Airbnb’s Pilot Program Gives Its MA Owners Rebates For Heat Pumps, Weatherizing, & Energy Upgrades

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As part of my multiple income stream, I have been an Airbnb host for several years. It’s been a wonderful experience, meeting people from all over the world, swapping stories about travel and experiences — while adding to my family’s savings. All these earnings, of course, need to be analyzed against expenses, and the New England Airbnb property surely had its share of heating costs that played against profitability. An attempt at installing heat pumps about 7 years ago in 2 cottages was only partially successful, as the capacity of the pumps wasn’t then what it is today, and certified repair folks were hard to locate. So, when I heard this week about Airbnb’s pilot program that offers Massachusetts hosts a chance to install heat pumps, I was intrigued.

Chip in a few dollars a month to help support independent cleantech coverage that helps to accelerate the cleantech revolution! Airbnb says that its work is ongoing to help hosts take action toward sustainability. A new home energy efficiency program in Massachusetts (MA) is designed to assist hosts to make energy-efficient upgrades to their homes that will reduce both their carbon footprint and their energy bills. It is the company’s first home energy efficiency program in the US.

In 2021, Airbnb committed to a goal of operating as a net zero company by 2030 through reducing carbon and other greenhouse gas emissions associated with their global corporate operations and investing in quality nature based solutions to offset residual emissions. In 2022, the company launched sustainability programs in the UK and France. In the UK, up to £3,000 grants to support energy efficiency improvements were possible for hosts working with the Saving Trust. In France, hosts could access up to €2,200 as part of a million-euro plan to help renovate rentals to be more ecologically friendly. Such renovations included insulating a property or installing a heat pump.

Last year, the company also announced it was teaming with ride-hailing service Lyft, online real estate brokerage Redfin, nonprofit Rewiring America, and others to enhance home electrification, with the goal of reaching 10 million of the 121 million US households by mid-decade.

A key focus of the transition to clean energy is the conversion of conventional heating, air conditioning, and ventilation (HVAC) systems from gas or fossil fuel-sourced systems to all-electric heat pumps. This year, Airbnb’s pilot program, conducted in partnership with Massachusetts-based Abode Energy Management, will give vacation rental owners in that state incentives to install air-source heat pumps and make their properties more energy efficient. The Airbnb pilot program gives a helping hand to hosts who’d like to contribute to carbon pollution reductions by participating in cash rebates to electrify and weatherize their MA vacation rental homes.

The state’s utility-supported energy-efficiency program is Mass Save, which is a collaborative of Massachusetts’ electric utilities and energy efficiency service providers working to empower residents, businesses, and communities to make energy efficient upgrades. It offers several incentives:

• 75% or more off the cost of insulation projects
• No-cost air sealing
• A heat-pump rebate of up to $10,000

The heat pumps are especially appealing to northern US residents like those in MA who face long months of heating followed by quick shifts to humid summers, as heat pumps can efficiently heat a home in the winter and double as a cooling system in the summer. According to the US Energy Information Administration (EIA), one in four Massachusetts homes — the equivalent of over 650,000 homes — uses expensive fuel oil for heat in the winter, with each of those homes burning 440 gallons of oil for space heat each year. The Massachusetts Clean Energy Center estimates that by switching from an oil or electric resistance system to a new, efficient heat pump, the average Massachusetts home can reduce its annual carbon emissions by more than 3 metric tons.

Heat pumps are also a substantive step toward lowering greenhouse gas emissions. Air to water heat pumps are designed to provide efficient space heating through hydronic distribution, such as existing baseboard, radiant floors, or hydronic radiators.

The Airbnb/Mass Save Collaboration

Mass Save is offering whole home rebates to customers who install heat pumps as the sole source of heating and cooling. The application process starts with a Whole-Home Heat Pump Verification Form. Partial home rebates are being offered by Mass Save, too, based on equipment size (tonnage) to customers who plan to keep an existing boiler or furnace in place to supplement a new heat pump system.

Saying that a homeowner wants to get a heat pump isn’t all that’s needed to join in with the Mass Save program, though. Ensuring a home has received sufficient weatherization is the best first step in any heating and cooling project. This is a requirement for whole home rebates and may qualify customers pursuing partial home rebates for an additional $500 bonus.

Here are the requirements to for Airbnb hosts to participate in the Mass Save program for heat pumps.

• The host must be a Massachusetts resident.
• The Airbnb listing site must get its electricity from either National Grid or Eversource.
• The equipment must be installed by a contractor participating in the Mass Save Heat Pump Installer Network between January 1, 2023, and December 31, 2023.
• The equipment must be listed on the Mass Save Heat Pump Qualified Products List.
• The rebate form and supporting documentation must be received back at Mass Save by February 29, 2024.

On top of the rebates that Hosts may be eligible for through Mass Save, Airbnb will provide additional grants of up to $2,500:

• Up to $500 for completed weatherization upgrades, including air sealing and insulation — According to Mass Save, properly insulating and air sealing a home can cut heating and cooling costs for the typical homeowner by 20%; and,
• Up to $2,000 for completed air-source heat pump installations. A heat pump is a single electric appliance that can replace both a traditional air conditioner and home heating system (like a furnace or boiler). They are 3 to 5 times more energy efficient than traditional heating systems, run on electricity, and work in all climates.

Abode will match eligible hosts with a Home Performance Contractor (HPC) to schedule a no-cost Mass Save Home Energy Assessment, which will inform hosts on upgrades they need. Additionally, Abode will work with hosts that hope to join into Airbnb’s pilot program to address their questions and discuss financing options that meet their individual needs. To make these home improvements affordable, Abode will help hosts access rebates of up to $10,000 through Mass Save to convert to air-source heat pumps and additional rebates for weatherization upgrades, depending on eligibility.

Between Airbnb grants and Mass Save rebates, hosts in Massachusetts could lower weatherization project costs by up to 100% and reduce heat pump costs by up to $12,000. Hosts can also take advantage of the federal benefits in the Inflation Reduction Act, including a 30% tax credit of up to $2,000 for heat pumps. (Of course, it’s best to check with your accountant to see if you are allowed to double- or triple-dip among these various rebates.)