We’re lucky to be living in Massachusetts’ North Shore, where being environmentally friendly is a win-win for your wallet as well as the planet. The state’s Mass Save program wants you to know that “electrifying your home can improve comfort, reduce the health risks of fossil fuels, and lower your carbon footprint.” And they’ll make it worth your while by offering a generous incentive to replace your outmoded heating system with a ducted or ductless air source heat pump.
Three municipal utilities in our area offer additional incentives for installing energy-efficient electric-powered heat pumps. There’s a federal tax incentive, too. It all adds up to a tall stack of greenbacks for going green.
Since 2008, Mass Save has reduced carbon dioxide emissions by 3.7 million metric tons — the equivalent of 795,650 cars off the road. It has also reduced electricity usage by 12.2 million megawatt hours. Large utility providers in the state sponsor Mass Save, and by paying the energy efficiency fees on your gas and electric bills, you contribute to the program’s success, too.
As a contractor in the Mass Save Heat Pump Installer Network, DeNardo Heating & Cooling has provided proof of U.S. Environmental Protection Agency (EPA) certification and insurance in the state and has completed the required heat pump installation training. When we replace your current heating system, we can walk you through the steps to obtain a seven-year, interest-free loan to finance the purchase.
If you remove or disable your pre-existing heating system and heat your home 100% with a mini-split or ducted air source heat pump that’s on Mass Save’s list, you’ll be eligible to receive a whole-home rebate of $10,000. If you meet certain income requirements, you might qualify for an enhanced incentive of up to $16,000.
An alternative that comes with a Mass Save partial home rebate of $1,250 per ton is to pair an existing air source heat pump with integrated controls that automatically switch to a fossil fuel heating system at a preset outdoor temperature. This way, you minimize the use of a boiler or furnace and maximize the use of a heat pump to achieve optimal comfort and savings.
The latest cold-climate heat pumps can heat two to four times as efficiently as a boiler or furnace at outdoor temperatures as low as -15°F. With the integrated controls plan, the required outdoor temperatures for switching systems are 30°F for oil or natural gas and 5°F for propane.
Reading Municipal Light Department (RMLD), which serves Reading, North Reading, Wilmington, and parts of Lynnfield, offers a rebate of $1,000 per ton with a cap of $6,000 per household. The system you choose must be on the Northeast Energy Efficiency Partnerships (NEEP) approved list, and the rebate may not exceed 50% of the original installation cost.
Peabody Municipal Light Plant (PMLP), which serves Peabody and parts of Lynnfield, offers a rebate of $400 a ton for a heat pump system with ratings of at least 16 SEER2 and 9 HSPF. SEER is the seasonal energy efficiency ratio, and HSPF is the heating seasonal performance factor.
Wakefield Municipal Gas and Light Department (WMGLD), which serves Wakefield, offers a rebate similar to RMLD’s for which the heat pump must be on the NEEP-approved list to qualify. Wakefield’s rebate is $500 a ton with a $2,000 cap.
The IRS offers an Energy Efficient Home Improvement Credit for qualifying property placed in service on or after Jan. 1, 2023, and before Jan. 1, 2033. The limit for heat pumps is $2,000 in any one year. Tax credits are also available for energy audits and energy-efficient doors and windows.
The credit has no lifetime dollar limit, but it is nonrefundable. That means you can’t get back more on the credit than you owe in taxes, and you can’t apply any excess credit to future tax years.
