Financing & Incentives for Massachusetts Homeowners | HEAT Loan + IRA 25C + IRA 25D

The Three Programs

Massachusetts Financing & Incentives Side-by-Side

Massachusetts offers three distinct programs that fund home electrification. Each operates through a different channel — utility loan, federal income tax credit on Part II of Form 5695, federal income tax credit on Part I of Form 5695 — and each covers different scopes of work. Here's what they are, what they cover, and how to apply.

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Mass Save HEAT Loan (0% APR up to $25,000)

Channel: Massachusetts utility loans (Eversource, National Grid, Unitil) — 7-year term, 0% APR, no home equity required.

Covers: Heat pump installations, electrical panel upgrades done as part of an electrification project, weatherization, insulation, qualifying water heaters.

How much you save: Borrowing $25,000 at 0% instead of a typical 9% APR home-equity loan or 7% personal loan saves roughly $8,000–$10,000 in interest over the loan term.

What Zolotas handles: Coordinates with your heat pump installer (the lead applicant) and signs off on the electrical work scope so the loan paperwork clears.

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IRA Section 25C Energy Efficiency Credit (30% up to $2,000/year)

Channel: Federal income tax credit — you file IRS Form 5695 Part II with your annual return.

Covers: Heat pumps and heat pump water heaters, electrical panel upgrades done to enable electrification, insulation, energy-efficient windows and exterior doors.

How much you save: 30% of qualifying electrical and weatherization costs, capped at $2,000 per year. A $3,000 panel upgrade done alongside a heat pump yields a $900 25C credit. The credit is non-refundable — it can reduce tax owed to zero but won't generate a refund — and the annual cap resets each January.

What Zolotas handles: Provides the eligible-cost documentation and receipts for the panel upgrade portion of your Form 5695.

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IRA Section 25D Residential Clean Energy Credit (30%, No Annual Cap)

Channel: Federal income tax credit — you file IRS Form 5695 Part I with your annual return.

Covers: Solar PV systems, battery storage (3 kWh minimum), geothermal heat pumps, solar water heaters, fuel cell equipment.

How much you save: 30% of qualifying project cost with no annual dollar limit. A typical $20,000 residential solar install yields a $6,000 federal credit; unused amounts carry forward to future tax years (a key advantage over 25C). Active through December 31, 2034.

What Zolotas handles: Documents the electrical work that supports the solar or battery project; the solar installer files 25D for the rest.

Program	What It Covers	Maximum Benefit	Application / When to Claim
Mass Save HEAT Loan	Heat pump install, panel upgrade, weatherization	Up to $25,000 at 0% APR over 7 years	Lead HVAC contractor applies at install
IRA Section 25C	Heat pumps, panel upgrade, insulation, windows	30%, up to $2,000 per year	Homeowner files Form 5695 Part II in April
IRA Section 25D	Solar PV, battery storage (3+ kWh), geothermal HP	30% with no cap (carry-forward allowed)	Homeowner files Form 5695 Part I in April

Mass Save 0% Financing

Massachusetts HEAT Loan: 0% APR up to $25,000 for 7 Years

The Mass Save HEAT Loan is the most homeowner-friendly financing program in Massachusetts. You borrow from your utility (Eversource, National Grid, or Unitil) at literally 0% APR, repay over 7 years, and use the funds for heat pump installation, electrical panel upgrades done as part of an electrification project, weatherization, insulation, and qualifying water-heating equipment. There is no home equity requirement, no origination fees deducted from the loan, and credit underwriting is generally lighter than a HELOC or unsecured personal loan.

Who Qualifies

Confirmed Mass Save customer of Eversource, National Grid, or Unitil. All Essex County towns are covered by one of these three utilities — we'll tell you which during the free estimate.

Completed or scheduled no-cost Home Energy Assessment. Mass Save arranges the energy auditor visit, drafts a report on heat loss and electrification opportunities, and pre-qualifies your project for rebates and the HEAT Loan. Scheduling the assessment starts the loan process.

Homeowner or landlord-approved tenant. The account holder applies; tenants need landlord approval documented in the loan file.

Project in the qualifying scope. Heat pump installations and panel upgrades done as part of an electrification project are the most common. Standalone panel swaps (with no downstream electrification) typically do not qualify on their own — Zolotas Electric will tell you during the estimate.

