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 2023 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 2023 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 2023 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 2023 for households at certain income levels
Induction CookingInduction Cooking RebatesFederal IRA Rebates coming in 2023 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 $1,000
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 2023 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)

More Info

Ground-Source Heat Pumps

$18,500*

More Info

Automated Wood Heat

$20,000*

More Info

Solar Hot Water

$6,900*

More Info

Heat Pump Water Heater

$2,000*

More Info

Solar Electricity

$17,000**

More Info

*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.

There may be additional Mass Save® incentives available for specific project types (i.e. new construction, renovations, additions).
Other good sources of incentive information are:

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

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Request a Consultation from a Certified Professional

Find an Installer

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.

I’m on board!

Contact Ground-Source Heat Pump Installers

We recommend selecting ground-source heat pump installers from the Mass Save Heat Pump Installer Network (HPIN).

Customers of Berkshire Gas, Cape Light Compact, Eversource, Liberty Utilities, National Grid, and Unitil are eligible for Mass Save ground-source heat pump rebates and financing offers, which are accessed by using an HPIN installer.

Customers of Municipal Light Plants (MLPs) can also use installers in the HPIN, though rebates and financing offers will be determined by your MLP.

Go to Heat Pump Installer Network

Contact Heat Pump Water Heater Installers

We recommend selecting heat pump water heater installers from the Mass Save Heat Pump Installer Network (HPIN).

Customers of Berkshire Gas, Cape Light Compact, Eversource, Liberty Utilities, National Grid, and Unitil are eligible for Mass Save heat pump water heater rebates and financing offers, which are accessed by using an instant rebate process or an HPIN installer.

Customers of Municipal Light Plants (MLPs) can also use installers in the HPIN, though rebates and financing offers will be determined by your MLP.

Go to Heat Pump Installer Network

Start Weatherization With A Home Energy Assessment (HEA)

Residents of Cape Cod and Martha’s Vineyard

No-cost HEA available

Go to Cape Light Compact

Customers of Municipal Light Plants

Check your MLP’s website

Find Your MLP

All other Residents

No-cost HEA available

Go to Mass Save®

Contact Air-Source Heat Pump Installers

We recommend selecting air-source heat pump installer from the Mass Save Heat Pump Installer Network (HPIN).

Customers of Berkshire Gas, Cape Light Compact, Eversource, Liberty Utilities, National Grid, and Unitil are eligible for Mass Save air-source heat pump rebates and financing offers, which are accessed by using an HPIN installer.

Customers of Municipal Light Plants (MLPs) can also use installers in the HPIN, though rebates and financing offers will be determined by your MLP.

Go to Heat Pump Installer Network

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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