Heat Pump Rebate or 0% Interest Loan

• New heat pump system: $2,000 (two-thousand dollars) per ton up to a maximum of $8,000 (eight-thousand dollars).
• Replacement heat pump system: $400 (four-hundred dollars) per ton up to $4,000 (four-thousand dollars).
• Weatherization is required in conjunction with heat pump installation for the customer to be eligible for the heat pump rebate.
  • 50% of the cost up to $3,500 (three thousand, five hundred dollars)
  • Working with an approved Abode home performance contractor
  • If a customer has existing weatherization, existing weatherization can be demonstrated by satisfying at least one of the following requirements: (A) Home was built during or after 2010, or (B) Weatherization recommendations made during or after 2013 have been completed.
• Eligible systems are designed to condition 100% of the home's living space by volume and supply between 90-120% of the heating load at the correct design temperature for the home's location. The contractor must ensure the sizing of heat pumps reflects the energy efficiency gained through weatherization.
• Heat pump systems sized above 120% of the home's heating load may not be eligible for rebates. Please consult with Abode for more details.
• A room-by-room Manual J submission is required.
• Attestation of the disconnection of existing fossil fuel heating and cooling systems is required.
• One whole-house home heat pump rebate per RMLD account every 10 years.
• Gas customers who receive MassSave heat pump rebates are not eligible for this rebate.

The Whole-House Home Heat Pump Zero-Interest Loan is available to qualified RMLD residential customers through a partnership with the Reading Cooperative Bank.

• The term of the loan shall be no more than 7 years and shall feature a fixed-term, principal-only payment by the borrower. The minimum loan amount for this program is $10,000 (ten thousand dollars), and the maximum loan amount is not to exceed $40,000 (forty thousand dollars). The installation of heat pump systems must be completed within the 60-day loan commitment window before the loan can be closed. Please email the bank for more details or call 781-942-5000, ext. 407.
• Loan is not applicable to weatherization costs.
• Weatherization is required in conjunction with heat pump installation for the customer to be eligible for the heat pump loan.
  • 50% of the cost up to $3,500 (three-thousand, five-hundred dollars)
  • Working with an approved Abode home performance contractor
  • If a customer has existing weatherization, existing weatherization can be demonstrated by satisfying at least one of the following requirements: (A) Home was built during or after 2010, or (B) Weatherization recommendations made during or after 2013 have been completed.
• Eligible systems designed to condition 100% of the home's living space by volume and supply between 90-120% of the heating load at the correct design temperature for the home's location. The contractor must ensure the sizing of heat pumps reflects the energy efficiency gained through weatherization.
• Heat pumps sized above 120% of the home's heating load may not be eligible for incentives. Please consult with Abode for more details.
• Room-by-room Manual J submission is required.
• Attestation of disconnection of existing fossil fuel heating and cooling systems is required.
• One Whole-House Home Heat Pump Zero-Interest Loan per RMLD account every 10 years.
• Gas customers who receive MassSave heat pump rebates are not eligible for this rebate.

• New heat pump system: $1,000 (one-thousand dollars) per ton up to a maximum of $3,000 (three-thousand dollars).
• Replacement heat pump system: $200 (two-hundred dollars) per ton up to $2,000 (two-thousand dollars).
• Weatherization is required in conjunction with heat pump installation for the customer to be eligible for the heat pump rebate.
  • 50% of the cost up to $3,500 (three thousand, five-hundred dollars)
  • Working with an approved Abode home performance contractor
  • If a customer has existing weatherization, existing weatherization can be demonstrated by satisfying at least one of the following requirements: (A) Home was built during or after 2010, or (B) Weatherization recommendations made during or after 2013 have been completed.
• The contractor must ensure the sizing of heat pumps reflects the energy efficiency gained through weatherization.
• Block Manual J submission is strongly recommended.
• One partial home heat pump rebate per RMLD account every 10 years.
• Gas customers who receive MassSave heat pump rebates are not eligible for this rebate.

Note 1: Actual tons are calculated based on AHRI-rated cooling capacity divided by 12,000 BTUs. Rebate amount based on actual tons.

Note 2: Beginning January 1, 2026, the EPA ruling prohibits the installation of new HVAC systems with GWPs >700. All systems selected using the NEEP ccASHP Qualified Product List must be selected using the "All A2L" or other A2L refrigerant selection (e.g., R-454B, R-32) to align with the EPA's new transition rule.

