Ground-Source Heat Pumps (Government/Non-Profit) - FAQ


How much funding will my business receive?

Small-scale systems are eligible for awards of up to $25,000, and commercial-scale systems are eligible for up to $250,000. The awards are based on a combination of system capacity and efficiency, with “adders” for public and non-profit entities, and for multifamily affordable housing developments.  You can use this grant calculator to estimate the amount of funding you will receive. More details can be found in Section 3 of the Small-Scale Program Manual and Commercial-Scale Program Manual.

Are more efficient heat pumps more expensive?

Although higher-efficiency heat pumps can be more expensive, MassCEC’s awards are structured to compensate business owners for this extra cost through efficiency adders that can account for up to 40 percent of award amounts.

Why isn’t everyone in Massachusetts eligible for this rebate program?

Projects receiving rebates through MassCEC must be located in a utility territory that contributes funding to the Renewable Energy Trust (RET), which includes communities served by investor-owned electric utility companies or a participating municipal lighting plant.

What is an MLP and where are they?

MLP stands for “municipal light plant” and refers to communities who are serviced by a publicly-owned local utility instead of an investor-owned electric company, such as National Grid or Eversource. Some of these MLP communities contribute to the RET, which is the funding source for rebates. We are unable to provide rebates to MLP communities that do not contribute to the RET.

Can retrofits of existing GSHP systems qualify?

Yes, awards are based on a percentage of costs, up to a maximum of $8,594 for government and non-profit entities, $11,719 for publicly owned affordable housing or $150,000 for large-scale systems. Eligible project costs include: replacement heat pump equipment, new loop piping, well modifications or additions and any associated labor. Internal distribution system modifications and miscellaneous costs are not eligible.