If you’re thinking about installing a heat pump, changes coming in 2026 could affect how much money you can receive in incentives. Massachusetts is adjusting its heat pump programs, so understanding what’s changing can help you plan the timing of your upgrade and make the most of available financial support.
What’s Changing This Year
Heat pumps remain a key solution for reducing household emissions while providing efficient year-round comfort. They play an important role in both Newton’s local climate goals and the Commonwealth’s broader clean energy transition.
Reduced state rebates
Beginning in 2026, incentives offered through Mass Save® have been scaled back. While rebates are still available for both partial-home and whole-home heat pump installations, the total amounts are lower than in previous years and subject to tighter caps. For many households, this means smaller upfront savings compared with systems installed earlier.
-
Whole-home heat pump rebate: now $2,650 per ton, capped at $8,500
-
Partial-home heat pump rebate: now $1,125 per ton, capped at $8,500
-
Basic rebate: available at $250 per ton (up to $2,500) for smaller or supplemental installations
- Income-Based Enhanced Incentives Up to $16,000 or up to no cost through Turnkey Services*
*Talk to your Energy Advocate to guide you through this process
Federal incentives have expired
Federal tax credits that previously helped offset the cost of heat pump installations ended at the close of 2025. Unless new legislation is passed, homeowners installing systems in 2026 can no longer rely on federal support and must depend primarily on state and utility programs.
New focus on operating cost savings
To offset reduced rebates, Massachusetts utilities are rolling out discounted winter electricity rates for homes heated with heat pumps. These special rates aim to make heat pumps more affordable to run during cold months, when energy use is highest. Under the new seasonal heat pump rate, Eversource’s distribution charge for qualified heat pump customers drops to about $0.0205 per kWh in winter months compared with roughly $0.0626 per kWh under the standard rate, helping households save on electricity costs from November through April.
Why Timing Matters
With incentives shifting away from large upfront rebates and toward long-term energy savings, homeowners considering heat pumps may want to act sooner rather than later. Delaying installation could mean missing out on higher rebate levels that were available in earlier years.
What This Means for Newton
Heat pumps continue to support Newton’s efforts to lower emissions, reduce reliance on fossil fuels, and improve home comfort. Residents can still combine Mass Save rebates with home energy assessments, weatherization improvements, and utility programs to maximize savings and performance.
Getting Started
If you’re thinking about installing a heat pump:
-
Schedule a Mass Save Home Energy Assessment to confirm eligibility and identify efficiency upgrades.
-
Talk with qualified contractors about system options and installation timelines.
- Newton residents can also get free, unbiased guidance by connecting with Green Newton’s Energy Advocate or the City of Newton’s Energy Coaches, who can help homeowners understand incentives, compare options, and navigate next steps.
-
Find out how to enroll in heat pump electricity rate programs.
Even with changes to incentives, heat pumps remain one of the most effective ways to cut carbon emissions at home — and a smart investment in a cleaner, more resilient future for Newton.