Heat pumps and mini-splits are highly efficient electric heating and cooling systems that can be installed to heat and cool part and/or all of your home. With HG&E's low electric rates, they also have one of the lowest annual heating costs of any heating system type in Holyoke. Visit our heat pump and mini-split educational webpage if you would like information on how they work, how to find an installer, how much it costs to heat with a heat pump vs. other heating fuels, etc. Not sure where to start? Consider checking out our step-by-step guide!
Heat Pump and Mini-Split Incentives
HG&E Rebates:
Basic Heat Pump and Mini-Split Rebate
x
$250/ton up to $1,000 for qualifying heat pump and mini-split systems.
Learn More
Whole-Home Air Source Heat Pump Program
x
Higher rebate of $600-$750/ton available for qualifyig mini-splits and heat pumps that are sized to provide 100% of the home's heating needs. Higher weatherization rebate of 75% of cost up to $3,000 available as well.
Learn More
Whole-Home Ground Source Heat Pump Program
x
Rebate of $600-$750/ton available for qualifyig ground source heat pumps that are sized to provide 100% of the home's heating needs. Higher weatherization rebate of 75% of cost up to $3,000 available as well.
Residential Energy Assistance Program
x
Financial assistance at 0% interest for various projects including heat pumps/mini-splits, gas furnaces and boilers, central ACs, water heaters, weatherization, EV charging infrastructure and solar PV.
Learn More
Connected Homes
x
Receive a $5-$8/month incentive for allowing HG&E to remotely adjust the temperature of heat pump or mini-split system a few times each month (Must have qualifying thermostat or heat pump controller).
Learn More
Free Home Energy Audit to Determine How Much You Will Save if you Install Heat Pumps
x
Get a free customized assessment of your home to help determine the most cost-effective ways to reduce your energy bills. Let your energy auditor know you are interested in heat pumps and they can also include information in your energy audit report on how much you will save on your heating/cooling costs if you install heat pumps. You can also talk to the energy auditor about how much you'd save if you install a whole-home heat pump system vs installing a smaller system, perhaps in the rooms you use the most.
Learn More
non-hg&e heat pump-related incentives:
Home Efficiency Rebates ("HER") Program
x
The Inflation Reduction Act, which was signed into law in August 2022, includes new rebates through the Home Efficiency Rebates ("HER") program for qualifying energy efficiency upgrades such as space-heating and weatherization in 1-4 family homes. Upgrades must be predicted to save at least 20% of the home’s energy use. The most recent update we have (as of September 18th) is that the DOER has released the RFP for administrator of the HER funding on 9/12/25. The application process and eligibility requirements are still unclear.
Low-Income Weatherization Assistance Program (WAP)
x
This program, administered by Springfield Partners for Community Action (413-263-6500), is available for homeowners or tenants and provides free weatherization work including insulation, air sealing, replacement windows (current windows must be single-pane to qualify), weatherstripping, asbestos abatement, knob-and-tube wiring removal, free home energy audits, and a free heating system test to make sure the system is working properly (If a heating system repair is needed, this can potentially be covered through the HeartWAP program). The amount of funding available depends on the home’s needs (no min/no max). Must be on fuel assistance to qualify.
Rental Neighborhood Improvement Program
x
This program is offered through OneHolyoke CDC and provides low-interest loans of up to $21,000/unit available for multi-family rental properties with low-income tenants for various building improvements.
Low-Interest Financing
x
Various companies offer low-interest financing options to help with energy efficiency projects such as heat pump installations. For example, People's Bank offers an Energy Efficiency Home Equity Loan with a lower interest rate available for energy efficiency projects. Mitsubishi Diamond Contractors also offer a Mitsubishi Synchrony Financing option.
Alternative Energy Certificates
x
The Massachusetts Department of Energy Resources provides the owners of qualifying whole-home heat pumps, solar hot water heaters and woody biomass (wood pellet and wood chip) systems with Alternative Energy Certificates (AECs), which can be sold to receive a financial incentive. The DOER encourages system owners to work with "Aggregators" who can submit your application and sell your AECs on your behalf, for a fee. Here is a link to a list of aggregators located on the DOER program webpage. You can use this APS Renewable Thermal AEC Calculator provided by the DOER to estimate the value of this incentive. Based on conversations with various aggregators in April 2025, the estimated value per AEC was approx. $3. Please reach out to an aggregator for more information, eligibility requirements, and estimates on the value of this incentive.
Additional Incentives
x
Additional incentives that we are aware of are located on our main rebates and incenitves webpage.