Money for your Somerville home: rebates, grants and 0% loans worth knowing in 2026

A lot of Somerville homeowners pay full price for work that a rebate, grant or 0% loan could have covered in part. These are the programs I check with clients before we price a project. Amounts below are from the official program pages as of October 2026 — always confirm with the program before you sign anything.

1. Mass Save heat-pump rebates — act before January 1, 2027

• Whole-home air-source heat pumps installed in 2026: $2,650 per ton, up to $8,500.
• Partial-home: $1,125 per ton, up to $8,500.
• On January 1, 2027 these drop — whole-home to $2,350 per ton (max $7,500) and partial-home to $1,000 per ton (max $7,500).
• Whole-home rebates require the house to be weatherized first, and the installer must be in Mass Save's Heat Pump Installer Network.

Source: Mass Save — air source heat pumps.

2. Insulation: 75% to 100% off

Mass Save covers 75–100% of approved insulation and air sealing, and rental units and 2–4-unit buildings may qualify for 100%. The first step is a free Home Energy Assessment (866-527-SAVE). Somerville also has its own Mass Save line: (617) 329-4825.

Sources: Mass Save — insulation · Mass Save — Somerville.

3. The HEAT Loan: 0% financing up to $25,000

The Mass Save HEAT Loan offers 0% financing up to $25,000 (total across your HEAT loans) for weatherization, heat pumps, heat-pump water heaters, and qualifying windows. Apply through Mass Save financing.

4. City of Somerville Home Improvement Program

For buildings of up to 7 units where households are at or below 80% of area median income (for example, $96,000 for one person or $137,100 for a family of four):

• Health and safety repairs — stairs, porches, roofs, windows, sewer: up to $50,000 per unit.
• Lead paint — up to $7,500 per unit when a young child lives there or is expected.
• Heating systems — up to $10,000, or up to $15,000 when switching from fossil fuel to electric.

These are loans recorded on the property, generally repaid when you sell or refinance, with rent limits on rental units. Contractors must hold a Construction Supervisor License and HIC registration. Details and the interest form: somervillema.gov/housingrehabilitation.

5. Save Energy Somerville microgrants (for small landlords)

Owners of 2–4-unit buildings can get $2,000 per unit for energy upgrades in units rented to income-eligible tenants — weatherization, heat pumps, heat-pump water heaters, appliances and related electrical work. See somervillema.gov/ses. The City also has a free Energy Advisor who can walk you through your options.

6. Building an ADU? MassHousing's ADU loan

MassHousing lends up to $250,000 for a detached ADU and up to $150,000 for an attached one, to owners of a single-family primary residence. You need plans and permits before applying, and work can't start before closing. See MassHousing ADU loans.

How to use these without slowing your project down

1. Start with the energy assessment. It unlocks insulation pricing and is required for several programs.
2. Sequence the work: weatherize first, then heat pumps — that's the order the rebates require.
3. Keep paperwork in one place: invoices, model numbers and permits. Rebates are paid on documentation.
4. Don't start early. Several programs (like the ADU loan) won't fund work that began before approval.

Not sure what you qualify for? Send me your address and project — I'll point you to the programs that fit before we price anything.