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Oil to heat pump

Leave the oil tank behind

Oil and propane homes are the clearest fit for Mass Save heat pump rebates. Here is what changes, and what to send us.

  • Checked: November 3, 2026

Send photos, get a price

An old oil boiler and tank in a brick basement beside an electrical panel

What changes in the house

  1. 1

    The heat source

    Outdoor units and indoor heads or air handlers replace the boiler or furnace. We size the system to the home.

  2. 2

    The tank

    The fuel source is removed or disconnected the fuel source where a rebate requires it.

  3. 3

    The electrical service

    A heat pump adds load. We or an electrician check your panel and service.

  4. 4

    The bill

    Electricity use goes up and fuel deliveries stop. Eligible customers may qualify for a Seasonal Heat Pump Rate from November through April.

Mass Save's whole-home heat pump rebate is $2,650 per ton through Dec 31, 2026, then $2,350 per ton from Jan 1, 2027. Source: Mass Save, air source heat pumps, checked November 6, 2026.

What Mass Save pays

Whole-home heat pumps: $2,650 per ton up to $8,500 in 2026, and $2,350 per ton up to $7,500 from January 1, 2027. Mass Save's own example: on a $22,000 average installation, an $8,500 rebate leaves $13,500. The average comes from Mass Save program data for whole-home installs finished in 2022. Use the calculator with your own quote.

Mass Save also says rebates and financing for new gas, oil and propane equipment are no longer available, except for income-eligible households.

What changes in the house

  • The heat source. Outdoor units and indoor heads or air handlers replace the boiler or furnace. We size the system to the home.
  • The tank. The fuel source is removed or disconnected the fuel source where a rebate requires it.
  • The electrical service. A heat pump adds load. We or an electrician check your panel and service. Panel upgrades
  • The bill. Electricity use goes up and fuel deliveries stop. Eligible customers may qualify for a Seasonal Heat Pump Rate from November through April.

How many homes heat with oil, by town

Share of occupied homes whose main heating fuel is fuel oil or kerosene.

TownHomes on oilShare
Reading4,08842%
Wakefield3,75233%
Danvers3,50432%
Lexington3,86831%
Stoneham2,81029%
Woburn4,68629%
Beverly4,28425%
Peabody5,37724%
Winchester2,02124%
Melrose2,48720%
Waltham4,83019%
Arlington3,64618%
Belmont1,92118%
Lynn6,34817%
Salem3,38417%
Medford3,54315%
Watertown2,06813%
Everett2,09812%
Revere2,76912%
Malden2,55310%
Boston19,0657%
Somerville2,2026%
Cambridge1,7864%

U.S. Census Bureau, American Community Survey 2020-2024 5-year estimates, table B25040.

Comparing prices? Read heat pump or a new oil boiler and the 2027 rebate change.

Common questions

What happens to my oil tank?

Mass Save requires the old fuel source to be removed or disconnected and documented on the invoice when a partial-home rebate fully displaces a heating zone. For a whole-home rebate the heat pump is the sole heating and cooling source. Ask us who handles the tank.

Does my panel need to change?

Sometimes. An electrician checks the service size and panel space. See the panel upgrade page, and send a photo of your panel with the request.

Do I keep my boiler as backup?

You can, 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 the boiler and one of your panel. We look at them and get back to you.

Send photos
Call (781) 210-8400Rebate