MGED Rebates for Heat pump Technology - What you need to know

Types of Heat PumpsNew technology has made today’s heat pumps a great dual heating and cooling option here in New England.  You can reduce your energy costs, improve the comfort of your home and save energy and money.

MGED offers rebates for air-source heat pump technology for both ductless mini-split and central ducted types. Before you purchase, please review all of the eligibility criteria and process. You must have a free qualified home energy evaluation (audit) completed within the last 2 years before installing this new system to pre-qualify for your rebate.

What is an Air-Source Heat Pump?

While traditional systems burn fuel to create heat, a heat pump instead works by drawing heat from the surrounding air. They work in a similar way to air-conditioners but in reverse, using a transfer of heat over coils extracting heat from the air which is moved into and out of your home. That’s why they work both as a heating system and a cooling system.

Benefits: Though they require electricity to operate, people who currently have conventional electric resistance or propane-fueled heating systems can save 50% - 70% on energy costs by heating with an air-source heat pump instead.  At current fuel prices, oil heating households can save up to 30%. If you have a separate central air system that you are replacing, your savings is multiplied!


All qualifying equipment must be listed in the CEE/AHRI Verified Directories as meeting or exceeding the efficiency minimums.
Rebates Offered:
Ratings Minimums
Rebate Amount
Ductless Mini Split
SEER =18, HSPF=10
$500/system single outside unit - maximum of 2 units per year
Ducted Central Heat Pump
SEER =19, HSPF =10.6$1,000 per individual unit
Replacement BONUS - when replacing central AC or older HP
SEER =19, HSPF =10.6$500 (combined maximum of $1,500)

Heat Pump Rebate program requirements

To participate, you must:

  • Be a permanent MGED residential electric customer who resides in a single-family detached, single-family attached (up to four dwelling units) or mobile home or apartment/condo (up to four dwelling units).
  • Have a pre-qualifying Home Energy Evaluation (audit) completed within the last 2 years before installation of your system. The new evaluation will help in the understanding of potential energy savings with adequate insulation levels. --Due to the pandemic emergency actions, in home energy evaluations are suspended until restrictions are lifted. Please contact Energy New England for equivalent steps to pre-qualify.--
  • Have the qualified system installed by a contractor licensed to install residential space conditioning systems.
  • Replace or supplement an existing central heat system with the specified high-efficiency heat pump system that meets minimum efficiency ratings.
  • Allow, upon request, MGED or our agent to inspect the installed unit to verify compliance with rebate requirements.
  • Please note: newly constructed homes do not qualify.

Application must include:

  • Paid invoice after installation.
  • AHRI certificate (PDF, photo or online verification shot) showing the make, model and certificate number
  • Unit documents showing the Make, Model # and description of indoor/outdoor units
  • If applying for the replacement bonus: Removal confirmation of Central A/C  or HP unit on either the invoice or disposal/haul-away documentation

Where to start?

NEEP Heat Pump Purchasing GuideRead the Northeast Energy Efficiency Partnerships’ Air source Heat Pump Buying Guide. NEEP it is one of six Regional Energy Efficiency Organizations (REEOs) funded, in part, by US Department of Energy to support state efficiency policies and programs.

The Guide will explain:

  • The basics of heat pump operation
  • How to shop for your heat pump like a pro
  • With step by step instructions and
  • Checklist of questions to ask your installer


What does this mean?

SEER = Seasonal Energy Efficiency Ratio – a commonly used rating for cooling efficiency technology – the higher the number, the more efficient the system

HSPF = Heating Seasonal Performance Factor – a standard efficiency rating for heat pump technology – the higher the number, the more efficient the system

AHRI listing =  Certification from the Air Conditioning, Heating and Refrigeration Institute confirms the systems as listed and as combined perform as specified by their ratings.