High-Efficiency Heat Pumps

A rebate of $1,000 is available for eligible households that install an air-source or ductless mini-split heat pump system.

A rebate of $2,000 is available for eligible households that install a ground-source heat pump system.

Air Source Heat Pump Rebate

GrounSource Heat Pump Rebate
*Please note, this program is specifically for heat pump HVAC systems. Rebates for heat pump based appliances (e.g. clothes dryers and hot water heaters) are listed under the ENERGY STAR Appliance Program.

Customer Eligibility:
Must be a current residential customer of Ipswich Electric Light Department in good standing. Customers are strongly encouraged to have a ReSource Ipswich Home Efficiency Audit or Air source Heat Pump Assessment prior to their installation.

 Product Requirements:

Qualified systems are air-source heat pumps or ductless mini-split heat pumps meeting NEEP standards. Central A/C systems do not qualify for the rebate. Product must be purchased between 01/01/2024 and 12/31/2024.

Required Documentation:
  • Copy of contractor's invoice showing required information and proof of purchase.
  • A copy of the AHRI Certificate. Visit www.ahridirectory.org or contact your Heating and Air Conditioning Contractor to obtain a copy.
  • Equipment specification documents or "cut sheets" for heat pump system components.
Why consider a heat pump?
In New England, space heating accounts for nearly 60% of the average household's energy use, and 8 out of every 10 Massachusetts homes rely on either natural gas or fuel oil as their primary heating fuel (EIA, 2009 REC Survey). In order for Massachusetts to meet its ambitious emissions reduction targets, the residential sector needs to transition to heating systems that rely on electricity rather than fossil fuels.

Until recently, the only electric heating option for homeowners in colder climates was electric resistance furnaces or baseboards which are expensive and inefficient. Heat pumps, which use electricity to capture heat in a cool area and pump it to a warmer area, have traditionally struggled in cold climates because, as you can probably imagine, capturing heat from cold outside air in the middle of a New England winter isn't exactly easy.

However, with recent advances in heat pump technology that allow them to operate at temperature well below freezing, more New England households are turning to heat pump systems to save energy, save money, and improve comfort in their home. According to an article from the U.S. Department of Energy, a cold climate air-source heat pump can reduce your household energy consumption by up to 40%, especially if you currently rely on electric resistance or fuel oil to meet your heating needs.

Northeast Energy Efficiency Partnerships (NEEP) is an organization developing efficiency standards for Cold Climate Air Source Heat Pumps (ccASHP). Their standard is similar to the efficiency ratings more commonly used (EER, SEER, and HSPF) but specifically focused heat pump efficiency at temperatures as low as 5º F. While not required, customers are strongly encouraged to reference NEEP's product listing to ensure they choose a system optimized for our New England winters.