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We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
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Combine solar panels and a heat pump to eliminate both your electricity and heating bills. Massachusetts offers the strongest incentive stack in New England: $8,500 Mass Save + HEAR (pending) + SMART 3.0 + HP electric rate + ConnectedSolutions.
Massachusetts homeowners spend an average of $2,200/year on electricity and $3,500/year on heating fuel (oil, gas, or propane). A solar + heat pump bundle addresses both costs simultaneously.
Your solar panels generate the electricity your heat pump needs. During summer, excess production banks net metering credits for winter.
A heat pump replaces oil, gas, or propane heating entirely. No more fuel deliveries, no more combustion. One electric bill covers everything.
Massachusetts programs are designed to stack: Mass Save + SMART 3.0 + ConnectedSolutions + HP rate + tax exemptions. HEAR will add more when launched.
With a battery, you are fully insulated from grid outages and utility rate increases. Your home generates, stores, and heats with its own energy.
Here is what a typical Massachusetts solar + heat pump bundle costs in 2026, broken down by component. The 25D solar ITC is expired, but state and utility incentives substantially reduce cost.
Standard Income (above 150% AMI)
~$37,087
solar + HP after rebates (cash purchase)
Moderate Income (80-150% AMI)
~$33,087
+ $4,000 HEAR HP rebate (pending)
Low Income (below 80% AMI)
~$29,087
+ $8,000 HEAR HP rebate (pending)
Combined Annual Savings: $5,000-$6,000/year
Net metering credits + eliminated fuel bill + HP rate savings + SMART 3.0 income
Massachusetts offers more stackable incentives for a solar + heat pump bundle than any other state. Here is every program, its amount, and its current status.
| Program | Amount | Applies To | Status |
|---|---|---|---|
Mass Save Whole-Home HP Rebate | $8,500 | Heat Pump | Active |
Mass Save Sizing Bonus | $500 | Heat Pump | Active |
Mass Save Weatherization Bonus | $500 | Heat Pump | Active |
HEAR Rebate (low-income, pending in MA) | Up to $8,000 | Heat Pump | Income-Eligible |
HP Electric Rate (Nov-Apr) | $540-$1,080/yr | Heat Pump | Active |
SMART 3.0 ($0.03/kWh x 20 yr) | $396/yr | Solar | Active |
MA State Tax Credit (15%) | $1,000 max | Solar | Active |
Sales Tax Exemption (6.25%) | ~$2,173 saved | Solar | Active |
Property Tax Exemption (20 yr) | ~$500-$700/yr | Solar | Active |
ConnectedSolutions (10 kW battery) | $2,250-$3,250/yr | Battery | Active |
Net Metering (1:1 retail) | ~$3,600/yr | Solar | Active |
Section 25D (homeowner ITC) | $0 | Solar | EXPIRED |
Section 25C (HP tax credit) | $0 | Heat Pump | EXPIRED |
Section 25D and 25C: EXPIRED. There is $0 in federal tax credits for homeowner solar or heat pump purchases in 2026. If a contractor or website claims you can get a 30% federal credit, they are providing outdated information. The third-party Section 48/48E credit (PPA/lease) is still active for projects beginning construction before July 4, 2026.
With the 25D ITC expired, how you finance your solar system matters more than ever. Third-party ownership (PPA/lease) allows the system owner to claim Section 48 and pass savings to you. Here is how each option compares.
ITC: $0 (25D expired)
Best for: Maximum long-term savings, equity
ITC: Owner claims Sec 48 (30% ITC) — lower rate for you
Best for: Low upfront cost, immediate savings
ITC: $0 ITC, but full ownership
Best for: Ownership without large upfront cost
The heat pump electric rate is often overlooked in bundle calculations, but it compounds powerfully with solar net metering. Here is how the two work together across seasons.
Solar produces maximum electricity. Excess power banks net metering credits at 1:1 retail rate (~$0.28-$0.33/kWh). Heat pump runs in efficient cooling mode. Credits accumulate.
HP electric rate kicks in at $0.18-$0.19/kWh (vs. $0.28-$0.33 standard). Solar still produces some power. Banked net metering credits offset non-heating usage. HP rate cuts heating cost.
Solar covers summer bills and builds credits. HP rate slashes winter heating costs by 32-45%. SMART 3.0 adds $396/year. Total annual energy cost drops to near zero for many homes.
Combined Savings Estimate: $5,000-$6,000/Year
Eliminated heating fuel (~$2,200-$3,500/yr) + net metering bill credits (~$3,600/yr for 11 kW) + HP rate discount ($540-$1,080/yr) + SMART 3.0 ($396/yr) minus increased electricity consumption from heat pump. Net savings range depends on current fuel type and home size.
A battery is strongly recommended for all-electric homes. In addition to backup power, Massachusetts pays battery owners for grid support through ConnectedSolutions.
Read the full ConnectedSolutions guide for qualifying batteries, enrollment details, and 5-year projections.
The order matters. Installing in the right sequence ensures proper system sizing and maximizes incentive capture.
Recommended: Heat Pump First
Install the heat pump first so you can measure your actual electricity demand including heating. This data lets you properly size your solar system to cover 100% of annual usage. If you install solar first, you risk undersizing the system.
