Rebates are calculated based on verified annual natural gas/fuel oil displacement and peak electrical reduction, requiring detailed energy modeling submittals.
- Municipal Light Plants (MLPs) Identified Separately: Properties served by municipal light plants (e.g. Concord CMLP, Wellesley MLP, Belmont Light, Groton Electric) do not participate in investor-owned Mass Save funding; separate local municipal electrification rebates apply.
Section 48 Commercial Investment Tax Credit (ITC) Conditions
Commercial and tax-exempt entities can leverage the federal Section 48 Investment Tax Credit (ITC), subject to statutory qualification tiers:
- Base Credit (6%): Standard base credit applicable without prevailing wage certification.
- Full 30% Tax Credit: Requires compliance with federal prevailing wage and registered apprenticeship requirements for projects 1 MW thermal capacity and greater.
- Bonus Adders (Up to 40%–50% Total): An additional 10% bonus applies for meeting Domestic Content requirements (100% US-manufactured steel/iron and specified equipment ratios), plus an additional 10% bonus for projects located in designated Energy Communities.
- Direct Pay for Non-Profits: Section 6417 allows tax-exempt schools, municipalities, and non-profits to receive the full credit as a direct cash refund from the IRS.
Specialized Service Capabilities Across New England
- Standing Column Well (SCW) Drilling: Deep open-loop bedrock boreholes maximizing thermal exchange density for compact urban lots and university campuses.
- Vertical Closed-Loop Borefields: Multi-borehole arrays with continuous IGSHPA-certified HDPE 4710 U-tubes and thermally enhanced bentonite grout.
- Formation Thermal Conductivity (TRT) Testing: Mobile 48-hour ASHRAE-compliant in-situ testing to optimize mechanical engineering loop design.
- Commercial Subcontracting: Turnkey exterior drilling partnering with mechanical HVAC engineers and general contractors.
- 2026 Clean Heat Incentive Support: Assisting clients in securing Mass Save grants ($13,500 standard / up to $25,000 enhanced), 0% HEAT Loans, and commercial clean energy tax credits.