Energy Efficiency Incentives in Massachusetts: What Building Owners Should Know for 2026
As energy costs continue to rise and sustainability goals gain momentum, Massachusetts offers one of the most robust portfolios of energy efficiency incentives in the country. For commercial building owners, industrial facilities, and property managers, understanding these incentives can unlock immediate cost savings, reduce long-term operating expenses, and support broader decarbonization goals.
Whether you’re planning a major HVAC or refrigeration upgrade in 2026 or simply want to improve the performance of your existing systems, now is the time to plan strategically for rebate and incentive opportunities.
Why Energy Efficiency Incentives Matter
Utility bills, heating and cooling loads, and refrigeration energy use often make up a significant portion of a building’s operating budget. Incentive programs help offset the upfront cost of efficiency upgrades, including:
- High-efficiency HVAC and refrigeration equipment
- Building automation and advanced controls
- Efficient lighting and envelope improvements
- Heat recovery and energy management systems
These programs also support environmental goals, reducing greenhouse gas emissions and helping facilities comply with mandates like BERDO2.0 (Boston’s Building Emissions Reduction & Disclosure Ordinance) and other local policies.
Mass Save® Business Rebates & Incentives
Massachusetts’ Mass Save program is one of the state’s primary incentive vehicles for commercial and industrial customers. Through Mass Save, eligible businesses can access:
1. Equipment Rebates
Rebates are available for upgrading to high-efficiency systems, including:
- Rooftop units and chillers with higher efficiency ratings
- Variable refrigerant flow (VRF) systems
- Heat pumps and heat recovery equipment
- Efficient refrigeration systems and controls
These rebates can significantly reduce upfront capital costs while improving long-term performance.
2. Custom Energy Efficiency Incentives
For larger projects or unique system upgrades, Mass Save offers custom incentive pathways that support energy modeling and savings analysis. These incentives are typically tied to expected energy savings and may cover a portion of project costs that standard rebates do not.
3. Technical Assistance
Mass Save also supports energy audits and feasibility studies that can help you identify where efficiency upgrades will deliver the most value — and how much of that investment can be offset by incentives.
Federal Opportunities for Energy Efficiency
In addition to state incentive programs, federal initiatives such as the Inflation Reduction Act (IRA) have introduced tax credits and performance-based incentives for energy-efficient equipment and electrification projects.
Commercial building owners should explore:
- Tax deductions for energy-efficient commercial buildings (e.g., Section 179D)
- Bonus deductions for specific system upgrades
- Emerging IRA-linked performance incentives
Combining federal benefits with state utility incentives can create powerful financing support for major system improvements.
Key Upgrades That Qualify for Incentives
Here are examples of common commercial and industrial upgrades that often qualify for rebates and incentives in Massachusetts:
- High-efficiency HVAC systems
- Variable frequency drives (VFDs) and advanced controls
- Premium efficiency motors
- Heat recovery ventilation and energy recovery systems
- Building automation system (BAS) integration
- Efficient refrigeration systems and case controls
- Advanced sensors and real-time monitoring platforms
Many programs also provide incentives for commissioning, monitoring-based commissioning, and measurement & verification —activities that help ensure systems operate as designed.
Timing Matters
To capture maximum incentive value, planning ahead is critical. Most utility programs require:
- Pre-approval before purchase or installation
- Detailed project documentation
- Participation in energy audit or feasibility assessments
Failing to engage the program early in project planning can disqualify a business from incentive reimbursement.
Steps to Maximize Your Incentives in 2026
To make the most of incentive opportunities for next year:
1. Conduct an Energy Audit
Identify where your biggest energy usage and savings opportunities lie. An audit can qualify you for enhanced incentives.
2. Develop a Prioritized Upgrade Plan
Map out improvements over the next 12–36 months with an eye toward eligibility windows for incentives.
3. Engage with Incentive Administrators Early
Contact Mass Save and utility representatives before ordering equipment or starting work.
4. Combine Incentives Strategically
Layer state rebates with federal tax incentives and performance programs for maximum financial benefit.
5. Track Your Savings
Document system performance to support reporting, compliance, and future incentive eligibility.
How Northstar Refrigeration Can Help
At Northstar, we assist building owners and facility managers at every step of the energy efficiency incentive process. Our services include:
- Incentive screening and rebate qualification
- Energy audit coordination
- Equipment recommendations tailored to incentive criteria
- Project scoping and documentation support
- Installation, startup, and performance verification
- Long-term maintenance planning
Pro Tip: Many incentives require documentation that includes system specifications, efficiency ratings, and project summaries —Northstar can help prepare and organize this information so nothing is missed.
📞 Call us at (508)888-3692 to start planning your 2026 incentive strategy and upgrade roadmap.