Heating & Cooling

Heat Pump Rebates

Shrewsbury Electric and Cable Operations (SELCO) offers rebates on heat pump systems. Please note that all heat pumps be must installed by a MA licensed contractor in order to be eligible for a rebate. Refer to the table below to see if your heat pump system qualifies.

Heat PumpSEEREERHSPFCOPTier I RebatesTier II Rebates
Air Source Heat Pump (Including Mini-Splits)≥16N/A≥9.0N/A$1,000/ton$2,000/ton
Ground Source Heat PumpN/A≥20N/A≥3.5$1,500/ton$3,000/ton


Heat PumpSEER2EER2HSPF2COPTier I RebatesTier II Rebates
Air Source Heat Pump (Including Mini-Splits)≥15.3N/A≥7.65N/A$1,000/ton$2,000/ton
Ground Source Heat PumpN/A≥19.2N/A≥3.5$1,500/ton$3,000/ton

Do I Qualify for Tier I or Tier II?

  • Tier I rebates are for SELCO customers that are also eligible to apply for Mass Save rebates OR customers that are installing a partial home unit. Tier I is also for customers that chose not to have a home energy assessment or did not complete the required weatherization measures required by the Tier II rebates.
  • Tier II rebates are for SELCO customers who are NOT eligible for Mass Save rebates AND installed a whole home unit that has the ability to heat/cool every room in the home. Customers applying for Tier II rebates must have a home energy assessment performed and install all recommended weatherization to be eligible for the rebate. Tier II rebates also require a post installation inspection to be completed. See below for further information:
    • Heat pumps must be new and sized to be capable of being the sole source of heating in the home. Contractors must install equipment sized to meet 90-120% of the total heating load at the outdoor design temperature, per ACCA Manual J Design Conditions, throughout 100% of the conditioned space. Homes may maintain backup heating system that will only be used during heat pump maintenance down-time or if needed during an extreme weather event. Customer must have a post installation inspection.
    • Homes must be occupied full time during the winter heating season.
    • A home energy assessment must have been performed in the last three years and the home must be sufficiently weatherized prior to heat pump installation. 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.

    Required for Rebate Processing

    1. Customers must first contact SELCO to request a Heat Pump Eligibility Letter to ensure the customer’s account is in good standing and provide a copy of the letter
    2. Completed Rebate Application Form or completing the online application
    3. Copy of a recent electric bill
    4. AHRI Certificate (obtain from contractor)
    5. Copy of “ACCA Approved Version 8 Manual J” Load (Sizing) Calculation (Note: Manual J not required for mini-split systems)
    6. Tier II Only – provide a copy of the Whole Home Heat Pump Verification Form signed by the inspector

    Some Restrictions Apply:

    • Ductless mini-split cooling-only units are not eligible.
    • A Heat Pump Consultation is encouraged, but not required.
    • A home energy assessment, as well as any recommended weatherization work are required to be completed for all Tier II rebates.
    • Must be purchased between 1/1/2023 and 12/31/2023.
    • Applications must be postmarked by 1/31/2024.
    • 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. Maximum annual rebate is $10,000 per address.

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

Home Efficiency Rebates

SELCO offers Home Efficiency rebates on efficient home upgrades such as insulation and duct sealing. Refer to the table below to see if your home efficiency measures qualify. Click the “Submit Online Application” link or download the mail-in application to see the full range of options and get started.

*Home EfficiencyRebate
Blower Door Test & Air Sealing50% up to $500
Insulation50% up to $500
Duct Sealing50% up to $500

* Post-installation inspections are required to receive rebates. Call 888-333-7525 to schedule an inspection.