Credit check note: The Mass Save HEAT Loan uses a utility-managed credit check that is generally lighter than a HELOC. Homeowners who have been turned down for bank personal loans are often approved for the HEAT Loan.

Application Steps

Confirm utility and Mass Save eligibility. Identify whether you are an Eversource, National Grid, or Unitil customer. All Essex County towns are covered by one of the three.
Schedule the no-cost Mass Save Home Energy Assessment. The energy auditor visits, drafts a heat-loss report, and pre-qualifies the electrification project. This kicks off loan eligibility.
Get written quotes from licensed contractors. Quote from heat pump installer (HVAC) AND electrical contractor (Zolotas Electric) for any panel upgrade or dedicated circuit work.
HVAC contractor signs the loan paperwork as lead applicant. Zolotas Electric signs off on the electrical scope so the loan file goes in clean. The HVAC contractor files with Mass Save on your behalf.
Loan disbursed at install — repay monthly at 0% APR over 7 years. Funds typically release to the contractors upon equipment commissioning. You begin monthly payments the following month.

IRA Federal Tax Credit

IRA Section 25C: 30% Back on Heat Pumps, Panel Upgrades, Insulation
(Up to $2,000/Year)

The IRA Section 25C credit (officially the Energy Efficient Home Improvement Credit) is the federal income tax credit that returns 30% of qualified electrification costs — capped at $2,000 per year per homeowner. Zolotas Electric handles the electrical documentation so the panel upgrade and circuit costs in your project qualify under Section 25C. You, the homeowner, file Form 5695 the following April with your federal return.

Who Qualifies — and What

Homeowner with federal tax liability. The credit is non-refundable — it reduces your federal tax bill to zero but does not generate a refund check. If your tax owed after withholding is less than the credit amount, the unused portion is lost for that year (the $2,000 cap, however, resets each January 1).

What qualifies under Section 25C: heat pumps and heat pump water heaters, electrical panel upgrades required for electrification, insulation, energy-efficient windows, and exterior doors. The credit is filed under Part II of Form 5695.

What does not qualify under 25C: Solar PV, battery storage, and geothermal heat pumps — those fall under Section 25D. Service repairs and routine maintenance are not eligible.

Electrification requirement: A panel upgrade qualifies under 25C only if it's being done to enable electrification (heat pump install, EV charger, etc.). A panel replacement with no downstream electrification project typically does not qualify. Zolotas Electric confirms during the estimate.

Application Steps

Confirm the project qualifies under 25C categories. Heat pump, heat pump water heater, panel upgrade for electrification, insulation, or qualifying windows/doors. Solar / battery / geothermal go under 25D instead.
Complete the project and pay the licensed contractor. Zolotas Electric (or your HVAC / weatherization contractor) invoices and you pay in full. Keep the receipt and any contract document.
Receive supporting documentation from contractors. Zolotas Electric provides a statement showing eligible-cost documentation for the panel upgrade portion of the Form 5695 work sheet.
Gather receipts documenting the cost basis. Crucially, Mass Save rebates do NOT reduce the cost basis used for the 25C claim — you can stack them on the same equipment. Same applies to any HEAT Loan proceeds.
File Form 5695 with your federal return the following April. Complete Part II (Section 25C), carry the credit amount to Schedule 3 of your 1040. The $2,000 annual cap resets each January.

Crucial stacking detail: Mass Save instant rebates, HEAT Loan proceeds, and Mass Save + Mitsubishi heat pump rebates do not reduce your qualified cost basis for the 25C claim. You can stack all of them on the same equipment on the same year's return.

IRA Federal Tax Credit

IRA Section 25D: 30% Back on Solar PV, Battery Storage, Geothermal
(No Annual Cap, Active through 2034)

The IRA Section 25D credit (officially the Residential Clean Energy Credit) returns 30% of qualified solar PV, battery storage, and geothermal heat pump costs with no annual dollar cap. Unlike 25C, unused credit amounts carry forward to future tax years — making it the most generous federal incentive for larger solar or battery projects. Homeowners file Form 5695 Part I themselves; Zolotas Electric documents the electrical work for the system.

Who Qualifies — and What

Homeowner with federal tax liability. The credit is non-refundable but, unlike 25C, unused amounts carry forward to future tax years. This means homeowners with a large solar project and modest tax liability still recover the full credit — it just takes two or more tax years.

