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Get a Free QuoteCompare HEAT Loan (0% APR), HELOC, personal loans, cash, and more. The federal 25C tax credit is dead — financing is your biggest lever for making heat pumps affordable.
Last updated March 2026 | Federal 25C tax credit EXPIRED Dec 31, 2025
The Mass Save HEAT Loan is the best financing option for most Massachusetts homeowners: 0% APR, up to $25,000, no fees. Combined with up to $8,500 in Mass Save rebates, a typical $12,000 ducted heat pump costs just $3,500 out-of-pocket, financed at $42-$97/month depending on your income tier. For projects exceeding $25,000 (whole-home + insulation), a HELOC at 7-9% APR provides additional borrowing capacity. The federal Section 25C tax credit expired December 31, 2025 — there is no federal help in 2026.
The Section 25C energy efficiency tax credit (up to $2,000 for heat pumps) expired on December 31, 2025. In 2026, there is $0 federal tax credit for heat pumps, insulation, or weatherization. This makes the Mass Save HEAT Loan and rebates your most important cost-reduction tools. Do not rely on outdated information showing federal credits.
From 0% interest government-backed loans to HELOC and cash — here is every option available to Massachusetts homeowners in 2026, ranked by overall value.
Mass Save HEAT Loan
APR
0%
Term
3-7 years (income-tiered)
Max Amount
$25,000
$12K Monthly
$171-$333/mo
Best for: Most MA homeowners — best all-around option
Home Equity Line of Credit (HELOC)
APR
7-9%
Term
10-20 years
Max Amount
$50,000+
$12K Monthly
$93-$140/mo
Best for: Large whole-home projects exceeding $25K
Personal / Home Improvement Loan
APR
8-15%
Term
3-7 years
Max Amount
$50,000
$12K Monthly
$186-$293/mo
Best for: Homeowners without equity or who want fast funding
Cash Payment
APR
0%
Term
Immediate
Max Amount
Unlimited
$12K Monthly
$12,000 upfront
Best for: Homeowners with savings who want lowest total cost
Credit Card (0% Intro APR)
APR
0% then 20-29%
Term
12-21 months promo
Max Amount
$5,000-$15,000
$12K Monthly
$571-$1,000/mo (to pay in promo)
Best for: Small single-zone installs ($3K-$5K) paid within promo period
Propel Concert Loan
APR
8.99%
Term
25 years
Max Amount
$135,000
$12K Monthly
~$107/mo
Best for: Solar+HP bundles in ME/TX only (listed for context)
Based on a $12,000 heat pump installation. HEAT Loan assumes 5-year (60-month) term. HELOC assumes 8% APR / 10-year term. Personal loan assumes 10% APR / 5-year term.
| Option | APR | Term | Max Amount | Monthly ($12K) | Total Interest | Total Paid | Key Requirement |
|---|---|---|---|---|---|---|---|
| HEAT Loan | 0% | 3-7 yr | $25,000 | $200 | $0 | $12,000 | Mass Save HEA |
| HELOC | 7-9% | 10-20 yr | $50K+ | $146 | $5,520 | $17,520 | Home equity |
| Personal Loan | 8-15% | 3-7 yr | $50,000 | $255 | $3,300 | $15,300 | Credit 660+ |
| Cash | 0% | Upfront | Unlimited | $12,000 | $0 | $12,000 | Savings |
| 0% Credit Card | 0% then 20%+ | 12-21 mo | ~$5K-$15K | $667 | $0* | $12,000* | Credit 740+ |
| Propel | 8.99% | 25 yr | $135,000 | $101 | $18,300 | $30,300 | ME/TX only |
* 0% credit card assumes full balance paid within promotional period. After promo, 20-29% APR applies to remaining balance.
For most Massachusetts homeowners, the HEAT Loan is the obvious choice. Here is everything you need to know about qualifying, applying, and maximizing it.
Get a Free Home Energy Assessment
Call 866-527-7283 or schedule online at masssave.com. Assessment takes 2-4 hours.
Choose a Mass Save Participating Contractor
Your assessment report includes a list of qualified contractors in your area.
Select Qualifying Equipment
Equipment must be on the Mass Save Qualified Product List (QPL). No R-410A systems.
Apply Through Your Contractor
Most contractors handle the loan paperwork. Approval typically takes 2-5 business days.
Installation & Documentation
Contractor installs equipment, submits documentation to Mass Save for rebate processing.
Loan Serviced by Mass Save Partners
0% interest for the full term. Payments auto-deducted monthly from your bank account.
Installation Cost
$12,000
Ducted heat pump
Mass Save Rebate
-$8,500
Whole-home tier
HEAT Loan Amount
$3,500
At 0% interest
Monthly Payment
$42-$97
7yr / 5yr / 3yr
Breakdown by term: At the 7-year term (below 135% SMI): $42/month. At 5-year term (135-300% SMI): $58/month. At 3-year term (above 300% SMI): $97/month. All three pay exactly $3,500 total. Zero interest.
Real monthly payments after applying Mass Save rebates. The HEAT Loan finances only the net cost after all rebates.
