Heat pump or a new oil boiler: what each costs you
Only one of them gets a Mass Save rebate. Here is the part of the comparison that is public, and how to get the part that is not.
- Checked: November 3, 2026
The rebate gap
Mass Save pays $2,650 per ton, up to $8,500, for a whole-home heat pump installed in 2026. The same program says rebates, incentives and financing for new oil, gas and propane equipment are no longer available, except for income-eligible households. So a quote for a new oil boiler is the full price, and a heat pump quote has the rebate taken off.
Mass Save's own example: an average whole-home installation of $22,000, less a $8,500 rebate, leaves $13,500. That average is from 2022 installs, so use it as a rough anchor and not as a quote. On January 1, 2027 the cap falls to $7,500; see the 2027 change.
What the oil boiler comparison leaves out
- The tank. A new oil boiler keeps the tank, the deliveries and the chimney or vent. A heat pump removes them, and the fuel source is disconnected or removes the fuel source where a rebate requires it.
- Cooling. A heat pump heats and cools. An oil boiler does not cool, so a home that wants air conditioning pays for a second system.
- The panel. A heat pump adds electrical load. An electrician checks service size and panel space, and some homes need an upgrade. See panel upgrades.
- Running cost. Fuel deliveries stop and the electric bill rises. The size of the swing depends on your house and your rates, so it needs a real estimate.
Where oil is most common
Share of occupied homes with oil as the main heating fuel, for the towns where it is highest on this site.
| Town | Homes on oil | Share |
|---|---|---|
| Reading | 4,088 | 42% |
| Wakefield | 3,752 | 33% |
| Danvers | 3,504 | 32% |
| Lexington | 3,868 | 31% |
| Stoneham | 2,810 | 29% |
How to compare for your house
Send a photo of the boiler and one of your panel. We can quote the heat pump and, if you want to compare, a like-for-like oil quote. Then put the heat pump price in the calculator to see what the rebate takes off.
Common questions
Is a heat pump cheaper than a new oil boiler?
We do not publish a price for either, because a price depends on your house. What is public is that Mass Save pays a rebate for a heat pump and says rebates for new oil, gas and propane equipment are no longer available, except for income-eligible households. Get a quote for both and subtract the rebate from the heat pump.
What does it cost to run each one?
That depends on your oil price, your electric rate, how well the house holds heat and the size of the system. We can estimate it for your house. Eligible customers may qualify for a Seasonal Heat Pump Rate from November through April.
Can I keep the oil boiler for the coldest days?
Yes, as a partial-home project. The rebate is smaller, and Mass Save requires an integrated control on zones where oil, propane or gas stay in use.
Have an oil boiler?
Send a photo of it and one of your panel. We look at them and get back to you.
Send photos