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The changes to Mass Save in 2025 will introduce a new rebate structures and financing options to the ratepayer funded program, reducing some rebates available and potentially costing homeowners more out of pocket for installing energy efficient home improvements. We spoke with with Max Veggeberg, the CEO and Founder of Tetra, an AI-enabled home services company that helps homeowners adopt energy efficient heating and cooling solutions. Max has over a decade working in home services and energy, previously at Homeworks Energy.
Q: What do homeowners need to know about the 2025 Mass Save updates and how changes to rebates and loan terms will affect their energy-efficient upgrades?
Veggeberg: The 2025 Mass Save program is introducing significant changes that will affect how homeowners plan energy-efficient upgrades. Next year, heat pump rebates will be based on the system's tonnage, offering $3,000 per ton, with a maximum of $10,000 per home. This change could lower the rebate amounts for smaller homes. The HEAT Loan program, a zero-interest financing option as part of Mass Save, will also have shorter repayment terms, will also have shorter repayment terms, resulting in as much as 130% higher monthly payments for many homeowners. These updates, combined with declining rebate amounts after 2025, make it essential for homeowners to act now to lock in better rates and financing options.
Q: How will the new rebate structure (based on tonnages) impact homeowners with smaller homes and their eligibility for incentives?
Veggeberg: The shift to a per-ton rebate system in 2025 means its very likely smaller homes under 1,200 square feet may not benefit as much as larger homes. With less tonnage required for heating and cooling, smaller properties might receive less than the $10,000 maximum rebate.
Q: What can homeowners expect from shorter heat loan terms? Could the changes lead to higher monthly payments?
Veggeberg: Starting in 2025, the HEAT Loan program will reduce repayment terms for many households, with higher-income earners limited to three years and middle-income households restricted to five years. While the 0% interest rate remains, shorter terms will lead to significantly higher monthly payments. For example, a $99 monthly payment under a 7-year loan could increase to $139 with a 5-year term or $231 with a 3-year term, making affordability a greater challenge for many families.
Q: What happens to rebates after 2025?
Veggeberg: Mass Save rebates are scheduled to decline annually after 2025. For example, the rebate for whole-home air-source heat pumps will decrease to $2,700 per ton in 2026 and $2,500 per ton in 2027. This steady decline makes 2025 the final year to take advantage of the program’s highest incentives, so homeowners looking to get the most savings should act quickly.
Q: In your view, what should homeowners do now to maximize savings and make the most of these opportunities?
Veggeberg: To take full advantage of Mass Save rebates and financing options, homeowners should act before the 2025 changes take effect. Scheduling a consultation now allows them to secure the higher 2024 rebate rates and benefit from the current HEAT Loan terms with extended repayment periods. Upgrading to energy-efficient systems like heat pumps this year ensures access to better incentives and financing, reducing long-term energy costs and avoiding the financial impact of reduced rebates and shorter loan terms.