Single-zone mini-split + partial rebate
| Financing | APR | Term | Monthly | Total Interest | Total Paid |
|---|---|---|---|---|---|
| HEAT Loan (7yr) | 0% | 84 mo | $42 | $0 | $3,500 |
| HEAT Loan (5yr) | 0% | 60 mo | $58 | $0 | $3,500 |
| HEAT Loan (3yr) | 0% | 36 mo | $97 | $0 | $3,500 |
| HELOC (8%, 10yr) | 8% | 120 mo | $42 | $1,540 | $5,040 |
| Personal (10%, 5yr) | 10% | 60 mo | $74 | $940 | $4,440 |
| Cash | 0% | Upfront | $3,500 | $0 | $3,500 |
2-zone system + whole-home rebate
| Financing | APR | Term | Monthly | Total Interest | Total Paid |
|---|---|---|---|---|---|
| HEAT Loan (7yr) | 0% | 84 mo | $42 | $0 | $3,500 |
| HEAT Loan (5yr) | 0% | 60 mo | $58 | $0 | $3,500 |
| HEAT Loan (3yr) | 0% | 36 mo | $97 | $0 | $3,500 |
| HELOC (8%, 10yr) | 8% | 120 mo | $42 | $1,540 | $5,040 |
| Personal (10%, 5yr) | 10% | 60 mo | $74 | $940 | $4,440 |
| Cash | 0% | Upfront | $3,500 | $0 | $3,500 |
Multi-zone or ducted + whole-home rebate
| Financing | APR | Term | Monthly | Total Interest | Total Paid |
|---|---|---|---|---|---|
| HEAT Loan (7yr) | 0% | 84 mo | $113 | $0 | $9,500 |
| HEAT Loan (5yr) | 0% | 60 mo | $158 | $0 | $9,500 |
| HEAT Loan (3yr) | 0% | 36 mo | $264 | $0 | $9,500 |
| HELOC (8%, 10yr) | 8% | 120 mo | $115 | $4,300 | $13,800 |
| Personal (10%, 5yr) | 10% | 60 mo | $202 | $2,620 | $12,120 |
| Cash | 0% | Upfront | $9,500 | $0 | $9,500 |
Honest assessment of every financing path — when it makes sense and when it does not.
The HEAT Loan is better in almost every scenario. But there are specific situations where a HELOC makes more sense — primarily when your project exceeds the $25,000 HEAT Loan maximum.
A full weatherization project with ducted heat pump ($18K), insulation ($6K), and heat pump water heater ($5K) totals $29K. HEAT Loan covers $25K; HELOC covers the rest or all of it.
HEAT Loan maximum is 7 years. A HELOC offers 10-20 year terms, reducing monthly payments significantly (though you pay more interest).
If your panel needs a 200A upgrade ($3K-$6K) on top of the heat pump, total can exceed $25K easily.
Combining heat pump with roof, windows, or other upgrades that are not fully covered by Mass Save.
For projects over $25K, the optimal strategy is to finance $25K at 0% via HEAT Loan and use a HELOC only for the amount exceeding $25K. This minimizes total interest paid.
YES
HEAT Loan (0% APR, $0 fees). This is the best option, period.
NO
Continue to next question.
YES
HEAT Loan for first $25K + HELOC for the remainder. Minimizes total interest.
NO
Continue to next question.
YES
Personal loan (8-15% APR) for speed and simplicity. Or cash if you have savings.
NO
Stick with the HEAT Loan — the HEA process is worth the savings.
YES
0% intro APR credit card is viable IF you can pay it off within the promo period.
NO
Do not use a credit card. The post-promo rates (20%+) are devastating.
Same 0% interest for everyone. Your household income determines only how long you have to repay.
| Income Tier | Term | $3,500 Loan | $10,000 Loan | $15,000 Loan | $25,000 Loan |
|---|---|---|---|---|---|
Below 135% SMI Below ~$112,000 for family of 4 | 7 years (84 months) | $42/mo | $119/mo | $179/mo | $298/mo |
135%–300% SMI ~$112,000–$249,000 for family of 4 | 5 years (60 months) | $58/mo | $167/mo | $250/mo | $417/mo |
Above 300% SMI Above ~$249,000 for family of 4 | 3 years (36 months) | $97/mo | $278/mo | $417/mo | $694/mo |
All tiers pay the exact same total. A $10,000 HEAT Loan costs exactly $10,000 to repay regardless of your term. The only difference is how much time you have. No interest is ever charged.
Complete HEAT Loan guide: application process, lender details, income verification, and tips.
Full pricing breakdown: mini-splits $3,500-$7,000, ducted $12,000-$22,000, after-rebate calculator.
Mass Save rebate tiers: whole-home $8,500, partial $8,500, basic $2,500. Bonuses and stacking.
How to vet contractors, what certifications matter, and getting the right quotes.
Pairing solar panels with a heat pump for maximum energy savings. Separate financing considerations.
What to expect during your free HEA — the required first step before applying for the HEAT Loan.
Common questions about financing a heat pump in Massachusetts.
Start with a free Mass Save Home Energy Assessment. We will help you navigate the HEAT Loan application and find the right system for your home.