Mass Save Heat Pump Installer Network Heating and Cooling Updates For 2025: Important Changes

This briefing document from Mass Save details 2025 updates to their heat pump installer network. Key updates include proposed residential heat pump rebates and loan programs with varying incentive amounts based on system type and home size. Data on 2022-2024 heat pump installations and loan amounts are presented. Additional incentives are offered for water heaters, insulation, and other energy-efficient upgrades, along with tax credits and low-interest financing. For those interested, you can listen to a summary of the details by clicking the green play button on the right sidebar.

‍

I. 2022-2024 Program Performance & Loan Statistics:

Heat Pump Installations: A combined total of over 50,000 heat pumps have been installed from 2022-Q2 2024. This includes full displacement, partial displacement, heat pump water heaters, and commercial installations.

II. Proposed 2025 Program Updates:

• Residential Heat Pump Rebates: A tiered rebate system is proposed, offering higher incentives for whole-home air source heat pumps (ASHPs) and ground source heat pumps (GSHPs). Rebates will vary based on fuel type being replaced.
• Residential HEAT Loan: Provides up to $25,000 in 0% interest financing for eligible energy-efficient home upgrades. Loan terms are dependent on the applicant's State Median Income (SMI). 

III. Here are some Mass Save initiatives that incentivize heat pump adoption:

• Rebates: Mass Save offers rebates for qualifying heat pump installations in residential and commercial settings.
  
  
  • Residential Rebates: These rebates range from $250/ton to $15,000 per home, depending on the type of heat pump and the extent of the installation (partial-home or whole-home).
  • Commercial Rebates: Rebates for commercial installations are calculated per ton and vary based on the heat pump type: $2,500 per ton for Air Source Heat Pumps, $3,500 per ton for Air Source Variable Refrigerant Flow (VRF), and $4,500 per ton for Ground Source Heat Pumps.
    ‍
• HEAT Loans: Mass Save offers 0% interest financing for eligible energy-efficient home upgrades, including heat pumps, up to $25,000. Loan terms range from 3 to 7 years, depending on the applicant's household income relative to the state median income (SMI).
  
  
  • Households earning between 81% and 135% of SMI have access to 7-year repayment terms.
  • Households earning between 135% and 300% of SMI qualify for 5-year loan terms.
  • Households exceeding 300% of SMI can access 3-year loan terms.
    ‍
• No-Cost Turnkey Delivery: Mass Save provides no-cost air source heat pumps for households with income up to 80% of AMI/SMI. This initiative covers weatherization and pre-weatherization barrier mitigation, including electric panel upgrades to prepare for electrification.
  
  
• Multi-Family Incentives: Mass Save offers a 0% interest HEAT loan program for residentially metered condo units in buildings with 5+ units. The program also provides additional energy efficiency incentives and opportunities for insulation and air sealing in multi-family buildings.
  
  
• Tax Credits: While not directly administered by Mass Save, the program highlights the availability of IRA Tax Credits for qualifying electrification upgrades, including heat pumps. These credits can significantly reduce the cost of heat pump installation.
  
  
  • The 25C tax credit offers $2,000 annually, with $2,000 allocated specifically for heat pumps and HPWHs.

It's important to note that program details and eligibility requirements for these Mass Save initiatives may change. To learn more about specific program offerings, it is recommended to visit MassSave.com.

VI. Q&A and Contact Information:

Q: How do we navigate a situation where a customer is applying for/is approved for the HEAT Loan before 12/31 (and Clearsult assumes $10k rebate) but install will happen in January when the new rebate per ton on the whole home kicks in and that rebate might drop to say $8k as a result?
A: Please make clear on the proposal that this will be a 2025 install. Additional details on the HEAT Loan transition will be made available in the coming weeks.

Q: How do multi-family units qualify if one of the tenants is on fuel assistance?
A: If 50% or more of the units are low-income, all units should go through CAP. If less than 50% of the units are low-income, non-low-income units should be served through the market rate program, and low-income units should be served through CAP.

Q: For 5+ unit dwellings, will each unit qualify for the $10k whole home rebate? Meaning a 5-unit dwelling will qualify for $50k rebate in total?
A: If the units are individually metered, potentially yes, as long as the conditions in the "Mass-Save-Whole-Home-Verification-Form_2024" are met.

Q: Do you have to get the customer installed by 12/31/24 to keep the $10,000 rebate amount? If installed after that date, they would default to the new full-load rebate requirements. Correct?
A: This is correct. The 2024 program offer is only valid for projects installed by 12/31/2024.

Q: Is there a cap on the $250 per ton ASHP installs?
A: There is no cap on this incentive.

‍

Overall, the presentation highlights the continued efforts by Mass Save to promote heat pump adoption across residential, multi-family, and commercial sectors. The proposed 2025 updates include a combination of financial incentives, streamlined processes, and technical guidelines to encourage widespread electrification of heating and cooling systems.