INCENTIVES

FEDERAL, STATE, AND MASS SAVE INCENTIVES AVAILABLE IN 2023 BY CLEAN ENERGY SOLUTION


Mass Save

Mass Department of Energy Resources (DOER)

Federal Tax Credits

Mass State Tax Credits

Financing Options

Other
Air-Source Heat PumpsElectric Heating and Cooling RebatesAlternative Energy Certificates (AECs)Federal Tax  Credits of 30% up to $2,000/year 2023 – 2032Mass Save HEAT LoanFederal IRA Rebates coming in 2025 for households at certain income levels
Automated Wood HeatAlternative Energy Certificates (AECs)26% for systems installed through 2022 and 22% for systems installed through 2023; consult IRS websiteMass Save HEAT Loan
Battery-Powered Outdoor EquipmentOutdoor Battery-Powered Equipment Rebates
Battery StorageConnectedSolutionsSMART Battery Adder

Clean Peak Energy Standard

30% Federal Tax Credits for Battery Storage installed 2023 – 2032
Electric VehicleFederal Tax Credits for New All-Electric and Plug-in Hybrid VehiclesMOR-EV

Municipal EV Programs

Electric Service UpgradeFederal Tax Credits of 30% when accompanying solar electricity or up to $600 when accompanying heat pumps 2023 – 2032Federal IRA Rebates coming in 2025 for households at certain income levels
Ground-Source Heat PumpsElectric Heating and Cooling RebatesAlternative Energy Certificates (AECs)30% Federal Tax Credits for systems 2022 – 20326.25% Massachusetts Sales Tax ExemptionMass Save HEAT Loan
Heat Pump Clothes DryersENERGY STAR® Clothes Dryer RebatesFederal IRA Rebates coming in 2025 for households at certain income levels
Heat Pump Water HeaterElectric Heat Pump Water Heater RebatesFederal Tax  Credits of 30% up to $2,000/year 2022 – 2032Mass Save HEAT LoanFederal IRA Rebates coming in 2025 for households at certain income levels
Induction CookingInduction Cooking RebatesFederal IRA Rebates coming in 2025 for households at certain income levels
Solar ElectricitySolar Massachusetts Renewable Target (SMART)30% for systems installed 2022 – 203215% of the system cost as a state tax credit, up to $1,000Solar For All incentives coming in late 2024 for households at certain income levels
Solar Hot WaterAlternative Energy Certificates (AECs)30% for systems installed 2022 – 203215% of the system cost as a state tax credit, up to $1,000Mass Save HEAT Loan
WeatherizationWeatherization RebatesFederal Tax Credits of 30% up to $1,200/year 2023 – 2032Federal IRA Rebates coming in 2025 for households at certain income levels

EXAMPLE COST AFTER INCENTIVES

Estimates include equipment and installation for a 2,000 square foot MA home.

Air-Source Heat Pumps

$12,000*
(whole home)

Ground-Source Heat Pumps

$18,500*

Automated Wood Heat

$20,000*

Solar Hot Water

$6,900*

Heat Pump Water Heater

$2,000*

Solar Electricity

$17,000**

*The average cost after incentives is an estimate based on a 2,000 square foot MA home and includes applicable 2023 Federal and State tax credits and 2023 Mass Save® rebates. Actual project costs may vary.

**The estimated cost of solar PV is based off actual MA projects from 2019 – 2021 and includes 2023 Federal and State tax credits. The average single family system size in Massachusetts is 7-8 kW DC. Over the lifetime of the system, additional revenue can be generated through energy savings or other incentive programs such as the SMART program. Please visit MassCEC’s Solar Cost Comparison Tool for examples of residential solar installations from 2001 – 2021.

UNDERSTANDING YOUR IMPACT

Get a better understanding of the environmental impact and operating costs of your current heating solution as compared to clean heating technologies.

ENVIRONMENTAL IMPACT

This graph shows the carbon emissions produced by heating a standard 2,000 square-foot (SF) Massachusetts home using traditional as compared to clean technologies, assuming either today’s electric grid or a 100% renewable grid.

Greenhouse Gas (GHG) Emissions for Heating a Standard 2,000 SF Home

  • 2020 Electricity Grid
  • 100% Clean Electricity Grid
    • An individual homeowner can achieve a high percent of clean electricity today by installing solar PV and/or by purchasing electricity sourced from renewables.
    • To achieve Massachusetts’ Net Zero by 2050 goal, the utilities in Massachusetts will increase their purchase of clean electricity in the coming decades.

OPERATING COSTS

The graphs represent the annual heating operating cost for a standard 2,000 SF home heated by fossil fuels as compared to clean energy technologies.

*Please note that prices and performance may vary by year, system, and home weatherization level. Homeowners who install air-source heat pumps or ground-source heat pumps, which also provide cooling, can also expect to save 30% – 50% on cooling costs as compared to a standard central air-conditioning system.

Explore Clean Energy Solutions for Your Home

Learn More

Schedule a Mass Save® Energy Assessment to Get Started

Request a Consultation from a Certified Professional

We’re In This Together

Pledge to reduce your home’s carbon footprint by replacing old systems and appliances with clean energy technologies over time.

Join the Clean Energy Transformation

Let's work together to reduce greenhouse gas emissions from our homes and build a clean energy future for Massachusetts.

GO CLEAN
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