Whole-Home Heat Pump Program

Do you currently heat with gas, oil or propane, and want to convert to a cleaner heating system that can also provide cooling for your home? Additional assistance is now available to help you convert to Air Source Heat Pumps ("ASHPs"), sometimes called "Mini-Splits", as your primary heating system through HG&E's Whole-Home Air Source Heat Pump Program!

Please note:
  • If you would like to learn more about heat pump technology, visit our heat pump education webpage which includes information on how they work, how to find an installer, the estimated costs to heat with heat pumps compared to other types of heating fuels, etc.
  • If you are planning to install a smaller heat pump system, rather than a whole-home system, click here for more information on our basic heat pump rebate ($250/ton up to $1,000). 

whole-home heat pump PROGRAM INCENTIVES: 

ASHP Rebate*
  • Tier 1 Rebate**: $600/Ton (If keeping existing heating system (Maximum rebate: $2,400 for single-family homes, $1,200 per unit for multi-family homes.)
  • Tier 2 Rebate: $750/ton (Must decommission existing heating system) (Maximum rebate: $3,000 for single-family homes, $1,500 per unit for multi-family homes).
Weatherization Rebate Adder 75% of cost (available for any insulation, air sealing and/or duct sealing work recommended in your energy audit)
(Maximum rebate: $3,000 for single-family homes, $1,500 per unit for multi-family homes)
Residential Energy Conservation Program*** Financial assistance at 0% interest (Up to $15,000 for single-family homes, up to $20,000 for properties with 2 units, and up to $25,000 for properties with 3-4 units. Maximum repayment term of 60 months.) Click here for more information on the program webpage.
Additional Incentives In addition to the incentives offered through HG&E's Whole-Home Heat Pump Program, there are additional incentives available for heat pumps through other companies and organizations such as Mitsubishi, OneHolyoke CDC, and the Massachusetts Clean Energy Center. The full list of incentives for heat pumps that we are currently aware of is located on our heat pump incentives webpage. Be sure to review the requirements for any additional incentives you are interested in.
*Rebate based on ASHP maximum heating capacity at 5 degrees F up to 120% of the building's heating design load. (Note: 1 Ton = 12,000 BTUs). (For example, if the ASHP max capacity at 5 degrees is 150,000 btu/hr, but the building's heating design load is only 120,000 btu/hr, rebate will be based on 144,000 btu/hr)
**Customers who receive the Tier 1 rebate can receive the remaining difference in amount between Tier 1 and Tier 2 rebate (extra $150/ton) if existing heating system is removed within 2 years after ASHP system is installed (proof of removal required).
***In order to receive assistance through the Residential Energy Conservation Program, customer must adhere to the terms and conditions of that program which include having an account in good standing with HG&E (6- 12 month history of satisfactory payments) and no Municipal tax liens on the property. (Homeowners with no prior HG&E billing history may submit a letter of credit for consideration from their previous utility provider.) Note: Applicants are required to pay a $100 dollar administrative fee to participate.

how to apply

Click on "Submit Application" (below) to submit your application.

Please Note: It is recommended that you review the eligibility criteria, terms and conditions and the step by step application process (below) before you submit your application and before you have installed your new heat pump system so you know how the program works and to make sure you will qualify. 

 

Eligibility Criteria, Terms and Conditions

(Click here for printable version of the following requirements)


1. Each ASHP Unit Must:

2. The Entire ASHP System Must:

  • ASHP system (including any electric resistance elements) must be sized to provide 100%-120% of heating load within the entire conditioned/living space at the installation address*.
    • *Exceptions may be made on a case-by-case basis for systems that are sized for >120% of the building heating load, pending additional justification/explanation from the installer. However, rebate is capped at 120% of the building heating load.
    • *Single-head systems: May be rounded up to the next available size due to product availability.
  • ASHP system must be sized via ASHP maximum capacity at 0 degrees F if available. If not available, must be sized via maximum capacity at 5 degrees F.
  • Be sized via an ACCA-approved room-by-room Manual J heat load calculation (Manual J design temperature of 0 degrees F). (If pre-existing duct system will be maintained, block load Manual J may be used).
  • Electric resistance heating (baseboard) limited to no more than three 500 watt heaters to be used in spaces with no other heat source. (Exceptions may be made on a case-by-case basis).