Week 1-2
Free Mass Save assessment. Manual J load calc for HP sizing. Identify weatherization needs.
Week 3-8
Install HP system. Apply for Mass Save rebate and HP electric rate. Begin measuring new electricity usage.
Week 8-20
Track 1-3 months of electricity bills with the heat pump running. This data sizes your solar system accurately.
Week 20-28
Install solar system sized to cover annual usage. Add battery for backup and ConnectedSolutions revenue.
Simultaneous Installation Option
If you need to install both at the same time (e.g., replacing a failed heating system), NuWatt can estimate your heat pump electricity demand using Manual J data and size the solar system accordingly. This is less precise than measured data but eliminates the wait. We typically add 15-20% buffer to the solar system size.
Common questions about bundling solar and heat pump in Massachusetts.
Massachusetts has the highest electric rates in the continental US (~$0.28-$0.33/kWh) and generous heat pump incentives. When you install both, solar powers your heat pump for free during daylight hours and banks net metering credits for nighttime use. The heat pump replaces oil or gas heating, eliminating a separate fuel bill entirely. Combined savings typically reach $5,000-$6,000 per year, and Massachusetts offers more stackable incentives for this combination than any other state.
No for homeowner cash/loan purchases. Section 25D (residential solar ITC) and Section 25C (heat pump efficiency credit) both expired December 31, 2025. However, if you finance solar through a third-party PPA or lease, the system owner can still claim Section 48/48E (available for projects beginning construction before July 4, 2026) and pass savings through as a lower rate. HEAR rebates (up to $8,000 for heat pumps) are pending DOE approval for MA. Mass Save rebates are available now.
A typical bundle with an 11 kW solar system and whole-home ducted heat pump costs approximately $49,760 gross. After Mass Save rebates ($9,500), the MA state tax credit ($1,000), and sales tax exemption (~$2,173), the net cost for a standard-income homeowner is approximately $37,087 cash. When HEAR launches in MA (pending DOE approval), low-income households could receive an additional $8,000, bringing cost down to approximately $29,087. Financing through a PPA makes the solar portion $0 down.
Install the heat pump first in most cases. Once your heat pump is running, you can accurately measure your new total electricity demand (house + heating). This lets you properly size your solar system to cover 100% of annual usage. If you install solar first without knowing your heat pump load, you may undersize the system and still have a significant winter electric bill. Heat pump installation also takes less time (1-3 days vs. 1-2 weeks for solar).
Yes, and they stack powerfully. The HP electric rate gives heat pump owners a discounted electricity rate during November through April: approximately $0.18/kWh (Eversource) or $0.19/kWh (National Grid) instead of the standard $0.28-$0.33/kWh. Solar net metering credits offset your total bill, and the HP rate reduces the cost of any grid electricity your heat pump consumes. In summer, solar produces excess credits. In winter, the HP rate cuts heating costs on grid-drawn power.
A battery is not required, but in Massachusetts it is strongly recommended. ConnectedSolutions pays battery owners $225-$275 per kW annually for demand response. The SMART 3.0 battery adder adds another $0.04/kWh. A 10 kW battery can earn $2,750-$3,250/year from ConnectedSolutions alone. The battery also provides backup power during outages, which is valuable when your home runs entirely on electricity (no gas backup).
For a cash purchase, the typical payback period is 7-9 years on the full bundle. The heat pump portion pays back faster (4-6 years) because of the large Mass Save rebates. The solar portion takes longer without the federal ITC (9-11 years for solar alone). With a third-party PPA for solar, you save from day one on electricity but do not build equity. After payback, all savings are pure return for the remaining 15-20 years of system life.
Without a battery, your heat pump stops during an outage because it requires grid power. With a battery (recommended for all-electric homes), your battery powers the heat pump and critical circuits during outages. A 10-13.5 kWh battery can run a heat pump for 4-8 hours during an outage. During daytime outages, solar can recharge the battery while running the heat pump simultaneously.
NuWatt handles everything: Manual J sizing, Mass Save application, solar design, SMART 3.0 enrollment, ConnectedSolutions setup, and HP rate enrollment. When HEAR launches in MA, we handle that too. One team, one call.
Complete guide to Mass Save tiers, HEAR, and 0% HEAT Loan.
Read moreWhat solar costs in Massachusetts by system size and financing.
Read moreEarn $2,250-$3,250/year from battery demand response.
Read more$0.03/kWh for 20 years plus battery adder.
Read moreSave $45-$141/month on heating with the discounted rate.
Read moreCash vs. loan vs. PPA/lease in 2026 without 25D.
Read moreMass Save 2026 heat pump rebate program: masssave.com, effective January 2026.
SMART 3.0 program rates: MA DOER, Program Year 2026 tariff schedule.
ConnectedSolutions rates: Eversource and National Grid 2026 program rates.
MA solar costs: EnergySage MA Solar Marketplace, Q4 2025 data ($3.16/W average).
Section 25D/25C expiration: One Big Beautiful Bill Act (OBBBA), signed July 4, 2025.
Section 48/48E: IRA commercial ITC, projects beginning construction before July 4, 2026.
HEAR rebates: U.S. Department of Energy, energystar.gov/hear.