Heat Pump Rebate Program

About Heat Pumps:

Heat pumps provide all-in-one heating and cooling and offer cost savings, improved efficiency, and reduced carbon emissions compared to traditional oil, propane or electric resistance systems. 

• Receive up to $8,500 in rebates:
  • If you primarily heat your home using a natural gas boiler or furnace (i.e., you are a National Grid gas customer), get your rebate from MassSave®; OR
  • If you primarily heat your home using an oil or propane boiler or furnace, and/or electric resistance (baseboard) or heat pumps, see below to learn more about and apply to the WMLP's rebate program.
• For heat pump systems installed before December 31, 2025:  Save up to an additional $2,000 through federal tax credits.  See also IRS.
  • Please also note that due to the enactment of the One Big Beautiful Act (OBBA) on July 4, 2025, the WMLP understands, but does not affirm, that in order to qualify for the federal tax credit, residential heat pump projects must be completely installed, pass inspections, placed into service, and paid for by December 31, 2025.  
• Enjoy cleaner, quieter, more comfortable heat and AC
• Improve efficiency of heating and cooling your home and lower annual energy costs
• Increase your home resale value
• Reduce your carbon footprint by >40%
• Get no-cost technical assistance to help with:
  • Getting started;
  • Finding contractors;
  • Choosing the best quote.

WMLP's Heat Pump Rebate Program

(for WMLP customers whose primary heating system is fueled by oil, propane, or electricity (baseboard or heat pumps)):

This program provides financial rebates and unbiased, personal, expert advice available to customers who install a central or mini-split heat pump system in their home. WMLP’s heat pump rebate program is being administered by Abode Energy Management.

Whole-Home Heat Pump System Rebate: WMLP offers an $8,500* rebate to customers who: 1) install a new heat pump system that provides between 90% and 120% of their home heating load; and 2) remove and decommission their existing fossil fuel and/or electric resistance heating system. Customers who choose to retain their existing system (e.g., for backup heat or for hot water) are eligible for a lower $6,500 rebate. 

Partial Home Rebate: WMLP offers a rebate of $1,125 per ton* up to $5,000 for new heat pump system(s) providing less than 90% of home heating load.

Basic Rebate (new for 2026): WMLP offers a rebate of $500 per ton* up to $2,500 for replacing an existing HP or installing a HP in a new addition or previously unconditioned space (e.g., attic or basement) that is less than 500 square feet.

WMLP Heat Pump Rebate Application Process 

Follow the steps outlined on Abode Energy's rebate application webpage for the WMLP.  In addition, please note the following:

• In order to be eligible for the whole-home heat pump rebate,, a Home Energy Assessment (HEA) is required within the past 3 years if your home was built before 2013.
• Follow the HEA's recommendations to weatherize your home, which should be done in conjunction with your heat pump project.  The WMLP provides an increased weatherization rebate of 75% of weatherization project cost up to $3,000 (instead of $2,000) if completed within six months of a qualifying whole-home heat pump installation.
• Whole-home, partial-home, and basic heat pump systems must be listed on NEEP ccASHP List.
• Customers and their installers are responsible for securing the requisite permits from the Town's Building Department.  Final rebate approval is conditional on the satisfactory passing of Town inspections.  HEAT PUMP PROJECTS REQUIRE BUILDING, ELECTRICAL, AND FOR ANY DUCTWORK, SHEET METAL PERMITS.
  

**REBATE CHANGES FOR 2026**

We are changing some of our rebate offerings to reflect our evolving vision of how to best support customer adoption of technologies that directly lower greenhouse gas emissions while keeping our electric rates low.

In line with the 2026 Mass Save® program offering (for natural gas-heated homes), we are adjusting our rebates (for oil-, propane-, and electric-heated homes) for whole-home and partial-home HPs. We are also introducing a new “basic” rebate tier for replacing an existing HP or installing a HP in a new addition or previously unconditioned space (e.g., attic or basement) that is less than 500 square feet.

