Incentives For Ground-Source Heat Pumps
Economics & Incentives
Although the installation costs can be substantial, a combination of incentives and low-interest financing can significantly reduce these costs, and in some cases, customers are cash flow positive from the day the system begins operation. Due to their high efficiency, GSHPs offer excellent long-term energy savings as well.
Residential
The costs for residential GSHP projects average $9,000 per heating ton, typically ranging from $7,000 to $13,000 per heating ton, depending on the site and project type.
Homeowners who install GSHPs may qualify for the following incentives:
| Incentive | Amount | Expires |
| Investment Tax Credit | 26% of system costs | Dec 2021 |
| Mass Save HEAT Loan | 0% for 7 years; up to $25,000 | Ongoing |
| Mass. Sales Tax Exemption | 6.25% | Ongoing |
| Alternative Energy Credits | Varies | Ongoing |
Business
Businesses installing GSHPs at their properties may qualify for the following incentives:
| Incentive | Amount | Expires |
| Investment Tax Credit | 10% of costs | Dec. 2021 |
| Mass. Sales Tax Exemption | 6.25% | Ongoing |
| Alternative Energy Credits | Varies | Ongoing |
Next Steps for Installing a Ground-Source Heat Pump
- Learn about Ground-Source Heat Pump Technology.
- Visit our Installer page, which lists ground-source heat pump installers and the communites they serve.
- Review data from the now-concluded MassCEC ground-source rebate program, including pricing, equipment, installer and location information that can be helpful in understanding what is being installed in your area. The data can be downloaded here.