Massachusetts Home Energy Rebates

Quick Facts

• Funding source: The federal Inflation Reduction Act allocated over $145 million to Massachusetts for HOMES performance rebates and $146 million for High-Efficiency Electric Home Rebates (HEEHR).
• Administering agencies: The Massachusetts Department of Energy Resources (DOER), Massachusetts Clean Energy Center (MassCEC), and the Mass Save utility program will coordinate implementation.
• Eligible participants: Homeowners, landlords, renters, and multifamily property managers across the Commonwealth.
• Key measures: Insulation, air sealing, heat pump HVAC, heat pump water heaters, induction cooking, panel upgrades, and wiring improvements.
• Strategic timing: Early preparation—energy assessments, contractor selection, and budgeting—positions you to capture funds as soon as the reservation system opens.

Program Overview

Massachusetts has long been a leader in energy efficiency, with Mass Save regularly ranking among the top utility-run programs nationally. The IRA rebates allow the state to push deeper into whole-home decarbonization while centering equity and affordability. DOER plans to leverage existing Mass Save infrastructure, including Home Energy Assessments, contractor networks, and QA/QC processes, to administer the new funding. Expect a streamlined customer journey where homeowners can access Mass Save incentives, federal tax credits, and IRA rebates through a single intake process.

Massachusetts will roll out the rebates in phases:

1. Pilot period: Targeted to environmental justice communities and low-income households to test workflows and ensure consumer protections.
2. Broad rollout: Once systems stabilize, the program will open to moderate-income households and market-rate customers, with specialized pathways for multifamily properties.
3. Ongoing adjustments: Incentive levels may shift annually based on participation rates, technology costs, and evolving building codes.

Eligibility Requirements

Property and Residency

• Residential buildings up to four units are eligible for both HOMES and HEEHR. Larger multifamily buildings will access tailored pathways with per-unit incentives.
• Renters can participate with landlord approval. The program encourages agreements that prevent displacement or rent spikes, aligning with Massachusetts housing policy priorities.
• Manufactured homes qualify if permanently affixed and separately metered.

Income Thresholds

• Low-income (≤80% AMI): Receive the highest rebate amounts, often eliminating out-of-pocket costs for electrification measures.
• Moderate-income (≤150% AMI): Eligible for significant rebates but may contribute a portion of project costs.
• Market-rate (>150% AMI): Can still access HOMES performance rebates tied to energy savings but may have lower incentive caps.
• Income verification methods include tax returns, W-2s, public benefit participation, or self-attestation with random audits.

Contractor Participation

• Contractors must be approved by Mass Save, MassCEC, or other DOER-recognized entities. They must complete training on IRA rebate rules, consumer protection requirements, and reporting.
• Projects may need to meet specific design criteria (e.g., Manual J/S/T calculations for heat pumps, balanced ventilation standards) and pass quality inspections.

Incentive Amounts

HOMES Whole-Home Rebates

• Incentives scale based on percentage energy savings. Low-income households achieving 35% savings may receive up to $8,000 per home; moderate-income households can receive up to $4,000; market-rate customers may receive $2,000–$4,000 depending on savings tiers.
• Savings can be calculated via modeled (pre-retrofit simulation) or measured (meter-based) pathways. Mass Save’s Home Energy Assessments provide the modeling foundation.
• Additional bonuses may reward projects that electrify space heating, integrate demand-response controls, or include envelope upgrades that exceed code.

HEEHR Appliance Rebates

• Heat pump HVAC: Up to $8,000 for low-income households, $4,000 for moderate-income households.
• Heat pump water heaters: Up to $1,750.
• Induction ranges and electric cooktops: Up to $840.
• Heat pump clothes dryers: Up to $840.
• Insulation and air sealing bundles: Up to $1,600.
• Electrical panel and wiring upgrades: Up to $4,000.
• Household cap is $14,000, but multifamily properties may access per-unit caps.

Application Process

1. Book a Mass Save Home Energy Assessment: This no-cost visit identifies efficiency opportunities, provides direct-install measures (LEDs, thermostats), and generates a custom report. The assessment is mandatory for many Mass Save incentives and will likely serve as the entry point for IRA rebates.
2. Develop a project plan: Using the assessment report, prioritize measures that maximize energy savings and align with your budget. Consider bundling envelope work before installing heat pumps to reduce system size requirements.
3. Collect income documentation: Gather tax returns, pay stubs, or benefit letters. Mass Save may also accept participation in programs like SNAP, Fuel Assistance, or MassHealth as proof for low-income eligibility.
4. Select qualified contractors: Use the Mass Save contractor directory. Obtain multiple bids to compare scope, equipment efficiency ratings, and customer service track records.
5. Reserve funds: Contractors will submit project details to Mass Save’s portal to lock in rebate amounts. Confirm reservation expiration dates and start work promptly to avoid losing funds.
6. Execute upgrades: Ensure contractors pull permits, schedule inspections, and comply with state building codes. Take before-and-after photos documenting improvements.
7. Complete post-installation verification: Many projects require blower-door tests, commissioning reports, or Quality Assurance inspections. Respond quickly to scheduling requests.
8. Receive rebates: Payments may flow as instant discounts, contractor reimbursements, or mailed checks. Track all paperwork for tax purposes and future audits.

