2022 Whole-home heat pump rebate (Boston, Westborough: condo, loan, how much)

[Louisville Slugger]

So I added two mini splits to my condo in the last four years:

https://www.city-data.com/forum/mass...t-install.html

I love them and they're the best improvement I have made. So I reached out to the contractor who did my previous installs and asked about a quote to add another split to my last bedroom which is around 11' x 11'. My other bedroom has a 9,000 BTU unit in there so since they are the same size another 9,000 BTU unit should be enough. I was able to get all the rebates even after two separate installs. So even though they happened during different years my contractor was still able to get me all the rebates each time.

My contractor comes back and says I wouldn't have to pay a dime due to the $10K whole home rebate.

Now, I know rebates change all the time and I hadn't looked into them in quite a while. I was still a bit confused because I would be only doing one room. By adding a mini split to this last bedroom this would make it so that I would be 100% reliant on them to heat and cool my space. I am still using some electric resistance heating in combination with my mini splits at this point.

I looked at the rebates online:

https://www.masssave.com/-/media/Fil...ation-Form.pdf

https://www.masssave.com/en/saving/r...rce-heat-pumps

My contractor assures me that I will qualify. I am not quite sure. I had a Home Energy Assessment done recently as a requirement for the rebate. The guys who came said I will most likely be denied the whole home rebate if only doing one room. The guy even called his manager and he agreed as well. Since I did the other rooms over the years it's not going to be the entire house at once.

I am thinking about contacting MassSave directly to see if they could reassure me. Basically I would explain my situation and see if there is a chance I'll get the whole home rebate. I am thinking I'll only be eligible for a partial rebate which is $1,250 per ton. The odd thing is my contractor quoted me almost $10K for that tiny room which I know for a fact won't cost that much. I didn't even spend that much on the other two splits combined. I know costs have gone up due to inflation, but that seems like a lot.

What I am afraid of is signing his proposal, him doing the work, the rebate getting denied, and me getting stuck with a huge bill. The contractor gets his money either way through MassSave or the customer. He is a very nice guy and does quality work.

I guess I could always shop around. The install would be very simple. All the outdoor electrical could be run through the existing conduit from my previous installs and the line set would be a really short run as well.

Thoughts?

[MikePRU]

Interesting! I was not aware of that rebate. Thanks!

Maybe a conversation is in order with your contractor? Perhaps, he inflated the price in order to take advantage of the rebate and would be willing to accept a lower fee if you don't qualify for the rebate. He probably would never put that in the contract or in writing though because that could be construed as fraud.

[Louisville Slugger]

Yeah, so far all of our interaction has been through e-mail. He's not telling me what happens if the rebate is denied. I'd assume he would come after me for the money. Either way the contractor knows he'll get his money either from MassSave or myself. For me it's either the rebate is denied and I am out a lot of money or for some reason it gets accepted and I get a free minisplit (unlikely).

So I reached out to a few contractors today and one guy quoted me over $6,000 for the 9,000 BTU unit. Wow have prices really increased. I guess that's why there's the $10K whole home rebate. I am waiting on one more guy.

I called the number on the rebate but could not get through to anyone at MassSave so I left a message. I'll try again tomorrow. The contractor who quoted me over $6,000 told me I won't get the whole home rebate either.

[Beachcomber4]

Definitely shop around. We installed 5 zones in one of our homes recently (2 large 3 small) and it was under $20k. Currently looking over bids for another smaller home (1 large unit 2 small) and we are under $13k.To add a 2nd large unit for a 3 season porch the price increased by 4k. That install requires a larger condenser. I spoke to people in metro Boston who paid significantly more for comparable system.

[Louisville Slugger]

I got a bunch of quotes. Every contractor I spoke with said I would not get the $10K rebate. Most said I would at least be eligible for the partial. There was one guy who swore I would not even get the partial for a single zone (he said he filled out a bunch of the partial rebates for a single zone and one did not get accepted). I am not buying that.

Lowest so far was a little more than $5,500 for a single zone 9,000 BTU Mitsubishi. I am waiting for a few more, but I think I'll make a decision by next week. One contractor said the costs went up 40% over the last 18 months then there's the cost of the electrician. I am sure their prices vary as well. I don't see labor costs going down that much. Not sure how much product costs will decrease within a one year span. I have to think I'll make this money back when I sell because greatly improving the heating and cooling system is worth it in the long run. As far as saving money on my electric bill there's a bit of diminishing returns there after having two splits installed already.

I've been considering the 0% financing over 7 years through MassSave. I have the money, but if I spread it out over some time this might be a better option. I don't see myself moving at least for another 5 to 10 years so I think it would be worth it.

I am spending more time at home and recently moved my work setup into my bedroom after purchasing an electric height adjustable desk.

