Massachusetts Heat Pump Water Heater Rebates
Mass Save rebates for heat pump water heaters, ENERGY STAR certification requirements, and payback estimates for Massachusetts homeowners.
How much is the Mass Save rebate for a heat pump water heater?
Mass Save typically offers $500 to $1,500 rebates for qualifying heat pump water heaters, depending on your utility and equipment. The federal 25C tax credit adds up to $2,000 (30% of installed cost, capped annually). Combined, these rebates can significantly offset the $1,200–$2,200 premium over a standard electric water heater. ENERGY STAR certification is required for both rebates.
Current rebate snapshot
| Program | Amount | Requirement |
|---|---|---|
| Mass Save (via utility) | $500–$1,500 | ENERGY STAR certified, utility participation |
| Federal 25C Tax Credit | 30%, up to $2,000/yr | ENERGY STAR certified, own home |
| Combined max (estimated) | ~$2,500–$3,500 | Both programs stacked |
The 25C credit is annual and non-refundable. If you also install a heat pump space heater in the same tax year, the combined 25C cap for both is $2,000 total — not $2,000 each. Consult a tax professional.
Heat pump water heaters use 60–70% less energy than electric resistance models. After rebates, net cost premium is typically $200–$1,000 over a standard electric. Payback on that premium: 1–4 years in most cases.
Calculate paybackOnly ENERGY STAR certified heat pump water heaters qualify. Confirm your specific model is on the approved list before purchasing. Check the ENERGY STAR database ↗
Not a government website. Rebate rules can change — always verify eligibility with your utility or contractor before assuming you qualify.