3. ASHP Installer Must:

  • Be licensed in Massachusetts with manufacturer’s certificate of training within past 5 years
  • Complete and submit a post-installation form to HG&E after the project is complete
  • Note: Installers are recommended to install ASHP system based on NEEP’s Cold-Climate Installation Guidelines, which include ensuring any outdoor units have adequate clearance above historical average maximum snow depth

4. Quote or Other Documentation from Installer Must Contain: 

  • AHRI # for each unit being installed
  • Size of any electric resistance or strip heat that will be installed

Customer and Building Requirements, terms and conditions: 

  • This program is available to customers of HG&E for residential properties with 4 units or less. (Assistance is not granted to tenants renting or leasing the property.)
  • Applicant must be an active HG&E electric account holder on the residential service rate and own the building where the heat pump system will be installed. (Please note: Southampton customers who only receive gas service through HG&E are not eligible and should seek funding through the MassSave program as heat pumps use electricity to operate.)
  • Installation address must currently use natural gas, oil or propane as primary heating fuel (unless new construction or gut-rehab) and have an active HG&E residential electric account.
  • The new air source heat pump system must be used as the primary heating system at the installation address. (ASHPs used only for cooling are not eligible).
  • For customers applying for the Residential Energy Conservation Program (financial assistance at 0% interest): Applicant's accounts must be in good standing with HG&E, (6- 12 month history of satisfactory payments) and there shall be no Municipal tax liens on the property. For homeowners with no prior HG&E billing history, Applicant may submit a letter of credit from their previous utility provider.
  • Customer must have received home energy audit within past 3 years and before the heat pump system is installed.
    • *Customers who heat with oil or propane must submit past year of fuel use data to CET before audit (if available).

Additional Terms and Conditions:

  • Heat Pump system must be installed on or after effective program start date.
  • To receive the higher Tier 2 ASHP rebate (provided if customer decommissions existing heating system), installer must indicate on post-installation form that existing heating system was decommissioned.
    • *Gas-Conversion Projects Only:
      •  Gas System Decommissioning:
          • If a gas heating system is being decommissioned (i.e. the gas heating connection pipe is cut and capped), the connection must be cut and capped by a Massachusetts licensed gas plumber, and the plumber must have valid gas permit for the project in accordance with 248 CMR 3.00 regulations. Natural gas will no longer be available for heating load at the installation address after decommissioning a gas heating system. Load transfer to other appliances subject to review and approval by HG&E.
          • Note: In order to receive the higher Tier 2 rebate, customer must have gas heating system decommissioned.
      • Locations may be subject to additional requirements depending on gas service material and gas meter location(s)). 
  • To receive the Weatherization Rebate Adder:
    • Weatherization contractor must be licensed
    • The weatherization services must have been recommended in your energy audit
    • Weatherization work must be completed within 6 months of installing a qualifying whole-home heat pump system or within the same calendar year. 
    • Note: Weatherization rebate adder is not available for new construction or gut-rehabs. 
  • To receive financial assistance at 0% interest through HG&E's Residential Energy Conservation Program:
    • In order to receive assistance through the Residential Energy Conservation Program, customer must adhere to the terms and conditions of that program which include having an account in good standing with HG&E (6- 12 month history of satisfactory payments) and no Municipal tax liens on the property. (Homeowners with no prior HG&E billing history may submit a letter of credit for consideration from their previous utility provider.) Note: Applicants are required to pay a $100 dollar administrative fee to participate.
  • Customer is not eligible for any additional HG&E weatherization rebates for one year after project completion and is not eligible for any additional HG&E rebates for the ASHP system that is installed through this program. The Applicant is responsible for obtaining pricing, selecting a contractor, coordinating contractor scheduling and making payments to the contractor.
  • At HG&E's option, the completed installation may be inspected by HG&E personnel or its representative to ensure compliance with the terms of this program.
  • HG&E reserves the right to change, suspend, or modify the terms of this program at any time. Gas service may be terminated for violation of any Program eligibility requirements.
  • If customer has outstanding balance on HG&E account,any rebate over $100 will be applied to outstanding balance, and any remaining amount will be applied as on-bill credit.
  • If it is found that the heat pump system installed through this program is not being used as the primary heating system, HG&E will apply a charge to the customer's account that is equal to the difference between HG&E's Whole-Home Heat Pump Program rebate and HG&E's Basic Heat Pump Rebate of $250/ton up to $1,000. 
  • Neither HG&E, CET, their agents, or employees shall be liable for any claims, loss, expenses, or injury whatsoever for work performed under the Agreement. HG&E and CET make no and have not made any warranties or representations, express or implied, and do not hereby claim any representation, warranty, or covenant as to the design, installation, fitness for any particular purpose, merchantability, condition, quality, performance, durability, or suitability of the equipment (or any installation of installer thereof), or the work in any respect. HG&E and CET do not endorse, guarantee, or warranty the equipment, work, or any particular contractor, vendor, manufacturer, or product. HG&E and CET do not make any representation of any kind regarding the results to be achieved by the equipment or work or its adequacy and safety. Customer acknowledges that the calculations of potential savings associated with the equipment or work are estimates only and are not guaranteed.

