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.
| Explore More Topics: 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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- CMLP's rebates are available for new heat pumps installed in existing buildings, or in major renovations of existing buildings in which oil, propane, electric resistance (e.g. electric baseboard) or a pre-existing heat pump is the current primary heating system. The new heat pumps may supplement or replace the existing heat system. Buildings primarily heated with natural gas are not eligible for CMLP’s rebates, but may apply for similar rebates through Mass Save.
- CMLP's rebates are not available for heat pumps installed in newly constructed buildings.
- CMLP's rebates are available for heat pumps installed in newly constructed additions only if the heat pump installed is designed to serve some or all of an existing building plus a newly constructed addition attached to the existing building.
- Buildings with Small General Service (G1), Medium General Service (G2) or Large General Service (G3) electric rate accounts are eligible for CMLP's business rebates. Look at the monthly service charge on your electric bill. If it matches one of the service charges in the small table below the bill image, you are a G1, G2, or G3 customer with CMLP.
2023 Commercial Rates Small
(G1)Medium
(G2)Large
(G3)DemandkW used
/ month0-20 kW 20-200 kW 200+ kW CMLP CategoryG1 G2 G3 Service Charge $ /
month$18.50 $54.60 $441.00
- Buildings with residential service rate accounts are eligible for CMLP's business heat pump rebates if:
- the building is owned by a residential condominium association and is fully or partially used for non-residential purposes (e.g. fitness center, clubhouse, management office) or
- the building has a Use Code in the "Land Use" section of the property record in the Concord Assessor's database in which the first three digits are "111" or higher. This includes apartment buildings with 4 or more units, and non-transient and transient group quarters.
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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 Cap:
- 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.
Rebate Eligibility for Multi-Unit Properties
In addition to being available for businesses of all types, CMLP's commercial heat pump rebates are available for the following types of multi-unit properties:
- Residential condominium association-owned buildings used partially or fully for non-residential purposes (e.g. management office, clubhouse, fitness center)
- Apartment buildings with 4 or more units
- Transient or non-transient group quarters (includes nursing homes, care & treatment facilities, residence halls & dorms)
- Multi-tenant non-residential commercial buildings
The way in which CMLP applies its heat pump rebate policies to different types of multi-unit properties is based upon:
- Property type classification codes known as “Use Codes,” that are displayed in the “Land Use” section of each property record in the Concord Assessor’s database.
- Electric service addresses in CMLP’s billing system.
Click here to see how CMLP’s heat pump rebate policies apply to each of the multi-unit property types listed above.
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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 tight, well-insulated building optimizes heat pump performance, and may allow for a smaller heat pump to be installed, saving you money upfront and on your monthly utility bills. CMLP-sponsored energy audits can help you identify appropriate, cost-effective improvements.
License Requirements
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
Electrical Permits and Inspections
The project electrician must apply for a Town electrical permit before work begins and schedule an electrical inspection after the work is done. CMLP will not award rebates until projects have passed an electrical inspection by Concord's Building Department.
Concord has online permitting, so the electrician does not have to go into the Building Department office in person to obtain a permit. The electrician can upload their liability insurance certificate and license and can pay online.
Electrical inspections are done on weekdays and can usually be completed within 5 to 7 days of the request. The building owner cannot schedule the inspection. The electrician schedules it by calling the Electrical Inspector at 978-318-3235 between 7am and 9am Monday through Friday with the permit number and the desired inspection date and time. Messages left for the Electrical Inspector after 9am will be returned the next morning.
Sheet Metal Permits and Inspections
If the project requires sheet metal ducting work that goes beyond minor repairs, a sheet metal permit must be obtained for the project. Examples of projects that require a sheet metal permit include installation of new ducting or replacement, significant repairs or changes to existing ducting. The Town of Concord's inspector must have inspected and approved the sheet metal work.
The process for getting sheet metal permits follows the same process as getting an electrical permit. The permit holder, typically the sheet metal contractor, must call the Building Dept. to schedule sheet metal inspections at (978) 318-3280. The Building Department's hours are here.
Electrical and sheet metal inspection approval dates must be entered in the heat pump rebate application. CMLP will verify the inspection approval dates using the Town's online permitting database.
Earliest Eligible Installation Date
The heat pump equipment must have been installed on or after January 1, 2023 to be eligible for a rebate. The installation date is the latter of the Concord Building Department's:
- electrical inspection approval date or
- sheet metal inspection approval date (applicable if the project requires sheet metal ducting work that goes beyond minor repairs)
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.
Shared Savings Arrangements
At this time, CMLP does not provide rebates for heat pumps installed by a contractor under a shared savings arrangement, in which the contractor’s compensation is based on the savings achieved.
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Preliminary Step: Ensure that the heat pump installation has passed a Town of Concord Building Department electrical inspection and, if applicable, a sheet meal inspection in the rebate application. You will need to enter the inspection approval date(s) in the rebate application. Find out more about permits and inspections in the "Eligibility Criteria for Heat Pump Projects" section on this page. The Building Department's contact information and hours are here.
Rebate Application Step: Click the "Apply" button below for the rebate application, and complete it with assistance from your installer or from Jan Aceti, CMLP's Energy Efficiency and Electrification Coordinator (jaceti@concordma.gov or 978-318-3151). Upload the following documents with the rebate application.
- if heat pump was installed by an outside contractor, invoice from the heat pump installer showing:
- installation company/contractor information
- installation address
- equipment model numbers (including indoor model numbers, where appropriate)
- integrated control model numbers, if required.
- if installed by in-house tradespeople, receipt(s) for heat pump equipment and materials used in installation, showing;
- delivery address
- equipment model numbers (including indoor model numbers, where appropriate)
- integrated control model numbers, if required.
- energy model, Manual N or Manual J heat load report, if heat pump is designed to serve some or all of an existing building plus a newly constructed addition attached to the existing building.
- a copy of your W-9 form, if the rebate requested is $600 or more and in the form of a check.
CMLP's 90-day rebate application window begins on the latter of the Concord Building Department's:
- electrical inspection approval date or
- sheet metal inspection approval date (applicable if the project requires sheet metal ducting work that goes beyond minor repairs)
Projects for which CMLP does not receive a rebate application within the 90-day window are not eligible for a rebate.
If an application received by CMLP is incomplete or has not met all of the rebate requirements, CMLP will reach out once to the installer and to the customer by both phone and email. If outstanding issues are not resolved within 30 days of the communication, the project will no longer be eligible for a rebate.
The Town of Concord assumes no liability for any equipment, installation or damages.
The Town may inspect equipment to verify the above information up to 1 year after receiving the rebate application.
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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.
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Contact Jan Aceti, CMLP's Energy Efficiency & Electrification Coordinator, at jaceti@concordma.gov or 978-318-3151.