How much is the Mass Save geothermal rebate in Massachusetts?

Up to $13,500 for a whole-home ground-source (geothermal) heat pump that serves as the sole source of heating and cooling — higher than the $8,500 air-source cap because geothermal costs more to install. Partial-home GSHP installs earn $2,000/ton, also capped at $13,500. Equipment must be on the Mass Save HPQPL and installed by an enrolled installer.

Is the geothermal rebate bigger than the air-source heat pump rebate?

Yes. Geothermal's whole-home Mass Save cap is up to $13,500, versus $8,500 for air-source. The higher cap reflects geothermal's much higher installed cost (the ground loop and drilling) and its superior year-round efficiency. Even so, because geothermal installs run $30,000–$60,000, the net cost after rebate is still well above a comparable air-source system — see the geothermal vs air-source comparison for the full trade-off.

Can income-qualified households get more?

Yes. Mass Save's income-eligible moderate-income track raises the geothermal cap to up to $25,000 for qualifying households (subject to a $25,000 customer-account limit across all enhanced offerings). That's a substantial increase over the standard $13,500 cap and can materially change geothermal's payback for eligible homeowners.

What happened to the federal 30% geothermal tax credit?

The federal §25D Residential Clean Energy Credit — 30% of installed cost with no dollar cap — expired for expenditures made after December 31, 2025 under the One Big Beautiful Bill Act (P.L. 119-21). For most of the last decade this credit was the single biggest reason geothermal penciled out in MA; its loss shifts the entire payback calculation onto the state incentives. Pre-2026 installs may carry forward unused §25D credits into later tax years — consult a tax professional.

Does geothermal qualify for the 0% HEAT Loan?

Yes. The Mass Save HEAT Loan (0% APR up to $25,000, term-tiered by income) covers qualifying geothermal installs the same as air-source heat pumps. Given geothermal's higher cost, the HEAT Loan usually finances only part of the balance, but it meaningfully reduces the carrying cost of the post-rebate remainder.

Geothermal Incentives & Rebates in Massachusetts

By MassHVAC Editorial Team Reviewed by MassHVAC Editorial Team Last updated 2026-09-19

The 2026 geothermal incentive stack in Massachusetts

Geothermal — ground-source heat pumps (GSHP) — gets its own, larger Mass Save rebate track, separate from the air-source tiers, because a geothermal system costs far more to install (the ground loop and drilling). Here's what applies in 2026:

Mass Save Whole-Home Ground-Source (Geothermal) Heat Pump Rebate

Up to $13,500

Capped at $13,500 per home

Whole-home ground-source heat pump systems that serve as the sole source of heating and cooling for the conditioned space. Equipment must be on the Mass Save HPQPL and installation must be by an HPIN-enrolled installer.

Mass Save Partial-Home Ground-Source (Geothermal) Heat Pump Rebate

$2,000/ton

Capped at $13,500 per home

Partial-home GSHP installs (supplements an existing primary heating system rather than replacing it). Tonnage is calculated from AHRI cooling capacity divided by 12,000 BTUs.

Income-qualified enhanced geothermal

Up to $25,000

Households between approximately 60% and 135% of SMI on the moderate-income track. Customer account limit: maximum $25,000 across all enhanced incentive offerings. Replaces the standard heat pump rebate caps with up to $25,000 for ground-source (geothermal) systems.

Financing

Mass Save HEAT Loan

0% APR up to $25,000

Subject to bank underwriting through participating Massachusetts lenders. Covers equipment + installation costs for qualifying high-efficiency upgrades (heat pumps, ductless mini-splits, insulation, water heaters, and batteries enrolled in ConnectedSolutions). A Home Energy Assessment is mandatory before financing a whole-home heat pump. Households below approximately 81% SMI typically route to Mass Save's no-cost / enhanced-rebate programs rather than the HEAT Loan.

Primary source

“Mass Save whole-home ground-source (geothermal) heat pump rebate: up to $13,500 per home; partial-home $2,000/ton (same cap). Income-qualified enhanced GSHP up to $25,000.”

