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Get a Free QuoteReading, North Reading, Wilmington, and Lynnfield Center homeowners can't use Mass Save — but RMLD runs its own program with the highest new-install rate of any MA municipal utility: $2,000/ton up to $8,000, plus 50% weatherization and a 0% loan to $40,000 through Reading Cooperative Bank.
Verified against rmld.com June 10, 2026. Federal 25C tax credit EXPIRED Dec 31, 2025.
RMLD pays $2,000 per ton for a whole-home (primary heating) air-source heat pump that is a new installation, capped at $8,000 — the highest new-install rate of any Massachusetts municipal light plant. Replacing an existing heat pump pays $400/ton up to $4,000. RMLD also covers 50% of weatherization up to $3,500 (a mandatory precondition for the whole-home rebate) and offers a 0% loan of $10,000–$40,000 through Reading Cooperative Bank. RMLD customers in Reading, North Reading, Wilmington, and Lynnfield Center cannot use Mass Save — this is their program instead.
Mass Save is funded by an energy-efficiency surcharge that appears on the bills of investor-owned utility customers (Eversource, National Grid, Unitil). RMLD is a municipal light plant — its customers don't pay that surcharge, so they are not eligiblefor Mass Save heat pump rebates. Town .gov pages and generic “MA heat pump rebate” articles get this wrong constantly.
RMLD runs its own heat pump program (administered by Abode Energy Management, effective March 5, 2025). For a new whole-home install it actually pays the highest per-ton rate of the six MA municipal light plants— $2,000/ton — and adds 50% weatherization plus a 0% loan up to $40,000. One nuance: if you heat with natural gas, your gas utility may still have Mass Save gas-side offers.
| Feature | RMLD Program | Mass Save (IOU, for reference) |
|---|---|---|
| Who runs it | RMLD (admin: Abode Energy Mgmt) | IOUs via Mass Save |
| Whole-home new install | $2,000/ton, up to $8,000 | $2,650/ton, up to $8,500 |
| Whole-home replacement | $400/ton, up to $4,000 | Same $2,650/ton tier |
| Weatherization | MANDATORY — 50%, up to $3,500 | Bonus, not a precondition |
| Financing | 0% loan, $10K–$40K (Reading Co-op Bank) | 0% HEAT Loan, up to $25K |
| Heat pump water heater | No rebate (removed Dec 2024) | Rebate available |
| Eligibility | RMLD electric customers only | Eversource / NGrid / Unitil only |
Mass Save whole-home standard ($2,650/ton, up to $8,500) shown for comparison only. RMLD customers are not eligible for it; RMLD's own amounts apply.
The defining feature of RMLD's program is the steep gap between a new install and a replacement. A first-time electrification earns five times the per-ton rate of a like-for-like heat pump swap.
Cap: $8,000 maximum
Heat pump becomes the primary heating system, fully displacing oil, propane, or electric-resistance heat. RMLD pays the highest new-install rate of any MA municipal light plant.
Cap: $4,000 maximum
Replacing an existing heat pump (not a fossil-fuel system) with a new one. The lower amount is by design — RMLD weights its budget toward first-time electrification, not like-for-like swaps.
Cap: $3,000 maximum
A heat pump that supplements, rather than replaces, your existing heating system (for example, conditioning an addition or a few rooms).
Cap: $2,000 maximum
Swapping out an existing supplemental heat pump for a new partial-load system.
One whole-home rebate per account per 10 years. RMLD limits the whole-home incentive to once per account per decade, so the time to claim the full $8,000 is when you first electrify, not on a later swap. All equipment must be on the NEEP cold-climate ASHP list, and outdoor units need 12 inches of ground clearance.
Federal 25C Tax Credit: EXPIRED. Section 25C ended December 31, 2025. There is $0 in federal heat pump tax credits in 2026. The RMLD rebate, 50% weatherization, and 0% Reading Cooperative Bank loan are the live incentives.
Unlike Mass Save, where weatherization is a bonus, RMLD makes air sealing and insulation a precondition of the whole-home rebate. RMLD pays 50% of that work, up to $3,500. Stacked with the $8,000 heat pump rebate, a fully electrified, weatherized home can see up to $11,500 in combined RMLD incentives before financing.