Summary of Changes

• Whole-Home Heat Pump Rebates will decrease from $10,000 to $8,500 if decommissioning existing system and from $8,000 to $6,500 if not.
• Partial-Home Heat Pump Rebates will change to a per-tonnage basis (rather than a fixed amount per outdoor condenser unit) of $1,125 per ton* up to a maximum of $5,000.
• NEW – Basic Heat Pump Rebate of $500 per ton* up to $2,500 for:
  • New additions less than 500 sq. ft.
  • Previously unconditioned space less than 500 sq. ft. (e.g., attic or basement)
  • Replacing existing heat pumps
  • New construction and additions equal to or greater than 500 sq. ft. are not eligible.
• Weatherization – We are raising our rebate to 75% of insulation and air sealing costs up to $2,000 ($3,000 with the installation of a qualifying whole-home heat pump system).
• All rebate changes take effect January 1, 2026. Rebate eligibility based on application date.

Grace Period

The WMLP will honor 2025 Whole-Home Heat Pump Rebate levels ($10,000 if decommissioning existing heating system, $8,000 if not) for applications submitted by February 28, 2026.

For all other heat pump and weatherization projects the WMLP will compute and honor the higher of the 2025 & 2026 rebate amounts for applications submitted between January 1, 2026 and February 28, 2026.

*Tonnage is defined as the heat pump’s rated cooling capacity at 95 degrees Fahrenheit, per the Air-Conditioning, Heating, & Refrigeration Institute (AHRI). Heating and cooling capacities are often listed in British thermal units (BTUs). To convert BTUs to tons, divide by 12,000 (eg. 36,000 BTUs = 3 tons).

