Whole Home Heat Pumps

Whole Home Heat Pump Journey (Tier 2 Rebates)

NextZero provides heat pump educational and planning resources for customers who are interested in purchasing whole home systems.

Audit (Required): Customers must schedule a standard or expanded home energy audit and receive a heating/cooling load report.

Consultation (Optional): Customers can then schedule a phone consulatation with a heat pump expert about the home’s specific heat pump project. The expert will also provide a list of preferred heat pump contractors.

Design Review (Optional): NextZero offers a design review to help the customer learn about the benefits of installation weatherization measures alongside heat pumps to maximize efficiency and receive weatherization quotes. NextZero will provide an initial and lifetime cost comparison with different heat pump system options.

Design Approval (Optional): NextZero experts can review the contractor’s design and confirm that the design will work in the customer’s specific home.

Inspection (Required): NextZero will perform a whole home post-installation verification inspection to confirm the equipment was installed correctly.

After the inspection, customers can visit www.rebates.nextzero.org and submit an online rebate application.

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. To qualify, a system must meet the following criteria:
  • Maximum output at 5°F must deliver 100-140% of design load
  • Minimum output at 47°F must deliver 50% of design load or less
  • COP at 17°F must be 2.5 or higher –OR – COP at 5°F must be 2.0 or higher
• Heat pumps must be used as the primary heating source only switching over to an emergency heat source at 0°F or colder.
• Customers intending to apply for a Tier II rebate are encouraged, but not required, to apply for a System Design Review (call 888-333-7525) prior to beginning construction to ensure the proposed design will comply with requirements.

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 model #, 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 for 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 1/1/2026 and 12/31/2026.
• Applications must be postmarked by 1/31/2027.
• 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.
• 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.