State Offers Rebates, Tax Credits to Concord Light Customers for Installing Heat Pumps

From the Concord Municipal Light Plant

What is a Heat Pump?

A heat pump is a device that heats or cools a space by moving heat from one place to another.  A standard air-conditioner is a heat pump, but can only move heat from inside to outside.  A more sophisticated heat pump is able to move heat in both directions to either heat or cool a space.  Heat pumps can be centralized, ducted units that serve the entire house, or can be less expensive ductless units that serve a room or two.  Heat pumps have been used for years in milder climates.  Recently, cold-climate air-source heat pumps have been developed by several manufacturers that work well in the northeast, operating well at temperatures as low as -10°F.  Under most conditions, a modern air-source heat pump requires significantly less energy to heat a home in winter than systems that generate heat with electrical resistance or by burning wood or fossil fuels.  As a result, heat pumps have a smaller carbon footprint than these other heat sources.  The cost of heat pump use relative to other heating systems depends on the cost and efficiency of the fuel used.   

Another type of heat pump, called a ground-source (or geothermal) heat pump, exchanges heat through pipes in the ground.  This type of heat pump is typically more efficient than an air-source system, but is much more costly and disruptive to install, requiring drilling wells or excavating.

Available Tax Credits and Rebates

Right now there are several incentives available for cold-climate air-source heat pumps, depending on your current heat source and the size and efficiency of the heat pump you install. 

Currently, there are $300 of federal residential energy tax credits which expire at the end of 2016

Until late June, the Massachusetts Clean Energy Center (MassCEC) offers CMLP residential customers currently using electric resistance heat a $625 rebate per unit for up to three air-source heat pumps, and up to $6,000 under certain circumstances.  Concord residents currently heating with oil, gas, wood or propane are not eligible for these rebates.

CMLP heat pump rebates range from $170 to $3,000, and averaged $550 last year.  Regardless of current heating fuel, any resident who installs a heat pump is eligible for the CMLP rebate as long as the heat pump meets CMLP’s efficiency standards.

The Mass Energy Consumers Alliance’s Greater Boston Heat Pump program, ending in June, offers pre-vetted installers, competitive installation prices, and information about state and federal incentives.  The first step is to get a free, no-obligation visit from a program installer who can evaluate your home and heating equipment to determine if an air-source heat pump is a good option for you: http://wepowr.com/massenergy. 

Photo Credit: Muirfield Mechanical via the Concord Municipal Light Plant.