 Summary of WMLP's Heat Pump Rebate Program

Program Eligibility Requirements

1. Customer must have an active electric account on the residential service rate that is in good standing with the WMLP (at least 6 months of satisfactory payments with no past due balance at time of application AND when the rebate is issued) and must not have any municipal tax liens on the property or service address. Newer customers who have less than 6 months of satisfactory payment history with the WMLP may provide a letter or a copy of bill statements from their previous electric utility.
2. The qualifying heat pump system must be installed at the account’s service address, where the primary heating fuel must currently be oil, propane, or electricity (i.e., not natural gas).  For the whole-home heat pump rebate, the new heat pump system must be used as the primary heating system.
3. Only new equipment is eligible for the rebates. Leased equipment and equipment included in the purchase of a residence are not eligible for the rebates.
4. New construction projects are ineligible for WMLP rebates, including new additions equal to or greater than 500 sq. ft. and major or gut renovations where the equipment is needed to comply with the current building code.
5. For the whole-home heat pump rebate, the application must be submitted before project installation and the Post-Installation QA Form must be submitted within 12 months of receiving Abode’s approval of the application.  The rebate in effect at the time the application was submitted shall apply.  The WMLP may grant extensions on a case-by-case basis.
6. For the partial-home and basic heat pump rebates, the application and Post-Installation QA Form must be submitted within 6 months after project installation.
7. Any false, fraudulent, or incorrect information provided on the application, Post-Installation QA Form, or any of the attachments is grounds for non-payment or return of any rebates, and suspension or termination from future WMLP programs.
8. Final approval of the rebate is conditional on the customer’s installer or contractor completing, signing, and submitting the requisite Post-Installation QA Form after installation, which will be reviewed by the WMLP and Abode to verify that all necessary Town inspections (e.g., building, electrical, sheet metal) passed and all program requirements were met.
9. The customer is responsible for obtaining pricing, selecting a contractor/installer, coordinating contractor/installer scheduling, and making payments to the contractor/installer.
10. The new heat pump system(s) must meet the technical and efficiency requirements established by Abode Energy Management (e.g., NEEP Cold Climate Air Source Heat Pump List with an active AHRI certificate).  For the whole-home heat pump rebate, the heat pump system must be sized to provide 90% to 120% of the home’s heating requirements within the entire conditioned/living space at the installation address, as demonstrated by a Manual J heat load calculation with the specified outdoor design temperature (e.g., 9 degrees Fahrenheit).
11. All outdoor units must be mounted on stands providing at least 12 inches of ground clearance (unless shielded from snowfall).
12. Customer’s heat pump system must pass all requisite building, sheet metal, and electrical inspections and approval processes and requirements.
13. For the whole-home heat pump rebate, if the home was constructed before January 1, 2013, customer must have received a home energy assessment within the past 3 years and before the heat pump system is installed.
14. For the higher whole-home heat pump rebate, installer must attest on the Post-Installation QA Form that the existing heating system was decommissioned or removed.
15. To receive the increased weatherization rebate, the weatherization work must be completed within 6 months of installing a qualifying whole-home heat pump system.
16.  WMLP reserves the right to verify or inspect completed heat pump installations (and if applicable, the decommissioning or removal of pre-existing heating systems) for which a rebate is requested or was issued.
17. If it is found that the whole-home heat pump system installed through this program is not being used as the primary heating system, the WMLP will apply a charge to the customer's account that is equal to the difference between the whole-home and partial-home rebates.
18.  Customers are subject to the rebate limits specified above (one (1) whole-home rebate OR up to two (2) partial-home or basic rebates, not both).
19. WMLP reserves the right to modify, suspend, or terminate these rebates at any time.
20.  WMLP rebate will not exceed the heat pump project’s total installation costs.
21.  The WMLP will issue the rebate in the form of a check mailed to the customer’s mailing address on record. Please allow 6 to 8 weeks for processing.
22.  Neither the Wellesley Municipal Light Plant (WMLP), Center for EcoTechnology (CET), Abode Energy Management (Abode), their agents, or employees shall be liable for any claims, loss, expenses, or injury whatsoever for work performed under the Agreement. WMLP, CET, and Abode make no and have not made any warranties or representations, express or implied, and do not hereby claim any representation, warranty, or covenant as to the design, installation, fitness for any particular purpose, merchantability, condition, quality, performance, durability, or suitability of the equipment (or any installation of installer thereof), or the work in any respect. WMLP, CET, and Abode do not endorse, guarantee, or warranty the equipment, work, or any particular contractor, vendor, manufacturer, or product. WMLP, CET, and Abode do not make any representation of any kind regarding the results to be achieved by the equipment or work or its adequacy and safety. Customer acknowledges that the calculations of potential savings associated with the equipment or work are estimates only and are not guaranteed.

Resources

View these Educational Videos to help with your decision to install Heat Pumps in your home: 

• Watch the March 21, 2024 webinar: “Clean Heating and Cooling for Your Home

 Pre-Installation

• Start Your Heat Pump Journey Video
•  Heat Pump Economics in Massachusetts Video
•  Air Source Heat Pumps Sizing and Design Video

 Post Installation

• How to Use your Heat Pump Video

Program Changes

12/2/25 Update: Added Rebate Changes for 2026. 

7/8/25 Update: Added WMLP's understanding of the OBBA's enactment on the federal tax credit for heat pumps.

6/5/25 Update:  Whole-home heat pump rebate of $10,000 if the existing heating system is removed or decommissioned, or $8,000 if it is not is extended through the end of 2025 instead of changing to $8,000 and $6,500, respectively, effective July 1, 2025.

1/3/2025 Update: The WMLP's current Heat Pump Rebate program became effective August 15, 2024.  The WMLP's policy addressing the transition from its old rebate program to this current rebate program required customers who had already initiated their heat pump installations to apply through the WMLP’s old heat pump rebate program and complete their installations and submit their rebate applications and post-installation QA forms by December 31, 2024.  Customers who had not yet initiated their heat pump installations as of August 15, 2024 could have applied for the WMLP’s: 1) new heat pump rebate program; or 2) old heat pump rebate program, provided they complete their installations and submit their rebate applications and post-installation QA forms by December 31, 2024.