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In a June 1, 2026 announcement, the Sponsors of Mass Save kept commercial rebate levels the same but changed how the program works. Starting June 1, projects over 35 tons are processed as “custom,” and as of July 1, 2026 every commercial heat pump project will need pre-approval before equipment is installed, with the Rebate Commitment Letter window dropping from six months to four. Here is what Massachusetts businesses need to do.
July 1, 2026
Pre-approval required
all sizes, before install
35 tons
Custom threshold
over 35 tons = custom path
6 → 4 mo
RCL window cut
commitment letter duration
Unchanged
Rebate levels
process changed, not amounts
Rebate levels did not change. The process did. As of June 1, 2026, commercial heat pump projects over 35 tons (air-source, VRF, or ground-source) are processed as custom projects. As of July 1, 2026, every commercial heat pump project of any size must be pre-approved before equipment is installed — over 35 tons via a custom application, 35 tons or less via a Rebate Commitment Letter (RCL). The RCL window was shortened from six months to four. Install before approval and you risk losing the rebate.
Two dates matter. The changes apply to air-source heat pumps, variable refrigerant flow (VRF) systems, and ground-source (geothermal) heat pumps in commercial buildings.
Air-source, VRF, and ground-source heat pump projects larger than 35 tons are now processed by the program Sponsor as custom projects. Per masssave.com, the 35-ton threshold is measured on the total heat pump tonnage across all projects per customer account as of June 1, 2026 — not per individual unit or building — so multiple smaller installs under one account can add up to a custom project. They typically receive the same rebate levels, provided they meet cost-effectiveness criteria, but the Sponsor requires additional project information and a custom application.
Every commercial heat pump project, of any size, must be pre-approved before equipment is installed. Projects over 35 tons need a custom application before installation; projects of 35 tons or less need a Rebate Commitment Letter (RCL). Install first and you risk losing the rebate entirely.
The Rebate Commitment Letter duration is being reduced from six months to four. Existing RCLs are honored at their committed rebate level until they expire, and the Sponsors will reach out to contractors with existing RCLs for status updates. For projects over 35 tons, commitment-letter duration is set by the Sponsor and is often significantly longer than four months.
Rebate amounts are not being cut. Mass Save was explicit that rebate levels remain the same — this is a change to applications, timing, and commitment-letter durations, not to the money. Confirm your current per-project figures with the program Sponsor when you apply.
The 35-ton line decides everything about how you apply. Per masssave.com, that threshold is measured on the total heat pump tonnage across all projects under one customer account as of June 1, 2026 — not per unit — so add up everything on the account before you decide which path you are on.
| Project size | Program path | Document required first | When | Commitment window |
|---|---|---|---|---|
| 35 tons or less | Mass Save Heat Pumps (standard) | Rebate Commitment Letter (RCL) | Obtain before equipment is installed | 4-month commitment window |
| Over 35 tons | Custom project (program Sponsor) | Custom application | Submit before equipment is installed | Set by Sponsor — often longer than 4 months |
Source: Sponsors of Mass Save commercial program announcement, June 2026. Verify current details at the Mass Save Heat Pumps program page before applying.
The single biggest risk now is buying and installing equipment before the project is approved. As of July 1, 2026, that can forfeit the entire rebate. If your project is already moving, request pre-approval from the right pathway immediately.
For projects of 35 tons or less, the commitment window is being cut to four months from six. Equipment lead times, electrical work, and roof or mechanical scheduling all have to fit inside it, so sequence the order and install dates against the RCL from day one.
Custom projects need a custom application and additional information, and they are reviewed against cost-effectiveness criteria. Build that review time into the schedule — the Sponsor sets a commitment-letter duration that is usually longer than four months.
Pre-approval, RCLs, custom applications, and QPL verification are now front-loaded before a single unit ships. Working with a team that handles the paperwork keeps the rebate protected and the project moving.
