What’s Changed in 2025?
Rebate Structure Updates
Whole-Home Air-Source Heat Pump (ASHP) rebates are now calculated at $3,000 per ton, with a maximum cap of $10,000 per home. Installations must occur between January 1 and December 31, 2025.
Partial-Home (Supplemental) ASHP rebates remain at $1,250 per ton, with eligibility up to $10,000.
For Ground-Source (Geothermal) Heat Pumps, homeowners can receive:
Whole-Home: $15,000 per home
Partial-Home: $2,000 per ton, up to $15,000
Income-Based Enhanced Rebates
Eligible moderate- and low-income households may qualify for enhanced rebates of up to $16,000 for whole-home installations.
How the HEAT Loan Works in 2025
0% Interest Financing
The Mass Save HEAT Loan offers 0% interest financing for qualifying home energy upgrades—including heat pumps, insulation, and more—with financing available up to $25,000.
Loan terms can extend up to 7 years, depending on household income and lender policies.
Loan Term Adjustments
There are discussions about shortening loan terms in late 2025 for higher-income households (such as 5-year or even 3-year terms for certain income brackets), though these are not yet confirmed.
Why 2025 Is a High-Savings Window
Rebates are scheduled to shrink in subsequent years; for example, projected to drop to $2,700/ton in 2026 and $2,500/ton in 2027 for whole-home heat pumps.
Acting in 2025 is especially advantageous, offering the maximum rebate return before reductions take effect.
Combining Savings: Rebates + HEAT Loan + Federal Tax Credits
Here’s how a typical financing stack might look:
| Component | Potential Savings |
|---|---|
| Mass Save Rebate | Whole-home: up to $10,000 (ASHP) |
| Income-Based Enhancement | Up to $16,000 (if eligible) |
| Federal Tax Credit (25C) | 30% of cost after rebate, up to $2,000/year |
| HEAT Loan | 0% interest financing, up to $25,000 |
Together, these incentives can drastically cut your net installation cost.
Eligibility & Requirements You Should Know
To qualify, homes must displace heating from oil, propane, natural gas, or electric resistance with heat pumps.
Weatherization (insulation, air sealing) may be required—especially for whole-home installations.
Installations must be performed by a contractor in the Mass Save Heat Pump Installer Network.
Certain properties, such as 5+ unit buildings, may still qualify if each unit is separately metered and meets whole-home criteria.
Submission deadline: rebate forms and documentation must be submitted by February 28, 2026.
Step-by-Step Guide for Homeowners
Step 1: Schedule a Free Home Energy Assessment
Mass Save offers no-cost assessments to identify necessary improvements and eligibility for rebates or financing.
Step 2: Work with a Certified Contractor
Select a contractor from Mass Save’s network. Ask for multiple proposals. The installer can help with equipment selection and paperwork.
Step 3: Apply for HEAT Loan (if needed)
Complete the application using the intake form from your assessment. If approved, apply with a participating lender to obtain the loan check.
Step 4: Install & Submit Rebate Documents
After installation, submit the rebate form and required documents before the February 2026 deadline. Allow 6–8 weeks for processing.
Key Takeaways for 2025 Homeowners
Act now to maximize savings before rebate levels decline in future years.
Stack rebates, tax credits, and 0% financing to manage costs effectively.
Fulfill requirements: weatherization, installer certification, documentation—all are essential.
Stay informed: Loan terms may evolve—keep an eye on official Mass Save announcements.
2025 is shaping up as a prime year for Massachusetts homeowners to electrify their heating systems with generous whole-home rebates, significant income-based enhancements, 0% financing, and federal tax credits all on offer. Whether you're upgrading a corner of your home or planning a full replacement, following the right process can mean comfort, long-term savings, and a smaller carbon footprint all while keeping short-term budgets manageable.
The Home Mechanics Experience
Quality workmanship: Every member of our team works hard to make sure each install goes according to plan.
“The whole process with Home Mechanics exceeded expectations. Installers were prompt, polite, clean, and did a great job. Communication with Carolyn from the the office was flawless. I almost went with another contractor but commumnication was poor, price was vague and higher, and I felt like they were selling me a car. Highly recommend Home Mechanics!!” — Bob Foley
“This was the easiest and honest company I ever dealt with . Matt bonagura was the best he came and gave my a quote. He was honest and upfront. After he gave me a quote he answered every phone call and answered every question I had. Noel is the owner he is upfront and honest also. Carolyn was great to deal with she was pleasant on every phone call. The crew that installed my unit was professional and there work was impeccable. From start to finish this company was the best company I ever dealt with... highly recommend AAAA+” — Tommy Henderson
Customer satisfaction: Our Google rating is 5 stars from more than 30 reviews provided by clients. Here’s one recent example:
“I was extremely pleased with this company. The customer service was able to answer all of my questions with clear explanations and made the process easier than I anticipated. The installation team was very professional and worked diligently through extreme weather conditions to finish my whole home project in a timely manner. I highly recommend them !” — Lisa Silva
Financing options: We’ll help you get the most out of Mass Save energy incentives and federal tax credits you may be eligible for.
“Home Mechanics installed mini-split heat pumps in my apartment. They were very professional in every way. Carolyn Cutting helped me apply for the incentives and answered any questions. I highly recommend this firm.” — Kathy Modigliani
“Great company to do business with. On time professional. All work was performed as expected and job site was left immaculate. Guided us thru the process of rebates and no interest loans with ease.” — Michael Swansey
Before you do anything, get a no-cost Home Energy Assessment courtesy of Mass Save. These approved home energy contractors will come out and identify all of the places your home is wasting energy.
They will introduce you to new ways of conserving energy at home — including ductless heat pumps and mini-splits — because Mass Save offers big rebates when you replace old school central AC with modern low-energy alternatives in Massachusetts.