Heat Pump Rebates for Your Business
CMLP and the Sponsors of Mass Save® are helping to make the purchase and installation of energy-efficient heat pumps affordable for Concord businesses. Your primary heating fuel determines which agency provides you with heat pump rebates.
CMLP offers rebates ranging from $2,500 to $4,500 per ton of cooling capacity depending on the type of heat pump equipment installed. Your business is eligible for up to $50,000 in heat pump rebates in a 3 year period.
The sections below provide important details on program requirements.
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Learn about different types of heat pumps
Find an installer
Learn about heat pump rebates for multi-unit residential properties
Talk to a heat pump coach
CMLP offers heat pump coaching services at no cost for small businesses, such as those operating out of storefronts, converted residential buildings or 2 - 4 unit multi-tenant office buildings that heat with electricity, oil or propane. Trained coaches at Abode Energy Management help you figure out if heat pumps are the right heating and cooling solution for your business, and help you navigate the process of getting a heat pump installed. The service is supported by CMLP funds. Contact Abode at 339-210-4323 or rebates@AbodeEM.com.
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Pre-Existing Primary Fuel Type Equipment Type Rebate Amount
(up to rebate cap below)
Special Requirements Equipment Eligibility Criteria
Oil, Propane, Electric Resistance, Heat Pumps, or ETS*
Air-Source Heat Pump (ASHP) $2,500 per ton**
Heat pump equipment installed must be used for some or all heating needs.If oil or propane-fired system will supplement heat pump usage, either
- integrated controls listed at MassSave.com/cihpqpl must be installed, or
- customer must certify that an existing building control system is capable of operating both the heat pump and fossil-fuel fired heating equipment in parallel, subject to the stated switchover temperature. Documentation of control sequence may be required.
Mass Save Commercial & Industrial Heat Pump Qualified Products List at MassSave.com/cihpqpl Air-Source Variable Refrigerant Flow Heat Pump (VRF) $3,500 per ton** Ground Loop Heat Pump (GLHP) or Ground Water Heat Pump (GWHP)*** $4,500 per ton**
*Buildings primarily heated with natural gas are not eligible for CMLP’s heat pump rebates, but may apply for similar rebates through Mass Save.
**Tons are calculated based on AHRI cooling capacity divided by 12,000 BTU/hr.
***Heat pumps that use a hydronic or water loop internal to the building (i.e. not a ground loop) as a heat source/sink are not eligible for CMLP rebates at this time.
- Rebate not to exceed project cost, which is documented by invoices and/or receipts. In-house labor does not count towards the cost of the project.
- A customer is eligible for a maximum of $50,000 in heat pump rebates every 3 years. A "customer" is defined by a unique customer number in CMLP's billing system. In most cases, a customer with multiple accounts will have the same customer number assigned to them. However, if a business or property owner or manager has multiple customer numbers in CMLP's billing system, CMLP can, at its sole discretion, define them as a single customer.
- If the property is sold, the new account holder’s cap resets at $50,000 every three years, regardless of rebates awarded to previous account holders.
Rebate cannot be combined with a National Grid/Mass Save rebate for the same equipment.
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Energy Audits and Weatherization
CMLP encourages you to to identify and implement measures that will prepare your building for a heating system upgrade, such as sealing and insulating your ductwork and/or building. A can help you identify appropriate, cost-effective improvements.
Equipment must be installed by a licensed contractor, unless completed by in-house licensed tradespeople.
Heat pump installations completed by in-house licensed tradespeople are eligible for rebates under the following conditions:
- A licensed electrician obtains an electrical permit and does the wiring. The installation must pass an electrical inspection.
- If the project involves sheet metal work beyond minor repairs, a tradesperson qualified to obtain a sheet metal permit must do so. The sheet metal work must pass a building department inspection.
- When applicable, refrigerant lines must be charged, sealed, and tested by a licensed professional to adhere to EPA regulations (some self-install systems are pre-charged and pre-sealed). If an existing HVAC system is being decommissioned, existing refrigerant must be properly recaptured.
- The rebate cannot exceed the cost of the project, which is documented by invoices and/or receipts. Therefore, in-house labor would not count towards the cost of the project.
Town Building Department Permit and Inspection Requirements
Heat Load Calculation Requirement for Heat Pumps Serving a Newly Constructed Addition + Some or All of an Existing Building
If the heat pump system installed will serve some or all of an existing building plus a newly constructed addition, a heat load calculation (i.e. energy model, Manual N or Manual J report) for the entire space to be conditioned by the heat pump must be provided with the rebate application. The heating capacity of the heat pump system installed must be at least 90% of the heat load at the design temperature. Since CMLP does not provide rebates for heat pumps solely serving new construction, the heat load calculation will help CMLP verify that the heat pump system installed is sized to serve part or all of the existing building as well as the new addition.
CMLP does not require a heat load calculation for heat pumps installed solely to serve an existing building. However, to help ensure proper heat pump sizing, a heat load calculation is strongly encouraged for all whole-building applications.
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- Any rebate of $750 or less is issued as a credit on your electric bill.
- Any customer in good standing may choose to receive a rebate over $750 as either a bill credit or a check from the Town. Indicate your preference on your rebate application.
- If a customer requesting a check has been in arrears frequently in the past two years, CMLP may apply all or part of the rebate as a bill credit rather than as a check.
- A rebate check will arrive in 4 – 6 weeks after rebate payment request approval.
- Commercial entities receiving checks for $600 or more will get a 1099 from Town for the relevant tax year, if required by tax code.