Documentation Checklist

• Home Energy Assessment report
• Signed contractor proposals and itemized invoices
• Equipment specification sheets (AHRI ratings, ENERGY STAR certifications)
• Proof of income and residency
• Permits and inspection sign-offs
• Photos of installed equipment and removed fossil-fuel systems
• Utility bills (pre- and post-upgrade) if participating in measured savings pathway
• Financing documents if using the Mass Save HEAT Loan or other loans

Integrating with Other Programs

• Mass Save Rebates: Continue to claim standard Mass Save incentives (e.g., $10,000 for whole-home heat pumps) in addition to IRA rebates. Programs will coordinate to avoid duplicative payments.
• HEAT Loan: A 0% interest financing option up to $50,000 for eligible improvements. Pairing HEAT Loans with IRA rebates can eliminate upfront costs.
• Solar incentives: If adding solar PV or battery storage, explore the SMART program, ConnectedSolutions demand response, and federal ITC stacking opportunities.
• Weatherization Assistance Program: Low-income households can access no-cost weatherization first, then use HEEHR rebates for electrification.
• Municipal aggregators: Communities with municipal light plants may offer complementary incentives. Check with your local utility for participation.

Special Considerations for Multifamily Buildings

• Property owners should conduct whole-building energy assessments and plan phased upgrades to minimize tenant disruption.
• Income eligibility may rely on rent rolls, regulatory agreements, or Area Median Income calculations for each unit.
• Tenant engagement is critical: provide multilingual notices, host meetings, and outline how upgrades improve comfort and health.
• Coordinate with affordable housing funders (MassHousing, DHCD) to ensure projects align with compliance requirements and capital plans.

Strategies to Maximize Benefits

• Sequence projects for load reduction: Address insulation and air sealing first to lower heating/cooling loads, enabling smaller heat pump systems and higher HOMES savings.
• Plan for electrical capacity: Evaluate panel capacity and service lines. If upgrades are required, integrate them into your rebate strategy.
• Include ventilation upgrades: Heat pump installations should pair with balanced ventilation (ERV/HRV) to maintain indoor air quality.
• Use smart controls: Install smart thermostats, load controls, and water heater timers eligible for bonus incentives and demand-response programs.
• Document health benefits: For households with asthma or respiratory issues, track improvements after electrification to support potential healthcare partnerships.

Example Household Paths

• Boston Triple-Decker: A landlord serving three low-income families partners with a community development corporation. They insulate the building, install cold-climate heat pumps, and upgrade the electrical service. IRA rebates, Mass Save incentives, and ARPA-funded grants cover 95% of costs. Renters receive portable induction cooktops during construction and maintain regulated rents.
• Western Mass Single-Family Home: The Smith family replaces an oil furnace with a whole-home heat pump, adds cellulose insulation, and installs an ERV. Their income at 120% AMI qualifies them for moderate-tier rebates totaling $9,500. The HEAT Loan covers the remaining $12,000, repaid over seven years using utility savings.
• Cape Cod Vacation Rental: While primarily a secondary home, the owner qualifies for HOMES rebates after modeling a 25% energy reduction. They coordinate with local historic commissions to preserve exterior aesthetics and install a heat pump water heater in an outbuilding.

Addressing Common Barriers

• Older homes with knob-and-tube wiring: Mass Save and MassCEC are exploring grants to remediate wiring so insulation can be safely added. Document hazards during assessments to access additional funding.
• Limited contractor availability: Demand for heat pump installers is high. Book early, consider off-season projects, and verify contractors’ capacity before signing agreements.
• Tenant concerns about rent increases: Develop written agreements ensuring that rebate-funded improvements will not trigger unjustified rent hikes. Explore frameworks like “Tenant Benefit Agreements” promoted by local housing advocates.
• Split incentives in rental housing: Offer performance-based leases where owners share utility savings with tenants or explore on-bill repayment models.

Frequently Asked Questions

• When will applications open? State agencies project late 2024 for initial pilots and 2025 for full rollout. Subscribe to Mass Save and MassCEC newsletters.
• Do rebates reduce federal tax credit eligibility? Tax credits apply to net costs after rebates. Keep invoices showing how rebates were applied.
• Can DIY projects qualify? Most measures require professional installation. Some appliance rebates might allow retailer-managed discounts, but confirm eligibility before purchasing.
• How long will funds last? Funding extends through 2031, but high demand may exhaust allocations sooner. Reserve funds early and track program updates.
• Is landlord participation mandatory for renters? Yes, major upgrades require owner approval. Encourage landlords by presenting financing options and highlighting property value gains.

Additional Resources

• Massachusetts Home Electrification and Appliance Rebates
• Mass Save Rebates and Incentives
• Mass Save HEAT Loan Program
• MassCEC Whole-Home Heat Pump Pilot
• DOER Energy and Environmental Affairs Updates
• Clean Energy Lives Here Campaign