What qualifies under Section 25D: Solar PV systems, solar water heaters, geothermal heat pumps, battery storage (3 kWh+ capacity), and certain fuel cell equipment. Credit is filed under Part I of Form 5695.

Expiration: The Section 25D credit is currently active through December 31, 2034. Starting in 2035, this credit expires unless Congress extends it. The 30% rate is set through 2032; for projects placed in service 2033–2034 the rate steps down to 26%.

Carry-forward advantage: 25D is the more generous of the two IRA credits for big-ticket clean-energy projects. A $30,000 solar install yields a $9,000 25D credit — if you can't absorb it all in one year's tax bill, the unused portion rolls forward. This is a meaningful contrast with 25C's $2,000 annual cap with no carry-forward.

Application Steps

Confirm the project qualifies under 25D categories. Solar PV, battery storage (3 kWh+), geothermal heat pump, solar water heater, or qualifying fuel cell equipment. Heat pumps (air-source) and panel upgrades go under 25C, NOT 25D.
Complete installation and pay the licensed contractor. Solar installer handles the PV install and inverter. Zolotas Electric handles the AC disconnect, PV meter base, and battery interconnection wiring and signs off for the electrical scope.
Receive Form 5695 supporting docs from solar / battery installer. The installer provides the eligible-cost statement. Zolotas Electric provides supplemental documentation for the electrical work scope.
File Form 5695 with your federal return the following April. Complete Part I (Section 25D), enter the full project cost basis, compute the 30% credit, carry to Schedule 3 of your 1040.
Apply carry-forward for any amount exceeding your tax liability. No annual cap, so the unused portion rolls forward to the next year's Form 5695 until fully absorbed (or until the credit's 2034 expiration, whichever comes first).

💰 Massachusetts Energy Programs

Mass Save Coordinates Up to $25,000 in Homeowner Funding

Mass Save — the Massachusetts energy efficiency program administered by your gas and electric utility — is the umbrella for most state-level electrification incentives, including the HEAT Loan. Here's what it offers Essex County homeowners and how the flow works:

HEAT Loan — 0% APR up to $25,000 for eligible heat pump, weatherization, and panel upgrade projects. The HVAC or weatherization contractor is the lead applicant; Zolotas Electric signs off on the electrical scope.
Heat pump instant rebates up to $10,000 for ducted ASHP and up to $2,750 per zone for ductless mini-splits (separate from the HEAT Loan — credited at install).
No-cost Home Energy Assessment — a Mass Save energy auditor visits your home, drafts a heat-loss report and electrification roadmap, and pre-qualifies your project for both the HEAT Loan and the instant rebate.
$2,500 electrical panel instant rebate for qualifying customers whose panel upgrade is bundled with a heat pump or EV charger install (separate from the HEAT Loan).
Insulation & air-sealing rebates — separate Mass Save funding for weatherization, often bundled with a heat pump project to maximize overall benefit.
All Mass Save instant rebates are stackable with both the HEAT Loan and the federal IRA 25C / 25D credits — rebates do NOT reduce the cost basis used for the federal credit claim.

Zolotas Electric confirms the electrical side of every Mass Save project we touch — panel upgrades, dedicated circuits, disconnects — and provides the documentation Mass Save asks for. The HVAC installer files the main rebate; you'll see the credit appear on the invoice at install.

Maximum Stack

$25,000+

HEAT Loan principal
+ Mass Save instant rebates
+ IRA 25C / 25D federal tax credit

Typical Essex County households combining
all three programs on a heat pump +
panel upgrade save $15K–$20K+ total.

How the Three Work Together

Stacking HEAT Loan + IRA 25C + IRA 25D

The three programs cover different scopes and operate through different channels — they layer cleanly on a single electrification project. The recommended order minimizes your out-of-pocket at install and maximizes the federal credits you recover next April:

Step 1 — Heat Pump + Panel Upgrade Project

The HVAC installer applies the Mass Save rebate directly to the invoice. Zolotas Electric signs off on the electrical scope. Typical savings: $5,000–$10,000 off the invoice (instant, no tax paperwork).

