State and Federal Incentives

(more info on Town's website on Energy Efficiency and Electrification)

  1. MassSave $10,000 rebate

  2. 0% interest 7-year Heat Loan up to $25,000

  3. IRA (Inflation Reduction Act signed by the federal government):

    • $300 tax credit in 2022

    • $2,000 tax credit for heat pumps and $600 for electric control panels

You can utilize the above incentives for the latest clean technologies designed for the cold climates:

  • Space heating and cooling:

    • Air-Source Heat Pumps (ASHP)

    • Ground-Source Heat Pumps (GSHP, also called geothermal heat pumps)

  • Hot water:

  • Electric cook tops

MassCEC guides:

(Additionally there is an $0.01/KWH rate reduction by Eversource if 90%+ of a home is heated by electricity (about $100 annual savings for households who use 10,000 KWH per year). Contact Eversource for more details.)

Air-Source Heat Pump Cost Comparisons

  • Installation: Air-source heat pumps cost less to install and maintain because of rebates/incentives and because it combines heating and cooling in one system.

  • Operation: For heating alone, operating heat pumps cost significantly less than oil or propane and even less than natural gas at 2022 prices.

Based on current utility and fuel prices as of stated date and average heating load of newest homes in Lexington (88.35 MMBtu).

Assumed fossil fuel efficiencies: gas 96%, propane 96%, oil 80%. Assumed heat pump COP: 3.2

Sources:,,,, Lexington Community Choice, and Lexington Permit Database

Source: Winter 2021/2022 Mass DOER.

This comparison from 2020 Mass DOER data is "based on an average house in New England which is assumed to be 2186 square feet (sq.ft) with a heated area of 1861 sq ft."


Solar powered, all-electric, near zero-emission, affordable low-income homes on Fairview Avenue built by Lexington Housing Assistance Board (LexHAB) use about 1 - 3% of the energy consumed by similarly sized homes built to the standard building code.

(Read more in the article written by Select Board member Mark Sandeen.)

Farmview affordable low-income homes built by LexHAB are solar powered, all-electric, near zero-emission. (Read more)

This 7,640 sq. ft. major renovation project received a $10,000 rebate from MassSave. It is US DOE Net Zero energy-ready and fossil fuel free.

Multiple homes on Cart Path Lane and Stage Coach Rd use geothermal ground source heat pumps (GSHP).

Maria Hastings Elementary School uses heat pumps for heating and cooling. Its cafeteria is the first among Lexington schools to have a dishwashing facility for reusable food-ware in recent decades.

Lexington Children's Place uses heat pumps for heating and cooling.

Lexington Fire Station uses heat pumps for heating and cooling.

Electric Construction MA Case Studies.pdf

Lexington family enjoying Clean Heat

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Natural Gas Is Not Clean