— Mass Save ground-source heat pump program Accessed 2026-09-19

The expired federal §25D geothermal credit

For most of the last decade, the federal §25D Residential Clean Energy Credit — 30% of installed cost for ground-source (geothermal) heat pumps, with no dollar cap — was the single biggest reason geothermal penciled out in Massachusetts. It expired for expenditures made after December 31, 2025 under the One Big Beautiful Bill Act (P.L. 119-21). A $40,000 geothermal install that once netted a $12,000 federal credit no longer does, which shifts the entire payback calculation onto the state incentives above. Pre-2026 installs may carry forward unused §25D credits into later tax years — a tax professional can confirm. Track every dated change on the incentives changelog.

How geothermal now compares to air-source

Even with the larger $13,500 Mass Save cap, geothermal's net cost after rebate stays well above a comparable air-source system, because a geothermal install runs $30,000–$60,000 versus $18,000–$28,000 for air-source. Without the §25D credit, air-source wins the cost-after-rebate math for most typical homes. Geothermal remains the right call for large homes (over ~4,000 sq ft), net-zero-focused owners, sites where an outdoor air-source unit can't be placed, and new construction where loop installation is far easier than retrofitting an existing lot. The full side-by-side is in geothermal vs air-source.

How to claim the geothermal rebate

Start with a Mass Save Home Energy Assessment.
Choose an installer who does geothermal and is enrolled in the Mass Save program.
Confirm the GSHP equipment is HPQPL-listed and the design is whole-home (sole heating/cooling source) to hit the up-to-$13,500 tier.
Screen for income-qualified enhanced eligibility (up to $25,000) via the income-qualified pathway.
Finance the balance at 0% through the HEAT Loan.

For the full geothermal picture — how the loop works, install process, and whether it fits your lot — see the geothermal heating & cooling pillar and geothermal installation guide.

Massachusetts geothermal incentives FAQ

How much is the Mass Save geothermal rebate in Massachusetts?: Up to $13,500 for a whole-home ground-source (geothermal) heat pump that serves as the sole source of heating and cooling — higher than the $8,500 air-source cap because geothermal costs more to install. Partial-home GSHP installs earn $2,000/ton, also capped at $13,500. Equipment must be on the Mass Save HPQPL and installed by an enrolled installer.
Is the geothermal rebate bigger than the air-source heat pump rebate?: Yes. Geothermal's whole-home Mass Save cap is up to $13,500, versus $8,500 for air-source. The higher cap reflects geothermal's much higher installed cost (the ground loop and drilling) and its superior year-round efficiency. Even so, because geothermal installs run $30,000–$60,000, the net cost after rebate is still well above a comparable air-source system — see the geothermal vs air-source comparison for the full trade-off.
Can income-qualified households get more?: Yes. Mass Save's income-eligible moderate-income track raises the geothermal cap to up to $25,000 for qualifying households (subject to a $25,000 customer-account limit across all enhanced offerings). That's a substantial increase over the standard $13,500 cap and can materially change geothermal's payback for eligible homeowners.
What happened to the federal 30% geothermal tax credit?: The federal §25D Residential Clean Energy Credit — 30% of installed cost with no dollar cap — expired for expenditures made after December 31, 2025 under the One Big Beautiful Bill Act (P.L. 119-21). For most of the last decade this credit was the single biggest reason geothermal penciled out in MA; its loss shifts the entire payback calculation onto the state incentives. Pre-2026 installs may carry forward unused §25D credits into later tax years — consult a tax professional.
Does geothermal qualify for the 0% HEAT Loan?: Yes. The Mass Save HEAT Loan (0% APR up to $25,000, term-tiered by income) covers qualifying geothermal installs the same as air-source heat pumps. Given geothermal's higher cost, the HEAT Loan usually finances only part of the balance, but it meaningfully reduces the carrying cost of the post-rebate remainder.
Is geothermal still worth it in Massachusetts without the federal credit?: For most homeowners, air-source heat pumps now win the cost-after-rebate comparison, and geothermal is a niche choice for large homes (over ~4,000 sq ft), net-zero-focused owners, sites where an outdoor air-source unit can't be placed, and new construction where loop installation is far easier. The Mass Save GSHP rebate and enhanced caps are meaningful, but without §25D they generally don't close the gap with air-source for a typical-sized home.

Related guides

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