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Get a Free QuoteShrewsbury isn't on Mass Save — it's on SELCO's NextZero program. Go whole-home (Tier II)and the rebate jumps to $2,000/ton air-source or $3,000/ton ground-source, up to $9,000 — then add a $1,000 decarbonization rebate for removing the old fossil system. The whole game is qualifying for Tier II.
Verified against nextzero.org/shrewsbury and selco.shrewsburyma.gov June 12, 2026. Federal 25C tax credit EXPIRED Dec 31, 2025.
SELCO (Shrewsbury Electric & Cable Operations), through NextZero, pays by tier. Tier II — a whole-home heat pump that is the home’s primary heating and cooling system — pays $2,000/ton air-source or $3,000/ton ground-source, up to a $9,000 maximum per address. Tier I — a partial or supplemental system — pays just $250/ton air-source and $750/ton ground-source. A separate $1,000 decarbonization rebate is available when the heat pump is the sole heating source and the fossil system is removed within 12 months (NextZero post-inspection required), bringing the ceiling to $10,000 per address. Total incentives, including the 0% SELCO loan, cannot exceed 100% of project cost. Shrewsbury is not on Mass Save.
SELCO's top number isn't one rebate — it's the $9,000 heat pump maximum plus a $1,000 decarbonization rebate. Both pieces require a whole-home (Tier II) design.
Tier II air-source heat pump (whole-home)
$2,000/ton; ground-source reaches the cap faster at $3,000/ton
Decarbonization rebate
Heat pump as sole heat + fossil system removed within 12 months
Total SELCO incentive ceiling
Per address — the most SELCO pays on one project
The 100%-of-cost ceiling. Total incentives — the NextZero rebate, the SELCO loan, and any future federal rebates combined — cannot exceed 100% of your total project cost. For most whole-home projects that ceiling isn't the binding constraint, but it's the rule SELCO applies.
Mass Save is funded by an energy-efficiency surcharge on investor-owned utility bills (Eversource, National Grid, Unitil). Shrewsbury is served by SELCO (Shrewsbury Electric & Cable Operations), a municipal light plant, so SELCO customers don't pay that surcharge and are not eligiblefor Mass Save heat pump rebates. SELCO runs its own program through NextZero — and on the whole-home tier it pays competitively, with a decarbonization bonus Mass Save doesn't offer.
| Feature | SELCO Program | Mass Save (IOU, for reference) |
|---|---|---|
| Who runs it | SELCO (via NextZero) | IOUs via Mass Save |
| Whole-home ASHP (Tier II) | $2,000/ton | $2,650/ton, up to $8,500 |
| Whole-home GSHP (Tier II) | $3,000/ton | Varies by tier |
| Partial-home (Tier I) | $250/ton ASHP, $750/ton GSHP | Lower partial tiers |
| Max heat pump rebate | $9,000 per address | $8,500 cap |
| Decarbonization bonus | +$1,000 for fossil removal | Not offered |
| 0% financing | SELCO Electrification & Efficiency Loan | 0% HEAT Loan, up to $25,000 |
| Eligibility | SELCO electric customers only | Eversource / NGrid / Unitil only |
Mass Save whole-home standard ($2,650/ton, up to $8,500) shown for comparison only. SELCO customers are not eligible for it; SELCO's own tiers apply. Gas-heated homes are not eligible for a SELCO heat-pump rebate at all.
Tier II pays roughly eight times the air-source per-ton rate of Tier I. The difference isn't the equipment cost — it's whether the heat pump truly carries the whole home as the primary system. These definitions are SELCO's own, quoted from the NextZero Shrewsbury page.
A heat pump that is “only a partial unit not meant to heat/cool every room in the house.” You also fall into Tier I if you haven't completed a home energy assessment in the last 3 years, haven't completed required weatherization, or keep a non-heat-pump system as your primary heat (switching to it at 32°F or warmer).
A “whole home unit that is the primary system used to heat/cool every finished room in the home.” The heat pump is sized as the sole heating source — meeting output targets at 5°F (100–140% of design load) and 47°F, with the required COP — and only switches to emergency heat at 0°F or colder.
What pushes a project from Tier I to Tier II. Four things: the heat pump must condition every finished room, you need a home energy assessment within the last three years, required weatherization has to be done, and the heat pump must be the primary heat (only switching to emergency heat at 0°F or colder). Miss any one and the project drops to the $250/ton Tier I rate. We design and document to all four so the rebate lands at Tier II.