Step 2 — HEAT Loan Covers the Remainder

For any balance left on the invoice after the instant rebate, the HEAT Loan finances it at 0% APR over 7 years. The HVAC installer is typically the lead applicant; Zolotas Electric signs off on the electrical scope so the loan file clears.

Step 3 — IRA 25C + 25D on Your Tax Return

The following April, file IRS Form 5695 with your federal return. Part I = Section 25D (solar / battery / geothermal, 30% no cap). Part II = Section 25C (heat pumps / panel upgrades / insulation, 30% up to $2,000/year). Mass Save rebates do NOT reduce your qualified cost basis.

$25K

Max 0% APR HEAT Loan
7-year term

$2K

IRA 25C Annual Cap
per homeowner

30%

IRA 25D Solar / Battery
no annual cap

Worked Example: Heat Pump + Panel Upgrade

Project cost: $28,000 heat pump + $3,500 panel upgrade = $31,500 total.

Step 1 — Mass Save instant rebate: − $9,000 (heat pump) = $22,500 net.

Step 2 — HEAT Loan: $22,500 financed at 0% APR over 7 years. No equity required.

Step 3 — IRA 25C next April: 30% × $3,500 panel upgrade = −$1,050 tax owed. Plus the heat pump portion under the same 25C cap.

Real net cost after step 3: roughly $12K–$15K instead of $31.5K — financed at 0% APR.

✅ HEAT Loan 0% APR on remainder — 7-year term, no equity required
✅ IRA 25C next April on Part II — 30% on heat pump / panel upgrade
✅ IRA 25D next April on Part I — 30% on solar / battery, no annual cap

Common Questions

Financing & Tax Credit FAQ for Massachusetts Homeowners

Licensed electricians with 40+ years of Mass Save electrification experience in Salem, Beverly, Peabody, Danvers, Marblehead, and all of Essex County.

What is the Mass Save HEAT Loan 0% APR financing and how do I apply? ✚

The Mass Save HEAT Loan is a 0% APR financing program offered through Massachusetts utilities (Eversource, National Grid, Unitil) for qualifying energy improvements. Eligible homeowners can borrow up to $25,000 over a 7-year term at 0% APR. The loan covers heat pump installations, electrical panel upgrades required for electrification, weatherization, insulation, and certain water-heating equipment. The application process: (1) confirm your utility, (2) schedule a no-cost Mass Save Home Energy Assessment, (3) get written quotes from a licensed HVAC contractor and electrical contractor, (4) the HVAC contractor signs the loan paperwork as lead applicant with Zolotas Electric signing off on the electrical scope, (5) receive disbursement at install and repay monthly over seven years at 0% APR.

What credit score do I need for the HEAT Loan? ✚

The Mass Save HEAT Loan uses a utility-managed credit check that is generally lighter than a HELOC or typical unsecured personal loan. There is no published minimum FICO threshold — Mass Save evaluates the file against utility underwriting criteria. Homeowners who have been turned down for a bank personal loan or HELOC are often approved for the HEAT Loan. The HVAC or weatherization contractor is typically the lead applicant, with Zolotas Electric signing off the electrical scope, so the file goes in as a coordinated project rather than a standalone personal loan application.

Can I use the HEAT Loan for an electrical panel upgrade by itself? ✚

The HEAT Loan is structured for energy improvements. A standalone electrical panel upgrade qualifies when the panel is being upgraded as part of an electrification project — for example, to enable a heat pump install, an EV charger, or whole-home electrification. A pure "swap a 100A panel for a 200A panel with no downstream electrification" typically does not qualify on its own. Zolotas Electric will tell you during the free estimate whether your panel upgrade qualifies for HEAT Loan financing or whether a separate Mass Save instant rebate package makes more sense.

What is the IRA Section 25C credit and how do I claim it on Form 5695? ✚

The IRA Section 25C credit (officially the Energy Efficient Home Improvement Credit) is a federal tax credit of 30% of qualified electrification costs, capped at $2,000 per year per homeowner. Qualifying work includes heat pumps, electrical panel upgrades done to enable electrification, insulation, and certain windows and doors. The credit is non-refundable — it can reduce your tax bill to zero but won't generate a refund — and the unused portion does not carry forward (the $2,000 annual cap resets each January 1). To claim, you complete the project, pay a licensed contractor, keep receipts documenting the cost basis, then file IRS Form 5695 Part II with your annual return. The credit amount is then carried to Schedule 3 of your 1040.