$8,000
Whole-home heat pump (new)
$3,500
Weatherization (50% of cost)
$11,500
Combined RMLD incentives
Why this is the right sequence anyway. Sealing and insulating first lowers your home's heat load, which lets your installer specify a smaller, cheaper heat pump that runs more efficiently all winter. RMLD's requirement just makes the engineering best practice mandatory.
RMLD's financing is unusually concrete: a true 0% interest loan through a named local lender, Reading Cooperative Bank. The ceiling is $40,000 — well above the $25,000 Mass Save HEAT Loan available in IOU territory — so it can cover a full electrification plus weatherization with nothing out of pocket.
0%
Interest rate
$40K
Maximum loan
7 yr
Maximum term
60 days
Install commitment window
Loan range is $10,000–$40,000. After approval, RMLD asks you to install within a 60-day window, so line up your installer before you finalize financing. Confirm current terms with RMLD and Reading Cooperative Bank when you apply.
We won't pretend otherwise: RMLD removed its heat pump water heater (HPWH) rebate in December 2024. If you are a Reading-area homeowner shopping specifically for a heat pump water heater, there is currently no RMLD rebate for it. This page's rebates apply to air-source heat pumps for space heating and cooling.
A HPWH still cuts water-heating energy use sharply, and RMLD does rebate other electrification upgrades (EV charger, panel, induction stove) listed below. We'll flag any HPWH program changes if RMLD reinstates one.
The order of operations matters: RMLD wants the application before installation, and the rebate paperwork within 180 days of your final wiring inspection.
RMLD makes weatherization a MANDATORY precondition for the whole-home rebate, not an optional bonus. Plan air sealing and insulation up front — RMLD covers 50% of that cost, up to $3,500.
RMLD requires the application to be submitted before installation begins. Equipment must be on the NEEP cold-climate ASHP list. Outdoor units need 12 inches of ground clearance for snow.
RMLD offers a 0% loan of $10,000–$40,000 over up to 7 years through Reading Cooperative Bank — a named local lender. Once approved, you commit to installing within a 60-day window.
After the final electrical wiring inspection, submit your completed rebate paperwork within 180 days. RMLD processing typically takes 6–8 weeks.
A 4-ton whole-home electrification with weatherization, financed at 0%. Amounts are RMLD's own published figures, verified June 10, 2026.
Whole-home ASHP, new install (4 tons)
$2,000/ton, capped at $8,000
Mandatory weatherization (50%)
Air sealing + insulation, 50% of cost
Smart thermostat rebate
Optimizes heat pump runtime
Electric panel upgrade
If your panel needs capacity
0% loan, Reading Cooperative Bank
Covers net cost after rebates
We sequence weatherization, application, and the Reading Cooperative Bank loan so nothing is left on the table.
RMLD rebates more than heat pumps. These stack with your heat pump project — the panel upgrade and load-management device in particular support the added electric load.
Level 2 home charger rebate for RMLD customers.
Supports the added load of a heat pump or EV charger.
Smart device that shifts demand off peak hours.
RMLD pairs solar with your heat pump to cut grid use.
Replace a gas or electric-coil range with induction.
Wi-Fi thermostat that learns your heat pump schedule.
RMLD serves four communities north of Boston. If your electric bill reads “Reading Municipal Light Department,” this is your program. Lynnfield is split — only the Center district is RMLD.
RMLD headquarters on Ash Street
Full RMLD electric service
Largest service area by geography
Center district only — rest is National Grid
RMLD pays $2,000 per ton for a whole-home (primary heating) air-source heat pump that is a new installation, capped at $8,000 — the highest new-install rate of any Massachusetts municipal light plant. A whole-home replacement (swapping an existing heat pump) pays $400/ton up to $4,000. Partial-home systems pay $1,000/ton up to $3,000 (new) or $200/ton up to $2,000 (replacement). RMLD also covers 50% of weatherization up to $3,500, which is a mandatory precondition for the whole-home rebate.
Solar economics in RMLD territory.
Taunton’s income-tiered MLP program.
Hingham’s adder-based MLP program.
Statewide Mass Save heat pump guide.
What a heat pump actually costs in MA.
How ccASHPs perform in New England winters.
Switching off oil heat in MA.
We design to RMLD's program rules — NEEP cold-climate equipment, weatherization first, and the 0% Reading Cooperative Bank loan — so your rebate clears the first time.