1. Request your FREE Consultation with RMLD's Heat Pump and Weatherization Vendor: Abode Energy Management (Abode)
   1. Abode provides no-cost consultations to RMLD customers and contractors, providing guidance on working with contractors, reviewing and comparing quotes, and understanding how heat pumps and weatherization work.
   2. Email Abode's office, call 339-707-0918 or schedule your consultation online with Abode here: Abode Energy Management
2. Select an approved home performance contractor (HPC). See the list of approved HPCs here: Participating Contractor Listing
   1. Customers are required to work with an approved Participating Weatherization Contractor; working with a Participating Heat Pump Contractor is recommended.
3. To qualify for the heat pump and weatherization incentives, contractors MUST:
   1. Call RMLD at 781-942-6598 to obtain a Utility Authorization Number (UAN).
   2. Obtain a Town Electrical Permit.
4. Choose ONE of three RMLD Incentive options: Please review the requirements to confirm that your planned project meets all eligibility criteria.  
   1. Whole-Home Heat Pump Rebate
   2. Whole-Home Heat Pump Zero-Interest Loan
   3. Partial-Home Heat Pump Rebate
5. Submit Incentive Application via Abode: RMLD Incentive Application  
   
   1. After you have chosen which heat pump and weatherization quote or proposal you plan to move forward with, submit your Incentive Application for review and approval by Abode
   2. For Customers Applying for the Zero-Percent Interest Loan:
      1. RMLD will review and determine program eligibility before installation. Applications received after installation will NOT be eligible. If eligible, RMLD will send a letter to the Reading Cooperative Bank for review. Reading Cooperative Bank then determines loan/financing eligibility. If eligible, the customer will need to meet directly with a bank representative to apply for the loan. Please email the bank for more details or call 781-942-5000, ext. 407.
      2. Once the loan is approved, Reading Cooperative Bank issues a loan commitment letter. The loan must close within 60 days of the commitment letter date. Installation of the heat pump (and weatherization) must be completed, and the invoice must be submitted to RMLD within 60 days of the commitment letter date.
         
6. Weatherization (Must be installed in conjunction with a heat pump system to be eligible for the heat pump incentives)
   1. Complete Home Performance Contractor (HPC) Scoping Visit
   2. All approved HPCs use the same price book and scoping guidelines.
   3. Abode will approve the project before installation starts
   4. Install weatherization
   5. After installation, HPC completes a post-installation quality assurance (QA) form for the weatherization installation from Abode.
7. Install Heat Pump System
   1. The system must be connected by a licensed electrician.
   2. The contractor must ensure that the Town Wiring Inspection is completed and reported to RMLD.
      1. Reading Wire Inspector
      2. North Reading Wire Inspector
      3. Wilmington Wire Inspector
      4. Lynnfield Wire Inspector
8. Quality Assurance Requirements
   1. After installation, the contractor must complete the Install Quality Assurance Form for final review and approval by Abode. The following must be uploaded to the post-install QA Form for final review and approval by Abode:
      1. Final Invoice(s), which must include the following information: Date, Vendor, Customer Name and Address, Equipment Installed including Model #, Total Price Paid, Zero Balance or Paid in Full
      2. Photos for Each Installed Unit:
         1. Exterior Photo(s): Close-up photo of model number nameplate on the installed outdoor system(s); Photo (less than three feet away) of exterior line set(s) connected to outdoor unit(s) showing insulated line set; Distant photo of installed outdoor system(s) showing entire line set and outdoor unit
         2. Interior Photo(s): Picture of indoor air handler(s) if installed
      3. AHRI Certification(s)
      4. Product Specification Sheet(s)
9. Abode sends completed paperwork to RMLD for processing, review, and approval
   1. To check on the status of your rebate application, please email our office
   2. Once approved rebate check is sent out for mailing during the next payment period

How to Apply: Abode Incentive Application

Application Deadline: Application must be received within 180 days of final wiring inspection.

Payment Method: This rebate will be issued as a check within 2-4 weeks once processed by RMLD specialist. The loan will be issued by the bank after all required documentation has been approval.

• March 5, 2025 - Required Weatherization. Loan Program. Updated rebate limitation from 2 rebates per account (meter) every 12 years to 1 rebate per account (meter) every 10 years.
• June 22, 2023 - Added information on Optional Weatherization Add-On rebate. Updated eligibility to include ground source heat pumps.
• January 1, 2023 - Updated QA process, so that the pre-approval form is streamlined and optional. Updated efficiency requirements for eligible equipment.
• September 29, 2022 - Updated rebate limitations from one to two rebates per account (meter) every 12 years.
• February 25, 2022 - Updated eligible customer class and rebate limitations to reflect that gas customers who are eligible to participate in MassSave heat pump rebates are not eligible for this rebate. Updated rebate limitations from "location" to "account (meter)" for clarification.
• January 20, 2022 - Updated how to apply, directing customers to send completed rebate applications to Abode.
• May 11, 2021 - Updated application deadline language from "submitted" to "received."
• May 5, 2021 - Clarified details regarding required photos/documentation and the final invoice. Clarified efficiency requirements. Updated maximum incentive to $6,000; removed 50% cap. Updated rebate limitations to one rebate per location every 12 years rather than one rebate per building zone every 12 years. Removed the integrated controls add-on rebate.
• January 29, 2021 - Changed nominal capacity to cooling capacity, where cooling capacity is clearly stated on AHRI spec sheets.
• October 1, 2020 - Pre-approval and post-installation processes through Abode Energy Management were added.
• April 27, 2020 - Incentive amounts updated.
• March 5, 2020 - ASHPs removed from the Appliance rebate into a stand-alone program; incentive amounts updated.