Time Is Running Out: Lock In 2025 Heat Pump and Geothermal Tax Credits Before They Expire
If you're a homeowner or property manager on Nantucket considering a high-efficiency heat pump or geothermal system, now is the time to act. The federal energy tax credits for both technologies are scheduled to expire on December 31, 2025. That might seem far off, but with fewer than 160 days remaining and equipment lead times already stretching 8 to 10 weeks, the window is closing fast.
Installations are booking into September, and demand is only increasing. North Winds Mechanical has seen a sharp rise in inquiries since the passage of the bill ending the credits. Homeowners across the island are rushing to secure inventory, installation slots, and rebates before they’re gone.
Why Lead Times Are Getting Longer
The announcement that federal tax credits would end in 2025 triggered a nationwide surge in demand. Heat pump and geothermal equipment manufacturers are struggling to keep up, and installers are booking months in advance.
What used to be a 6-week geothermal timeline can now take 10 to 12 weeks or more due to permitting, drilling schedules, and limited product availability. Waiting until fall may already be too late for many homeowners hoping to claim the full credit.
Existing Geothermal Owners: Take Note
If your geothermal system is 10 years old or more, you may qualify for a full 30 percent tax credit if you upgrade to a newer, more efficient model in 2025. After this year, those savings disappear.
New geothermal units are quieter, more efficient, and better suited for zoning and smart controls. But planning, ordering, and installation all take time. We strongly recommend booking an evaluation now if you're considering a system replacement.
R-410A Heat Pumps Are Being Phased Out
Another major factor driving demand is the phaseout of R-410A refrigerant. These systems are no longer in production. Once current stock is sold, the industry will fully shift to R-454B-based systems, which are already priced up to 50 percent higher.
North Winds Mechanical has limited inventory of R-410A heat pumps in our Nantucket warehouse, but supplies are going fast. For homeowners looking to install high-efficiency ductless or ducted heat pump systems, this is the last chance to do so before costs rise significantly.
Mass Save Rebates Will Drop in 2026
The current Mass Save rebates offer up to $10,000 for eligible whole-home heat pump and geothermal installations. In 2026, these incentives are expected to be reduced.
Installing this year locks in the highest available rebates and allows you to stack them with federal tax credits for maximum savings.
How to Take Action
If you're considering a heat pump or geothermal system — or already own one that’s aging — here’s what to do next:
Book a consultation to review your current system or plan a new installation
Reserve your equipment while R-410A units and geothermal components are still in stock
Secure your install date before the calendar fills up
File for incentives with guidance from our team to make sure you claim every available rebate and tax credit
Why Work With North Winds Mechanical
We’ve helped hundreds of Nantucket homeowners and property managers upgrade to high-efficiency, future-ready HVAC systems. Our team is based on-island, and we know how to design, deliver, and support complex geothermal and heat pump installations in Nantucket’s unique conditions.
From permitting and rebates to long-term service, we handle the process end-to-end — so you can focus on comfort, reliability, and savings.
Don’t Miss This Opportunity
Delaying could cost you thousands. Federal and state incentives are ending. Equipment is harder to find. Schedules are tight. If you wait until the end of the year, it may be too late.
Call us at (508) 825-6297 or contact us online to schedule your consultation.
North Winds Mechanical
Nantucket’s Heat Pump and Geothermal Experts
https://northwindsmechanical.com