Federal 25C Tax Credit: EXPIRED. Section 25C ended December 31, 2025. There is $0 in federal heat pump tax credits in 2026. The SELCO tier rebates, the decarbonization rebate, and the 0% SELCO loan are the live incentives.
The decarbonization rebate is the cleanest extra $1,000 in the program — but it has a specific order of operations and a hard inspection gate. Run it in this sequence and nothing slips.
The decarbonization rebate is only available when the heat pump is your sole heating source — a Tier II, whole-home design. A Tier I supplemental system does not unlock it.
The existing oil, propane, or gas system must be removed or disconnected within 12 months of the heat pump install. Keep documentation of the removal — it is what the inspection confirms.
A post-inspection by NextZero is required to verify the fossil system is gone and the heat pump is carrying the whole home. Schedule it at 888-333-7525. No inspection, no $1,000.
Once the inspection clears, the $1,000 decarbonization rebate stacks on your Tier II rebate, bringing the per-address ceiling to $10,000.
Mind the 12-month clock. The fossil system has to be removed or disconnected within 12 months of the heat-pump install, and the NextZero post-inspection has to happen to confirm it. We set the removal date and inspection at the time of install so the window never lapses.
Because Tier II pays $2,000/ton air-source against Tier I's $250/ton, the entire economics of a Shrewsbury heat-pump project turn on clearing four specific gates. Miss any one and the rebate drops to the partial-home rate. Here is exactly what each one requires, and how we handle it.
The heat pump has to heat and cool every finished room in the home — not just the main living area. A partial or single-zone install is, by definition, Tier I. We design the zoning so no finished space is left on a separate system.
Tier II requires a recent home energy assessment. If yours is older than three years — or you have never had one — the project defaults to Tier I until it is done. We schedule it early so it is never the thing holding up the higher rate.
Required weatherization measures must be completed. Beyond unlocking Tier II, a tighter envelope lowers the heat load so the heat pump can be sized smaller and run more efficiently on the coldest Shrewsbury nights.
The heat pump must be the primary heating source, only switching to emergency heat at 0°F or colder. If you keep an older system as primary and switch over at 32°F or warmer, the project is Tier I. We size the heat pump to carry the design load down to 5°F.
SELCO offers a 0% Electrification & Efficiency Loan that can finance the net cost of your project after the rebate. We don't invent the loan's terms here — the amount, term, and conditions are set by SELCO, so confirm the current figures when you apply.
Rebate first, loan for the rest. The Tier II rebate (up to $9,000) and the $1,000 decarbonization rebate come off the top; the 0% loan covers what's left, so a whole-home electrification can be done with little or nothing out of pocket up front.
Because SELCO caps total incentives (rebate + loan + any future federal rebates) at 100% of project cost, the loan principal is sized to your remaining balance after rebates — it can't push the combined support above what the project actually costs.
Loan details are published by SELCO at selco.shrewsburyma.gov/loan-program. Confirm the current rate, term, and eligibility there before you finalize financing.
We design to Tier II, sequence the fossil-system removal and NextZero inspection, and pair the 0% loan.
SELCO (Shrewsbury Electric & Cable Operations), through NextZero, pays by tier. Tier II — a whole-home heat pump that is the home’s primary heating and cooling system — pays $2,000 per ton for air-source and $3,000 per ton for ground-source. Tier I — a partial or supplemental system — pays $250 per ton air-source and $750 per ton ground-source. The maximum heat pump rebate is $9,000 per address. A separate $1,000 decarbonization rebate is available when the heat pump is the sole heating source and the old fossil system is removed within 12 months, bringing the total to $10,000 per address.
Solar economics in SELCO territory.
Peabody’s 3-ton-cap MLP program.
Reading’s highest-per-ton MLP program.
Taunton’s income-tiered MLP program.
Hingham’s adder-based MLP program.
Braintree’s Clean Comfort program.
Wellesley’s decommissioning rebate.
Concord’s highest $/ton + TOU rate.
The statewide IOU program (for reference).
What a heat pump actually costs in MA.
We design to SELCO's Tier II whole-home rules, sequence the fossil-system removal and NextZero inspection for the $1,000 decarbonization rebate, and pair the 0% SELCO loan — so Shrewsbury homeowners capture the full $10,000.