Heat Pumps

NextZero 2025 Rebate Reminder

Reminder-2025 NextZero Rebate applications must be submitted by 1/31/26.

HEAT PUMP REBATES

Ipswich Electric Light Department (IELD) offers rebates on heat pump systems. Refer to the table below to see if your heating or cooling system qualifies. Click the “Submit Online Application” link or download the mail-in application to see the full range of options and get started. IELD also offers rebates on Wi-Fi thermostats through its  Appliance Rebate program. Please note that all heat pumps must be installed by a MA licensed contractor in order to be eligible for a rebate.

Heat PumpSEER2HSPF2COPPartialWhole HomeLow to Moderate Income Adder
Air Source Heat Pump (Including Mini-Splits)≥ 15.2≥ 8.1≥ 1.5@5°F$500/ton$750/ton$250/ton
Heat PumpEER2COPRebate
Ground Source Heat Pump≥ 20 3.5$2,000

SEER2=Seasonal Energy Efficiency Ratio

EER2= Energy Efficiency Ratio (measures instantaneous cooling efficiency)

HSPF2= Heating Seasonal Performance Factor

COP= Coefficient of Performance

Partial Home Installation – Heat pump is only able to heat/cool part of the home. Rebate is capped at $2,000.

Whole Home Installation – Heat pump has the ability to heat/cool every finished room in the home. A NextZero Post Installation Inspection is required to be performed to confirm heat pump is a whole home system and confirm removal of fossil fuel system. Please call 866-306-0909 to schedule inspection. Rebate capped at $3,000.

Low to Moderate Income (LMI) Adder – Obtain LMI approval letter from Ipswich Electric Light Dept. Total rebate capped at $5,000. To see if you qualify, see eligibilty tables at the bottom of the page.

Some Restrictions Apply:

  • Rebates only available to current customers in good standing with their electric utility.
  • Ductless mini-split cooling-only units are not eligible.
  • Must be purchased and installed between 1/1/2026 – 12/31/2026.
  • Applications must be postmarked by 1/31/2027 and sent to the address on page 1 of this application.
  • Heat pumps must be installed by a licensed contractor. No self-installs.
  • If applying for the LMI adder, contact IELD to obtain an approval letter prior to applying for the rebate. Customers can call 978-356-6635 to apply for a LMI approval letter.
  • Rebate will be issued as a check to the electric account owner.

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

WEATHERIZATION REBATES

Ipswich Electric Light Department offers rebates on efficient home upgrades such as insulation, air sealing and duct sealing. Please note that in order to be eligible to apply for these rebates, you must have a home energy assessment. Call 866-306-0909 to schedule. To apply, click the “Submit Online Application” link or download the mail-in application to see the full range of options and get started. 

Rebate for Insulation, Air Sealing and/or Blower Door Test Eligibility Requirement
75% of combined cost, up to $2,000 N/A
75% of combined cost, up to $5,000 Work must have occurred in conjunction with the installation of a heat pump (within 6 months)
100% of combined cost, up to $5,000 for Low to Moderate Income (LMI)Customer must obtain a LMI approval letter from Ipswich Electric Light Dept.

Some Restrictions Apply:

  • Rebates only available to current customers in good standing with their electric utility.
  • Post-installation inspections are required to receive rebates. Call 866-306-0909 to schedule an inspection.
  • Must be purchased 1/1/2026 and 12/31/2026. Applications must be postmarked by 1/31/2027 and sent to the address below.
  • Self-installation of efficiency measures are not eligible for rebate.

LOW TO MODERATE INCOME (LMI) ELIGIBILITY

Customers who earn up to 60% of the state median income qualify as low income.  

Household SizeAnnual Income (Gross)
1$49,196
2$64,333
3$79,470
4$94,608
5$109,745
6$124,882
7$127,720
8$130,559

Customers who earn more than 60% of the state median income, up to 80% of the area median income qualify as moderate income.

Household SizeAnnual Income (Gross)
1$49,197 – $91,400
2$64,334 – $104,450
3$79,471 – $117,500
4$94,609 – $130,550
5$109,746 – $141,000
6$124,883 – $151,450
7$127,721 – $161,900
8$130,560 – $172,350

If applying for the LMI adder, contact IELD to obtain an approval letter prior to applying for the rebate. Customers can call 978-356-6635 to apply for a LMI approval letter.