Up to $8,500 for a whole-home heat pump

Home Rebates in Salem, Massachusetts

Salem is a city of two- and three-family houses: about 38% of its homes sit in buildings of two to four units, and half the households rent. That shapes which Mass Save offers matter most here.

On this page
  1. What is open for Salem homes in 2026
  2. Two- to four-family buildings
  3. Renters are half the city
  4. How Salem heats
  5. Older homes
  6. Neighbours on municipal light
  7. Heat pump paperwork to watch
  8. How to claim in Salem
  9. Common questions
  10. What to do next

What is open for Salem homes in 2026

Salem's electricity comes from National Grid, so it is covered by Mass Save. Each card below names the program page we read on October 3, 2026. The amounts are statewide, but the right starting point depends on how your building is heated.

Open

Whole-home heat pump

Up to $8,500

$2,650 per ton for a whole-home air-source system, up to $8,500, for homes replacing oil, propane or electric resistance heat, or natural gas heat through a gas sponsor. Installed by a Mass Save heat pump installer in 2026.

Open

Income-qualified heat pump

No cost, or up to $16,000

Enhanced rebates for moderate-income and income-eligible households. This is not the standard amount.

Income-qualified
Open

Home energy assessment

Free

The no-cost assessment unlocks the weatherization offers and tells you what each building needs.

Open

Decarbonization consultation

Free

A no-cost virtual consultation with a Mass Save Decarbonization Specialist, plus a Heating Comparison Calculator that compares the annual cost of different systems. Useful if you do not know where to start.

Open

Insulation and air sealing

75% to 100% off

75% is the standard offer. 100% generally applies to income-qualified households or certain buildings with one to four units.

Income-qualified
Open

Heat pump water heater

$750

Instant rebate when replacing an electric, oil, propane or gas water heater.

Open

Induction cooktop

$500

For switching from a gas or propane cooktop. An ENERGY STAR clothes dryer earns $50.

Open

Solar (SMART)

$0.03 per kWh

A flat payment per kWh for systems up to 25 kW; $0.06 for low-income customers. The state tax credit is 15% of cost, up to $1,000.

Open

Battery

About $1,375 a year

A 5 kW battery enrolled in ConnectedSolutions earns about that over summer events, and the HEAT Loan can finance it at 0%, up to $25,000.

Open

Home EV charger wiring

Up to $700

National Grid pays up to $700 for a 240-volt circuit, or $1,400 for a charger shared in a two- to four-unit building. Off-peak charging enrollment is required.

Two- to four-family buildings

The 2020-2024 American Community Survey counts 21,492 housing units in Salem. About 38% are in buildings of two to four units, and only about 24% are detached single-family houses. That matters for three Mass Save rules: the 100% weatherization offer can reach certain one- to four-unit buildings, the shared-charger EV amount is $1,400 for two to four units, and a landlord can be the one who applies. If you own a three-decker and live in one unit, ask the assessor how the whole building will be treated.

Renters are half the city

About 50% of Salem households rent. The structural rebates, such as heat pumps and insulation, go to whoever owns the building, so a tenant's practical options are the free assessment request (ask the landlord to book it), appliance rebates for anything the tenant buys, and the income-qualified offers if the household qualifies. A tenant who pays the electric bill should still check whether their income fits the enhanced tier.

How Salem heats

The ACS estimates 55% of occupied Salem homes heat with utility gas, 25% with electricity and about 17% with fuel oil. The heat pump rebate is written around what you replace. Oil, propane and electric resistance homes qualify through the electric sponsor, and gas homes through the gas sponsor, so a gas-heated three-decker and an oil-heated single-family house in the same street may have different paperwork. Ask the contractor which sponsor applies to your address.

Older homes

About 76% of Salem's homes were built before 1980, and about 51% before 1940. Homes of that age often have the most to gain from air sealing and insulation, which is why the assessment comes first. The 75% to 100% weatherization offer is usually the largest saving for them, before any heat pump is sized.

Neighbours on municipal light

Salem is a National Grid town, so it is in Mass Save's electric programs. Several nearby towns, including Peabody, Marblehead and Danvers, are on municipal light plants and use their own rebates instead. If you are comparing offers with a friend in one of those towns, expect the electric side to differ.

Heat pump paperwork to watch

Since January 1, 2026 Mass Save has removed heat pumps with a high-warming refrigerant, including R-410A, from its qualified list. Ask which refrigerant is in the unit before you sign, and make sure the installer is on the Mass Save list.

How to claim in Salem

  1. If you are not sure where to start, book Mass Save's no-cost virtual consultation with a Decarbonization Specialist or try its Heating Comparison Calculator.
  2. Book the free Mass Save home energy assessment for your building.
  3. Ask the assessor how a two- to four-unit building is treated, and whether your household may qualify for enhanced offers.
  4. Get quotes from a Mass Save heat pump installer and ask which refrigerant the unit uses.
  5. Pick the sponsor route that matches the fuel you are replacing.
  6. Keep invoices and model numbers for the rebate paperwork.

Common questions

Does Salem get Mass Save rebates?

Yes. Salem is a National Grid electric town, so it is in the Mass Save programs. Some neighbouring towns on municipal light plants are not.

Can the owner of a three-decker get 100% off insulation?

Mass Save says 100% generally applies to income-qualified households or certain buildings with one to four units. The assessor decides which applies to your building.

How much is the heat pump rebate in Salem?

Up to $8,500 for a whole-home system under the standard offer, and no cost or up to $16,000 for income-qualified households.

Can a Salem tenant claim a heat pump rebate?

The owner of the building is usually the one who applies. A tenant can ask the landlord to book an assessment.

Is there a federal tax credit in 2026?

No. The federal home energy credits ended for installs after December 31, 2025.

What to do next

See Lynn heat pump rebates, Massachusetts EV charger rebates and the Massachusetts rebate calculator.

By Sam Menard. Sources, last read October 10, 2026: MassCEC: air-source heat pumps, MassCEC: weatherization, Mass.gov: SMART 3.0 program details, Mass.gov: municipally owned electric companies, US Census Bureau ACS 5-year 2020-2024 (B25040 heating fuel), Mass Save: decarbonization consultations. All Salem rebates → Every Mass Save rebate →

Statewide answer: see Massachusetts home battery rebates and incentives, with what is open, what has closed and the dates to watch.

Statewide answer: see Massachusetts home EV charger rebates, with what is open, what has closed and the dates to watch.

Statewide answer: see Massachusetts HRV and ERV rebates, with what is open, what has closed and the dates to watch.

Statewide answer: see Massachusetts appliance rebates, with what is open, what has closed and the dates to watch.

Statewide answer: see Massachusetts heating bill help: LIHEAP dates and income limits, with what is open, what has closed and the dates to watch.

See your own roof: try the free Solar Roof Check. Type your address to see how many panels fit and which verified solar rebates apply.

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