What is the IRA Section 25D credit and how is it different from 25C? ✚

The IRA Section 25D credit (officially the Residential Clean Energy Credit) is a federal tax credit of 30% of solar PV, battery storage (3 kWh+), geothermal heat pump, solar water heater, and certain fuel cell costs. Crucially, there is no annual dollar cap on the 25D credit — a $25,000 solar install yields a $7,500 federal credit. The credit is non-refundable but unused portions carry forward to future tax years. Most Mass Save customers claim 25D on the same Form 5695 used for 25C — Part I is for 25D, Part II is for 25C. The 25D credit is currently active through December 31, 2034.

Can I claim 25C and 25D on the same project? ✚

No — the 25C and 25D credits cover different scopes of work and you cannot double-claim on the same equipment. 25C applies to heat pumps, heat pump water heaters, panel upgrades, insulation, and windows/doors. 25D applies to solar PV, battery storage, geothermal heat pumps, solar water heaters, and fuel cell equipment. A homeowner with a heat pump + panel upgrade + solar PV installs and pays for all three under the same electrification project can claim 25C on the heat pump and panel upgrade (under the $2,000 annual cap), and 25D on the solar PV (no cap, carries forward), all on the same Form 5695 — but the same heat pump cannot be claimed under both. Zolotas Electric and your solar installer coordinate documentation for each credit line.

Are the Mass Save rebate and the IRA federal credit stackable? ✚

Yes — Mass Save instant rebates and IRA federal tax credits are stackable on the same project. Mass Save takes the rebate off the installer's invoice at installation (no tax paperwork for you). The IRA 25C or 25D credit then applies against your federal income tax on the same year's return. Critically, Mass Save rebates do not reduce the cost basis used for the IRA credit — you can stack Mass Save instant rebate + HEAT Loan 0% + IRA credit on the same equipment. This is why the recommended order is: Mass Save instant rebate on the invoice → HEAT Loan 0% covers any remaining balance → IRA 25C / 25D on Form 5695 the following April.

What Essex County towns qualify for Mass Save HEAT Loan financing? ✚

All Essex County towns in Massachusetts are covered by Mass Save, with the administering utility varying by geography. Most of Salem, Beverly, Marblehead, Danvers, Gloucester, Hamilton, Ipswich, Essex, Manchester-by-the-Sea, Wenham, Rockport, Topsfield, and Boxford are served by Eversource. Peabody, Lynn, Saugus, Lynnfield, Swampscott, Wakefield, Melrose, North Reading, and parts of the Merrimack Valley are served by National Grid. A sliver of the western county border (parts of Andover, North Andover, Methuen) is served by Unitil. Zolotas Electric serves all of Essex County and helps homeowners confirm their utility during the free estimate — this matters for filing HEAT Loan paperwork with the correct utility. The IRA 25C and 25D federal credits are national and apply to all Essex County homeowners regardless of which utility serves them.

Apply Across Your Projects

Apply Mass Save + IRA Financing Across Your Projects

Each trade page below lays out the typical cost range and what HEAT Loan / IRA 25C / IRA 25D financing applies to that specific project. Zolotas Electric installs the electrical infrastructure behind all five — panel upgrades, dedicated 240V circuits, and disconnects — so the paperwork clears cleanly and the federal credits qualify on Form 5695.

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Heat Pump Electrical Work

Heat pump outdoor units draw 20–60 amps at 240V. If your panel has headroom we add a dedicated circuit and disconnect in one day; if not, we coordinate the panel upgrade with your heat pump installer to bundle the Mass Save rebate + HEAT Loan. See heat pump electrician →

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Solar PV & Battery Storage

Solar inverters, AC disconnect, PV meter base, and battery interconnection equipment. 30% IRA 25D federal credit (no cap, with carry-forward) applies. Zolotas Electric handles the electrical interconnection; the solar installer handles the rest. See solar PV →

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Electrical Panel Upgrade

100A to 200A upgrade or hazard panel replacement (Federal Pacific / Zinsco). Up to $2,500 Mass Save instant rebate when bundled with a heat pump or EV charger project. Panel portion also qualifies for IRA 25C credit (30%, under the $2,000/year cap). See panel upgrade →

