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Heat Pump Qualifications

TIER I – PARTIAL HOME HEAT PUMP INSTALLATION

  • (ONLY for customers who do not have natural gas heat)

Customers qualify for Tier I if ANY of the following apply:

  • The heat pump installed is only a partial unit not meant to heat/cool every room in the house.
  • A home energy assessment has not been performed in over three years.
  • The required weatherization measures indicated in a home energy assessment were not completed.
  • The customer continues to use their non-heat pump equipment as their primary heating source (instead of utilizing their heat pumps) with the switch over point being 32°F or higher.

Customers applying for Tier I rebates must provide:

  1. Good Standing Letter from SELCO (obtain letter online HERE)
  2. Copy of a recent electric bill (all pages)
  3. AHRI Certificate (obtain from contractor)
  4. Copy of “ACCA Approved Version 8 Manual J” Load (Sizing) Calculation (Note: Manual J not required for mini-split systems)
  5. Copy of contractor’s invoice including install date & address of installed equipment, brand and condenser & air handler model #s, size in BTUs and total installation cost

TIER II – WHOLE HOME HEAT PUMP INSTALLATION

        (ONLY for customers who do not have natural gas heat)

Tier II Rebates are for SELCO customers who:

  • Installed a whole home unit that is the primary system used to heat/cool every finished room in the home.
  • Heat pumps must be new and sized to be the sole source of heating in the home. To qualify, a system must meet the following criteria:
    • Maximum output at 5°F must deliver 100-140% of design load
    • Minimum output at 47°F must deliver 50% of design load or less
    • COP at 17°F must be 2.5 or higher –OR – COP at 5°F must be 2.0 or higher
  • Heat pumps must be used as the primary heating source only switching over to an emergency heat source at 0°F or colder.
  • Customers intending to apply for a Tier II rebate are encouraged, but not required, to apply for a System Design Review (call 888-333-7525) prior to beginning construction to ensure the proposed design will comply with requirements.

Customers applying for Tier II rebates are additionally required to:

    1. Have had a home energy assessment performed within the past 3 years.
    2. Have a Whole Home Verification visit performed by NextZero & provide a copy of verification form showing the install was approved as a whole home system and signed by the inspector.
    3. Install all required weatherization measures. Sufficient weatherization can be demonstrated by satisfying at least one of the following requirements:
      • Home was built during or after 2000
      • Home energy assessment report indicates less than $1,000 worth of weatherization recommended.
      • Weatherization recommendations made during or after 2013 have been completed. Supporting documentation only required upon request

Customers applying for Tier II rebates must provide:

  1. Provide a SELCO Good Standing Letter 
  2. Copy of a recent electric bill (all pages)
  3. AHRI Certificate (obtain from contractor)
  4. Copy of “ACCA Approved Version 8 Manual J” Load (Sizing) Calculation (Note: Manual J Report IS REQUIRED for mini-split systems AND ducted systems)
  5. Copy of contractor’s invoice including install date & address of installed equipment, brand and condenser model #, size in BTUs and total installation cost
  6. Provide a copy of the Whole Home Heat Pump Verification Form approved & signed by the inspector

Restrictions Apply for Tier I and Tier II Rebates:

  • Maximum Heat Pump rebate is $9,000 + Decarbonization rebate is $1,000 for a total maximum rebate of $10,000 per address.
  • Ductless mini-split cooling-only units are not eligible.
  • A Heat Pump Consultation is encouraged, but not required.
  • Heat pumps must be installed between 1/1/2026 and 12/31/2026.
  • Applications must be postmarked by 1/31/2027.
  • Total incentives cannot exceed 100% of total project costs. This includes NextZero rebate, the SELCO Loan and any upcoming federal rebates. Please include documentation detailing any and all incentives this project will be receiving.

Tier II Restrictions only:

  • A home energy assessment, as well as any recommended weatherization work are required to be completed for all Tier II rebates.

  • Tier II rebates will not be approved for customers who use their emergency heating system at  32°F or higher, instead of the required 0°F.

Massachusetts provides a sales tax exemption on the purchase of heat pump systems. For more information, consult your local tax expert.