Financial Incentives for Home Electrification

Nearly 20% of our climate damaging emissions statewide are directly attributable to residential buildings1 – and in Brookline, the percentage of residential emissions is likely significantly higher. Meeting the Commonwealth’s 2050 net zero emissions goals will require individual renters, condo-owners, homeowners and landlords to take steps to electrify their homes while the electric grid transitions to 100% clean renewable energy sources.

For many decades, Mass Save – the Commonwealth’s utility-sponsored energy efficiency program – has offered zero-interest loans and cash rebates2 for home energy improvements and energy efficient appliance purchases; in recent years, Mass Save rebates have increased significantly in support of home electrification. In addition, both Massachusetts and the federal government now offer an expanded array of incentives (tax credits3 and/or rebates) to help individuals electrify their homes. More incentives are expected in 2024, when Massachusetts is expected to receive more than $73 million in federal funding from the Inflation Reduction Act (IRA).4 This is an important time for Brookline residents to start on the path to home electrification! Stay tuned to learn more about ways to save money starting in 2024 to help reach State and Town climate goals.

The chart below summarizes the substantial financial incentives that’s out there now and that’s coming in 2024, to help you start thinking about financing home electrification steps, including links to online calculators and other resources to help you tailor the information to your home and income level. Don’t leave easy money on the table!

Want to Learn More?

The White House Clean Energy page provides an overview of the available incentives through the Inflation Reduction Act, along with examples of how consumers can save on utility costs and get support to make their homes, appliances and vehicles more energy efficient. You can sign up to receive updates as program details are worked out for additional incentives expected to be available in 2024.

The U.S. Environmental Protection Agency (EPA), through its Energy Star program, provides a handy tool to research federal incentives. Try it out at Special Offers and Rebates from ENERGY STAR Partners | EPA ENERGY STAR. Over the next year, watch for updates to this tool and an updated Mass Save website, as federal IRA rebate money trickles down to the State and as Mass Save works to develop one-stop shopping tools covering the complete menu of federal and state incentives.5

The Massachusetts Clean Energy Center (MassCEC), a program of the Massachusetts Department of Energy Resources (DOER), has created a table with convenient links that covers both Federal and State incentives: Benefits + Savings / Massachusetts Clean Energy Center.

IMPORTANT NOTE ON MASS SAVE REBATES: Completing a Mass Save Home Energy Assessment (HEA) is often required to be eligible for Mass Save’s 0% interest loans and their rebates for heating and cooling equipment, energy efficient appliances, and home weatherization. Be sure to have the proper documentation through a recent assessment or an update of a previous assessment and fully understand the program conditions and equipment requirements for rebate eligibility before buying appliances or hiring contractors.

IMPORTANT NOTE ON FEDERAL TAX CREDITS: Be sure to understand the details of the Federal tax credits through the IRS. For example, the annual $2,000 max tax credit for heat pumps includes both heat pump water heaters and heat pumps for heating/cooling. To maximize available credits you may want to consider phasing your energy improvements over several tax years.