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EV Charger Installation

Level 2 charger (Tesla Wall Connector, ChargePoint, NEMA 14-50 outlet) on a dedicated 40–50A circuit. MOR-EV + federal 30C rebate applies; Leviton Mass Save coordination on the electrical work. See EV charger installation →

💰 HEAT Loan & IRA Credit Guide 💰 Full Rebates & Incentives Hub 🌡 Heat Pump Electrician ☀️ Solar PV Systems ⚡ Panel Upgrades 🔋 EV Charger Installation 💡 Lighting Services 💰 Heat Pump Cost & Savings Guide 🚗 EV Charger Cost & Rebates Guide

Massachusetts Financing & Incentives
for Home Electrification

Massachusetts Financing & Incentives Side-by-Side

Mass Save HEAT Loan (0% APR up to $25,000)

IRA Section 25C Energy Efficiency Credit (30% up to $2,000/year)

IRA Section 25D Residential Clean Energy Credit (30%, No Annual Cap)

How the Three Programs Compare

Massachusetts HEAT Loan: 0% APR up to $25,000 for 7 Years

Who Qualifies

Application Steps

IRA Section 25C: 30% Back on Heat Pumps, Panel Upgrades, Insulation
(Up to $2,000/Year)

Who Qualifies — and What

Application Steps

IRA Section 25D: 30% Back on Solar PV, Battery Storage, Geothermal
(No Annual Cap, Active through 2034)

Who Qualifies — and What

Application Steps

Mass Save Coordinates Up to $25,000 in Homeowner Funding

Stacking HEAT Loan + IRA 25C + IRA 25D

Step 1 — Heat Pump + Panel Upgrade Project

Step 2 — HEAT Loan Covers the Remainder

Step 3 — IRA 25C + 25D on Your Tax Return

Worked Example: Heat Pump + Panel Upgrade

All Essex County Towns Are Covered by Mass Save Financing & Federal IRA Credits

Financing & Tax Credit FAQ for Massachusetts Homeowners

Get Help With Massachusetts Financing & Tax Credits

Request received!

Apply Mass Save + IRA Financing Across Your Projects

Heat Pump Electrical Work

Solar PV & Battery Storage

Electrical Panel Upgrade

EV Charger Installation

Book a Free Financing & Tax Credit Consultation

Massachusetts Financing & Incentivesfor Home Electrification

Massachusetts Financing & Incentives Side-by-Side

Mass Save HEAT Loan (0% APR up to $25,000)

IRA Section 25C Energy Efficiency Credit (30% up to $2,000/year)

IRA Section 25D Residential Clean Energy Credit (30%, No Annual Cap)

How the Three Programs Compare

Massachusetts HEAT Loan: 0% APR up to $25,000 for 7 Years

Who Qualifies

Application Steps

IRA Section 25C: 30% Back on Heat Pumps, Panel Upgrades, Insulation (Up to $2,000/Year)

Who Qualifies — and What

Application Steps

IRA Section 25D: 30% Back on Solar PV, Battery Storage, Geothermal (No Annual Cap, Active through 2034)

Who Qualifies — and What

Application Steps

Mass Save Coordinates Up to $25,000 in Homeowner Funding

Stacking HEAT Loan + IRA 25C + IRA 25D

Step 1 — Heat Pump + Panel Upgrade Project

Step 2 — HEAT Loan Covers the Remainder

Step 3 — IRA 25C + 25D on Your Tax Return

Worked Example: Heat Pump + Panel Upgrade

All Essex County Towns Are Covered by Mass Save Financing & Federal IRA Credits

Financing & Tax Credit FAQ for Massachusetts Homeowners

Get Help With Massachusetts Financing & Tax Credits

Request received!

Apply Mass Save + IRA Financing Across Your Projects

Heat Pump Electrical Work

Solar PV & Battery Storage

Electrical Panel Upgrade

EV Charger Installation

Book a Free Financing & Tax Credit Consultation

Massachusetts Financing & Incentives
for Home Electrification

IRA Section 25C: 30% Back on Heat Pumps, Panel Upgrades, Insulation
(Up to $2,000/Year)

IRA Section 25D: 30% Back on Solar PV, Battery Storage, Geothermal
(No Annual Cap, Active through 2034)