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 tables 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

*Maximum Heat Pump Rebate is $9,000 + Decarbonization Rebate is $1,000 for a Total Maximum Rebate of $10,000 per address

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

  • There is natural gas in my home, so I am also eligible to receive a Mass Save rebate.
  • 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 the home energy assessment were not completed.

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
  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 Rebates are for SELCO customers who:

  • Are NOT eligible for Mass Save rebates ANDinstalled a whole home unit that has the ability to heat/cool every finished room in the home.
    • 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.
  • Customers applying for Tier II rebates are additionally required to:
    1. Have had a home energy assessment performed within the past 3 years.
    2. 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
    3. Have a Whole Home Verification Visit performed by NextZero & provide a copy of verification form signed by the inspector.
  • Customers applying for Tier II rebates must provide:
    1. Provide a SELCO Good Standing Letter 
    2. Copy of a recent electric bill
    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. Tier II Only – provide a copy of the Whole Home Heat Pump Verification Form signed by the inspector

 Some Restrictions Apply:

  • 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.
  • A home energy assessment, as well as any recommended weatherization work are required to be completed for all Tier II rebates.
  • Heat pumps must be installed between 1/1/2024 and 12/31/2024.
  • Applications must be postmarked by 1/31/2025.
  • 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.

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

Decarbonization Rebate

In order to further their decarbonization efforts, SELCO is offer a $1,000 rebate to customers that install heat pumps as their sole heating source. To qualify for this rebate, customers must remove or disconnect their fossil fuel heating system. 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.

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.