Heating & Cooling

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. Refer to the tables below to see if your heat pump system qualifies.

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

Customers who are eligible for Mass Save rebates (have natural gas heating) are not eligible to receive a SELCO Tier I or Tier II Heat Pump rebate.

TIER I – PARTIAL HOME HEAT PUMP INSTALLATION

        (ONLY for customers who are NOT Mass Save eligible)

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 are NOT Mass Save eligible)

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. 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.
• Heat pumps must be used as the primary heating source only switching over to an emergency heat source at 0°F or colder.

Customers applying for Tier II rebates are additionally required to:

1. 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 & air handler model #s, 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 1/1/2025 and 12/31/2025.
• Applications must be postmarked by 1/31/2026.
• 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.

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 2025 decarbonization rebate, customers must have installed new heat pumps in 2025 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 switching from electric resistance to heat pumps
• Thermostat disconnection/removal
• Replacing existing heat pumps
• Closing the shut-off valve to the boiler or furnace

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.

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