Mass Save is funded by the investor-owned utilities — Eversource, National Grid, Unitil, Liberty, and Berkshire Gas — plus Cape Light Compact. If your building is served by a municipal light plant such as Concord (CMLP), Belmont Light, Reading (RMLD), or Wellesley (WMLP), you are not eligible for Mass Save electric heat pump rebates and should check your own municipal program, which often has its own commercial incentives. For a municipal-served project, Mass Save directs you to the gas program Sponsor for any gas-side measures.
The residential Section 25C efficiency credit expired December 31, 2025 and does not apply to commercial work. On the commercial side, a heat pump installed as part of a qualifying energy project may pair with federal incentives:
Active. Projects that began construction by July 4, 2026 locked in the full credit timing; projects that start later still qualify if placed in service by December 31, 2027. Whether a heat pump qualifies depends on the project and final IRS guidance.
Five-year accelerated depreciation remains available for qualifying commercial equipment, with 100% first-year bonus depreciation permanently restored for property placed in service after January 19, 2025.
NuWatt does not provide tax advice. Eligibility for federal credits depends on facts and circumstances and final IRS guidance; confirm with your tax advisor.
No. The Sponsors of Mass Save stated that rebate levels remain the same. What changed is the process: as of June 1, 2026, projects over 35 tons are processed as custom projects, and as of July 1, 2026, every commercial heat pump project of any size requires pre-approval before installation. The Rebate Commitment Letter window was also shortened from six months to four. Confirm your current per-project rebate figures with the program Sponsor when you apply, because published amounts can change between program years.
An RCL is the document that reserves your rebate at a committed level for a Mass Save commercial heat pump project of 35 tons or less. As of July 1, 2026, you must obtain the RCL before equipment is installed to remain eligible. Request it through Mass Save Heat Pumps. The commitment window is being reduced to four months, so timing matters: get the RCL, then complete the installation inside the window.
Starting June 1, 2026, projects larger than 35 tons are handled as custom projects by the program Sponsor rather than through the standard rebate path. Per masssave.com, the 35-ton threshold is measured on the total heat pump tonnage across all projects per customer account as of June 1, 2026 — not per unit or per building — so several smaller installs on one account can combine into a custom project. You submit a custom application before installation, provide additional project information, and the project is reviewed against cost-effectiveness criteria. Custom projects typically receive the same rebate levels when they qualify, and the Sponsor sets the commitment-letter duration, which is often longer than the four-month standard window. Custom applications go through your electric Mass Save Sponsor; for equipment or QPL questions, the program’s commercial rebates team can be reached at macommercialrebates@resource-innovations.com.
Not safely. As of July 1, 2026, pre-approval is required before equipment is installed for every commercial project. Installing first puts your rebate at risk. If a project is already underway, request pre-approval from the appropriate pathway as soon as possible. The whole point of the change is that approval comes before you buy and install the equipment.
Mass Save is funded by the investor-owned utilities (Eversource, National Grid, Unitil, Liberty, Berkshire Gas) and Cape Light Compact. Customers of a municipal light plant — such as Concord Municipal Light Plant (CMLP), Belmont Light, or Reading (RMLD) — are not eligible for Mass Save electric rebates and should check their own municipal program. For a project served by a municipal light and power company, Mass Save directs you to contact the gas program Sponsor regarding any gas-side measures.
The updates apply to air-source heat pumps (ASHP), variable refrigerant flow (VRF) systems, and ground-source (geothermal) heat pumps installed in commercial buildings. The 35-ton threshold and the pre-approval requirement apply across these technologies.
The residential Section 25C efficiency credit expired December 31, 2025 and does not apply to commercial projects. On the commercial side, a heat pump installed as part of a qualifying energy project may be able to use the Section 48E investment tax credit. Projects that began construction by July 4, 2026 locked in the full credit timing; projects that start later still qualify if they are placed in service by December 31, 2027. It is often combined with MACRS depreciation, including 100% first-year bonus depreciation. Eligibility depends on facts and circumstances and final IRS guidance — confirm with your tax advisor. NuWatt does not provide tax advice.
NuWatt manages the RCL, custom application, and QPL verification for commercial heat pump projects across Massachusetts so your rebate stays protected and your timeline stays on track.
Questions on a specific project? Call NuWatt at (877) 772-6357.