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Massachusetts Alternative Energy Credits (AECs)

Alternative Energy Credits (AECs) are an incentive that qualifying air source heat pumps can receive.  The state utility companies are mandated to buy AECs every quarter to off-set the pollution that is created from their current electricity generation.  These AECs are sold at auctions every 3 months.

Home Energy Raters helps facilitate the processing of qualifying AEC credits through a third party, Green Harbor Energy. Generally, it takes 3-6 months for you to receive this incentive and the incentive check is mailed directly to you.

These credits are separate from the Mass Save incentives you may be eligible for and are different from the Whole-Home Air Source Heat Pump Rebates currently being offered through Mass Save.



Under the small renewable thermal technologies program of the Massachusetts APS, the Department of Energy Resources (DOER) has established the following requirements for an ASHP system to qualify:

  • have an operational date of January 1, 2015, or later
  • have an output capacity of less than 134,000 Btu per hour
  • be on the DOER’s eligibility list of models or meet efficiency standards
  • in the case of replacing an existing heating system without a back-up system, the ASHP must supply 100% of the building’s heat
  • in the case of replacing an existing heating system with a back-up system, the ASHP must supply 90% of the building’s heat, distribute heat to all space-conditioned areas, and be at least 50% of the capacity of the remaining back-up system.
  • in the case of new construction, the ASHP must supply 100% of the building’s total annual heating load (no supplemental non-renewable heat sources allowed)

The owner of the ASHP system receives 10 years of AECs upfront in accordance with DOER formulas. Systems may also be eligible for multipliers of credits based on a set of criteria regarding the specific building that the ASHP system is being installed.


If you are interested in applying for AECs for your air source heat pumps, please call our office at 508-833-3100.