[Beachcomber4]

Originally Posted by Louisville Slugger

I've been considering the 0% financing over 7 years through MassSave. I have the money, but if I spread it out over some time this might be a better option. I don't see myself moving at least for another 5 to 10 years so I think it would be worth it.

I am spending more time at home and recently moved my work setup into my bedroom after purchasing an electric height adjustable desk.

I have been dragging my feet on the loan but might pull the trigger. We paid out of pocket in full and have been told the rebate program is backed up 10-12 weeks. I feel for people who don't have the money to put up front.

The labor costs are killer. We need some electrical work done before we can get the system installed in our rental. Getting an electrician there to price that work out is a challenge.

Good for you on that purchase. So many people with back and neck issues because they did not have the ergonomically correct office set ups they were accustomed to.

[Louisville Slugger]

This is insane:

https://www.nbcboston.com/news/local...inter/2840633/

National Grid customers are expected to see a 64% increase in their electric bills this winter, the company announced Wednesday.

In a press release titled "Winter Customer Savings Initiative," the power company announced that natural gas prices are expected to be significantly higher this winter due to "global conflict, inflation and high demand," which will result in a hefty increase in their electricity rates starting Nov. 1.

National Grid said the monthly bill of a typical residential customer using 600 kilowatt-hours will increase from $179 last winter to about $293 this winter, an increase of about 64%. National Grid said the delivery portion of electric bills will basically remain flat.

Sorry a bit off topic here.

https://www.nationalgridus.com/media.../resitable.pdf

Look at these proposed rates.

I locked in my supply rate at 9.709 ¢/KWH until November 2023 through the Mass Power Choice program https://www.masspowerchoice.com/

This verbiage concerns me:

"Prices include a $0.001 /kWh administration fee. Program prices could increase as a result of a change in law that results in a direct, material increase in costs during the term of the electricity supply agreement. Program prices apply only to the electricity supply portion of your National Grid electricity bill. Delivery charges on your National Grid electricity bill are not affected by participation in Westborough Power Choice."

I tried calling to see if I am definitely locked in 100% and my rate will not change but I get transferred to a mailbox that's full...

[Louisville Slugger]

Originally Posted by Beachcomber4

I have been dragging my feet on the loan but might pull the trigger. We paid out of pocket in full and have been told the rebate program is backed up 10-12 weeks. I feel for people who don't have the money to put up front.

The labor costs are killer. We need some electrical work done before we can get the system installed in our rental. Getting an electrician there to price that work out is a challenge.

Good for you on that purchase. So many people with back and neck issues because they did not have the ergonomically correct office set ups they were accustomed to.

Wow 10-12 weeks.

I reached out to my old contractor who said I could get the $10K whole home rebate and asked if I could get a contingency clause added to the proposal that basically states the proposal is contingent upon the rebate being accepted and if denied I would only have to pay 50% of said proposal. His proposal was pretty much twice the cost of everyone else.

No response.

I decided to go with a different contractor and he is going to come out next week to look at the property to make sure there's no surprises (and my electrical panel will work with the new split). Then he'll write out a formal proposal and I can get started with the heat loan process.

[wolfgang239]

Originally Posted by Louisville Slugger

Look at these proposed rates.

And now all of the "stop the pipeline/transmission line/nuclear energy!!!" folks get to see the consequences of their actions. Of course there are many factors at play in the wholesale generation market, but we overbuilt natural gas with no good way to supply it. The Jones Act and our dependence on LNG tankers delivering gas from Trinidad and Tobago, Canada and now not Russia means we compete for a commodity that is costing us big time due to the global marketplace. A few pipelines and more Canadian Hydropower would have at least made it sting less.

If you have the option to switch to a city or town municipal aggregation program that extends into 2023 now would be the time.

[Louisville Slugger]

Originally Posted by wolfgang239

And now all of the "stop the pipeline/transmission line/nuclear energy!!!" folks get to see the consequences of their actions. Of course there are many factors at play in the wholesale generation market, but we overbuilt natural gas with no good way to supply it. The Jones Act and our dependence on LNG tankers delivering gas from Trinidad and Tobago, Canada and now not Russia means we compete for a commodity that is costing us big time due to the global marketplace. A few pipelines and more Canadian Hydropower would have at least made it sting less.

If you have the option to switch to a city or town municipal aggregation program that extends into 2023 now would be the time.

I am so glad my supply rate is locked in until November 2023. If I had to pay a supply rate of $0.33891 per kWH I am looking at a $627 bill during the middle of winter. That would be almost as much as my mortgage. That's with heat pumps too. If I was still on 100% electric resistance I am sure my bill would easily be more than my mortgage.

I hope this not the new normal. Once November 2023 rolls around I hope the new contract that's negotiated for the new three year supply rate isn't as crazy.