Home Electrification StepSourceIncentive6AvailableAdditional Information
How-To Guide #1
Incentives for LED Lighting
LED Lights Bulbs, FixturesMass SaveFree bulbs with Home Energy Assessment (HEA)CurrentNo-cost Mass Save Home Energy Assessment (HEA)
LED Lights Bulbs, FixturesMass SaveOnline discountsCurrentBuy Mass Save LEDs Online
How-To Guide #2
Incentives for Weatherization: Insulation and Air Sealing
Home Energy AssessmentMass SaveFreeCurrentNo-cost Mass Save Home Energy Assessment (HEA)
Insulation and Air SealingMass Save75% to 100% offCurrentMass Save | Home Weatherization Discounts
Insulation and Air SealingMass Save$25,000 (max.) 0% interest loanCurrentMass Save Heat Loan | Energy-Saving Loan Program
Insulation and Air SealingFederal30% tax credit
($1,200 max.)
CurrentMass Save | Inflation Reduction Act FAQs
Insulation and Air SealingFederal IRA $$*$1,600 rebate (max.)2024Home Energy Rebates FAQs | Department of Energy
Exterior DoorsFederal30% tax credit
($250 per door, $500 total, max.)
CurrentMass Save | Inflation Reduction Act FAQs
Exterior WindowsMass Save$75 per windowCurrentMass Save | Residential Window Rebates
Exterior Windows and SkylightsFederal30% tax credit
($600 max.)
CurrentMass Save | Inflation Reduction Act FAQs
How-To Guide #3
Incentives for Induction Cooking
Induction StoveMass Save$500 rebateCurrentMass Save | Induction Stove
Electric Cooking AppliancesFederal IRA $$*$840 rebate (max.)2024Home Energy Rebates FAQs | Department of Energy
How-To Guide #4
Incentives for Heat Pump Water Heater
Heat Pump Water HeaterMass Save$750 – $1,500 instant rebate (point-of-sale)CurrentMass Save | Heat Pump Water Heater Rebates
Heat Pump Water HeaterFederal30% tax credit
($2,000 max.)
CurrentMass Save | Inflation Reduction Act FAQs
Heat Pump Water HeaterFederal IRA $$*$1,750 rebate (max.)2024Home Energy Rebates FAQs | Department of Energy
How-To Guide #5
Incentives for Heat Pump Dryers
Electric DryerMass Save$50 rebateCurrentENERGY STAR Certified Clothes Dryers (masssave.com)
Clothes DryerFederal IRA $$*$840 rebate (max.)2024Home Energy Rebates FAQs | Department of Energy
How-To Guide #6
Incentives for Heating and Cooling with Air Source Heat Pumps
Air Source Heat Pump
or
Air to Water Heat Pump
Mass SaveUp to $16,000 whole home rebate OR $1,250 per ton partial home rebateCurrentMass Save | Air Source Heat Pump Rebates
Ground Source Heat PumpMass SaveUp to $25,000 whole home rebate OR $2,000 per ton partial home rebateCurrentMass Save | Ground Source Heat Pump Rebates
Heat Pumps (Air Source or Ground Source)Mass Save$50,000 (max.) 0% interest loanCurrentMass Save Heat Loan | Energy-Saving Loan Program
Heat Pumps for Heating and CoolingFederal30% tax credit
($2,000 max.; no limit for Ground Source)
CurrentMass Save | Inflation Reduction Act FAQs
Heat Pumps for Heating and CoolingFederal IRA $$*$8,000 rebate (max.)2024Home Energy Rebates FAQs | Department of Energy
How-To Guide #7
Incentives for Electrical Service
Electrical Work for Energy UpgradesFederal30% tax credit
($600 max.)
CurrentMass Save | Inflation Reduction Act FAQs
Electrical Panels (Breaker Boxes)Federal IRA $$*$4,000 rebate (max.)2024Home Energy Rebates FAQs | Department of Energy
Electrical WiringFederal IRA $$*$2,500 rebate (max.)2024Home Energy Rebates FAQs | Department of Energy
How-To Guide #8
Incentives for Green Electricity
Solar PanelsMass.15% tax credit
($1,000 max.)
CurrentSolar Electricity – Mass Clean Energy Sector (masscec.com)
Solar PanelsMass. DOER / UtilitiesMonthly utility incentive paymentsCurrentSolar Massachusetts Renewable Target (SMART) Program Eversource – SMART Incentives Program
Solar PanelsUtilitiesNet Metering (electric bill credits for over-production)CurrentNet Metering Guide | Mass.gov Eversource | Massachusetts Net Metering
Solar PanelsFederal30% tax creditCurrentMass Save | Inflation Reduction Act FAQs
*Funding earmarked in the Federal Inflation Reduction Act (IRA) will be distributed to Massachusetts; program details TBD.

1 MA Clean Energy and Climate Plan for 2025 and 2030, page 23.
2 A rebate is cash back given to a customer after a purchase.
3 A tax credit is an amount that taxpayers can deduct, dollar for dollar, from the federal or state income taxes they owe.
4 Mass Save | Inflation Reduction Act FAQs.
5 Mass Save | Inflation Reduction Act FAQs.
6 Additional conditions may apply.