Heat Pumps

Heat Pump Rebates

Shrewsbury Electric and Cable Operations (SELCO) offers rebates on heat pump systems. Please note that all heat pumps must be installed by a MA licensed contractor in order to be eligible for a rebate. Note to Contractors: Please reach out to help@NextZero.org to submit applications on behalf of your customers. Refer to the tables below to see if your heat pump system qualifies.

Heat PumpSEER2EER2HSPF2Minimum COPTier I RebatesTier II Rebates
Air Source Heat Pump (Including Mini-Splits)≥ 15.2N/A≥ 8.1≥1.5 @ 5°F$250/ton$2,000/ton
Ground Source Heat PumpN/A≥ 20N/A≥3.5$750/ton$3,000/ton

*Maximum Heat Pump rebate is $9,000 + Decarbonization rebate is $1,000 for a total maximum rebate of $10,000 per address

Customers who have natural gas heating are not eligible to receive a SELCO Tier I or Tier II Heat Pump rebate.

SELCO also offers Weatherization rebates on efficient home upgrades such as insulation and duct sealing.

Decarbonization Rebate

In order to further their decarbonization efforts, SELCO is offering a $1,000 rebate to customers that install heat pumps as their sole heating source. To qualify for this the 2026 decarbonization rebate, customers must have installed new heat pumps in 2026 AND removed/disconnected their fossil fuel heating system in the last 12 months. A post inspection must be performed by NextZero. The inspector will issue a verification form confirming the fossil fuel heating system has been removed or disconnected. This signed inspection form will be required to receive the $1,000 decarbonization rebate. To schedule this inspection, please call 888-333-7525.

What does and does not qualify as removal/disconnection of pre-existing heating system?

Does Qualify:

  • Furnace/Boiler Disconnection
  • Oil Tank Removal
  • Capping off fuel pipes/lines to oil tank or furnace/boiler
  • Disconnected the fossil fuel system from providing heat, but retained the gas/oil for domestic hot water only

Does Not Qualify:

  • Customers that have/had natural gas heat
  • Customers switching from electric resistance to heat pumps
  • Thermostat disconnection/removal
  • Replacing existing heat pumps
  • Closing the shut-off valve to the boiler or furnace

Whole Home Heat Pumps

The Energy Saver Home Loan Program helps eligible Massachusetts homeowners cut their energy use and reduce or eliminate their reliance on fossil fuels.

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Partial Home Heat Pumps

The Energy Saver Home Loan Program helps eligible Massachusetts homeowners cut their energy use and reduce or eliminate their reliance on fossil fuels.

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Heat Pump Basics

The Energy Saver Home Loan Program helps eligible Massachusetts homeowners cut their energy use and reduce or eliminate their reliance on fossil fuels.

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