STEP BY STEP APPLICATION PROCESS

A good first step may be to learn more about heat pump and mini-split technology on our heat pump and mini-split education webpage. Here you can learn about how these systems work, how to shop for an installer, the different efficiency ratings (for example, the HSPF rating, which is the system's heating efficiency), and more. 

Please review the eligibility criteria, terms and conditions section located on this webpage to find out if you meet the customer and building requirements needed to participate in this program. If you are interested in receiving financial assistance at 0% interest through HG&E's Residential Energy Conservation Program to help with the project costs, please review the terms and conditions of that program as well (located on the Residential Energy Conservation Program webpage).

In addition to the incentives offered through HG&E's Whole-Home Heat Pump Program, there are additional incentives available for heat pumps through other companies and organizations such as Mitsubishi, OneHolyoke CDC, and the Massachusetts Clean Energy Center. The full list of incentives for heat pumps that we are currently aware of is located on our heat pump incentives webpage. Be sure to review the requirements for any additional incentives you are interested in.

To arrange for a home energy audit at no cost to you, contact our energy services partner, NextZero, directly at their toll-free number: 1-888-333-7525. 

During the audit,  a professional energy advisor will assess your home and provide you with recommendations on ways to reduce your energy bills, such as weatherizing (insulating/air sealing) certain areas of your home. They will also provide an estimate on how much you would save on your heating bills by installing heat pumps.  Here is a link to more information on the home energy audit service.

Note: To participate in this program, you will need to have received a home energy audit within the past 3 years and before the new heat pump system is installed. Customers who heat with oil or propane must provide the energy auditor with information on your fuel use data for the past year (ex. # gallons oil purchased or used, etc.).

Weatherizing your home before you install a heat pump system can not only result in annual heating cost savings, but can also potentially reduce the size and cost of the heat pump system that you will need. Therefore, it is recommended that you consider getting a quote from a licensed weatherization contractor for each of the weatherization recommendations listed on your home energy audit report and have this work completed before you install your heat pumps. If you reach out to a weatherization contractor, be sure to provide them with a copy of your energy audit report so they can see the details related to the weatherization recommendations.

Customers who install qualifying whole-home heat pump systems through this program are eligible for a weatherization rebate of 75% of the cost up to $3,000. (Note: Weatherization work must be completed within 6 months of installing a qualifying whole-home heat pump system or within the same calendar year. ).

Consider obtaining proposals from at least 3 different heat pump installers, since installation costs can vary widely depending on which installer you work with. We also recommend that you provide any heat pump installer with a copy of your home energy audit so they can review your home’s weatherization levels, which will help them appropriately size your system. When you reach out to potential heat pump installers to obtain a proposal for your whole-home heat pump system, provide them with this list of system and installer eligibility requirements so they know what requirements they and the heat pump system they propose will need to meet to qualify. If you are having weatherization work done before the heat pump system is installed, be sure to keep your heat pump installer updated and send them a copy of your weatherization proposal or invoice for review.

If you are interested in receiving any of the additional incentives available for heat pumps be sure that the system you are installing meets any program-specific requirements.

If You are Having Weatherization Work Performed:

  • Weatherizing your home can potentially reduce the size (and cost) of the heat pump system you will need, so if you will be having weatherization work completed before you install the heat pumps, be sure your heat pump installer is aware of what work is being done so they can update the size of the heat pump system listed in your proposal as needed.  

Please note: It is recommended that you have a contract with any contractor you decide to work with in order to protect you from any damages that may occur as a result of the project, and that the contract is in line with the Massachusetts Home Improvement Contractor Guaranty Fund. It is also recommended that you talk to your installer about their payment expectations as you will be responsible for all payments to your contractor(s). (You will not receive your payment(s) through the Whole-Home Heat Pump Program until at least 3 weeks after the heat pump system has been installed.

Review the various heat pump quotes you have received. Look at what size heat pump system is being installed, the price, how many indoor units there will be, and perhaps consider the hspf rating (The hspf rating is the average annual heating efficiency of the system. The higher the hspf, the more efficient the heat pump system will be able to produce heat). 

Through HG&E's Connected Homes Program, customers who own heat pump systems that are connected to a qualifying thermostat/heat pump control (eligible models are Google Nest, Honeywell Home, Flair and Sensibo) can receive a $5-$8/month incentive for allowing their heat pump temperature to be remotely adjusted a few times each month. Consider deciding whether you would like the thermostat/heat pump control you have installed to be one of the models that are eligible for this program. Click here to learn more on our Connected Homes Program webpage. 

After you have chosen which heat pump proposal you plan to move forward with, submit the program application (below) before you install the heat pump system to make sure that you meet the program requirements. (If you would like to receive financial assistance at 0% interest through our Residential Energy Conservation Program, you will be able to do so as part of the Whole-Home Heat Pump Program application below. )

Be prepared to submit the following with your application:
• Heat pump proposal which includes:
     o AHRI # for each heat pump system being installed
     o Size of any electric resistance or strip heat (if applicable)
     o Copy of your Manual J (from your installer)
• Weatherization proposal (if applicable)
• Copy of your home energy audit report

For Customers requesting assistance through HG&E's Residential Energy Conservation Program:
• You will need to submit a copy of your deed with this program application. (Holyoke residents can obtain a copy of your deed by visiting the search database on Hampdendeeds.com then clicking the "address" section under the "Recorded Land" section to search for your deed by your address)
• Please note there is a $100 administrative fee to receive the assistance through the Residential Energy Conservation Program, and you must comply with the eligibility requirements, terms and conditions of that program. We will notify you if have been approved for assistance through the Residential Energy Conservation Program approx. 2-3 days after your application is received.

Complete the weatherization recommendations from your audit report if you have decided to move forward with them. Then have your new ASHP system installed.

After the work has been completed, your contractor will need to submit a whole-home heat pump program post-installation form with the following required information:

  • Heat pump installation invoice
  • AHRI # of qualifying equipment
  • Copy of your Manual J (from your installer)

To receive the weatherization rebate adder, your weatherization contractor will need to complete a weatherization post-installation form after the weatherization work has been completed. 

 

HG&E will mail you a check for your ASHP rebate, weatherization rebate (if applicable) and Residential Energy Conservation Program assistance (if applicable) approximately three weeks after your ASHP system has been installed and we receive all required post-installation paperwork from your installer.

Note: It is up to you to pay your installer(s) for any work that is completed. Because it will take at least three weeks for you to receive the payment from us after the ASHP system is installed, it is recommended that you review the payment terms with your chosen installer, including the payment due date for the work they performed. 

Questions?

If you have any questions about this program, please reach out to efficiency@hged.com or by phone at 413-536-9300.

Questions?

Contact: efficiency@hged.com