The following is a fictional story that details the economics of switching to heat pumps & solar.
Tom and Ana Pavao live in a 1940s colonial near Buttonwood Park in New Bedford. Tom works on the water as a commercial fisherman, and Ana is a nurse at St. Luke’s. Between their jobs and raising two kids, they weren’t looking for a major home project until they took a harder look at their heating and cooling costs.
Their house ran on heating oil and window AC units. It worked, but not well. Winters were cold and uneven, summers were hot and noisy, and energy bills were climbing above $4,000 a year. Feeling pinched by inflation, they began wondering if there was a more efficient way to heat and cool their home that could cut down on costs in the long run.
Getting Off Oil and Onto Something Better
The Pavaos learned about Mass Save’s rebates for heat pumps and decided to look into it. After conducting an energy audit and installing attic insulation and air sealing (both covered in part by Mass Save), they proceeded with a ductless heat pump system (often called “Mini-splits”).
Their setup:
One 18,000 BTU unit on the first floor
Two 9,000 BTU units upstairs (one for each bedroom zone)
Cost: $18,000
Mass Save rebates: $9,000
Federal tax credit: $2,000
Net cost: About $7,000
They financed the $7,000 balance with a 7-year 0% HEAT Loan, making fixed monthly payments of around $85. That replaced their unpredictable oil expenses with something far more manageable and efficient.
Solar to Power the System
What made the Pavaos an excellent fit for solar was the roof. Their house had a large, unshaded south-facing roof, perfect for a high-output system. With their electricity use about to increase due to switching to heat pumps, it made sense to add solar panels simultaneously.
We designed a 9 kW rooftop system to match their new electric needs.
System cost: $27,000
Federal tax credit: $8,100
Massachusetts credit: $1,000
SMART incentive (10 years): ~$9,000
Net cost after incentives: Around $9,000
Solar loan payment: ~$200/month
Together with their heat pump loan, their new total energy payment totals $285 per month. Their first year savings were pretty decent — around $580 total. But unlike their old oil and electric bills, these new payments were fixed, and their savings will increase over time as the cost of electricity and heating oil continues to rise.
The Outcome
Now, the Pavaos’ home is more comfortable in every season. Heating and cooling are quiet, even, and easy to control. There’s no more oil tank to fill or window AC units to drag in and out each year. Their solar panels generate approximately 13,000 kWh annually, enough to cover nearly all of their energy needs, including the increased usage from their heat pump system. Thanks to Massachusetts’ net metering policy, the excess electricity they generate during sunny summer months carries them through the winter, when demand is higher. Most months, their utility bill is close to zero, aside from the standard grid connection fee.
Altogether, they now pay $285 per month, which covers both their solar and heat pump loans. Before the upgrade, they averaged about $352 per month between oil deliveries and electric bills, often more in the winter when heating demand spiked. Now, not only are they paying slightly less, but they’ve replaced those unpredictable costs with fixed monthly payments. And once the loans are paid off (seven years for the heat pump and ten for the solar), their energy costs will drop to almost nothing, giving them long-term savings and energy sovereignty.
A Common-Sense Switch That’s Catching On
The Pavaos are fictional, but their story is based on real trends we’re seeing across New Bedford. Homeowners with older oil systems and high electricity costs are increasingly looking to modernize their homes by combining heat pumps and solar energy. This practical upgrade enhances comfort, lowers long-term costs, and makes homes more resilient to fluctuations in fuel prices.
Massachusetts currently offers some of the best incentives in the country for both technologies, including tax credits, rebates, and fixed solar payments through the SMART program. It is essential to note that the Republican “Big Beautiful Bill” currently before the Senate in Washington, D.C., aims to eliminate all of these federal programs starting January 1, 2026.
If you’re curious whether your home is a good fit, we can help.
Contact Whaling City Solar for a free consultation. We’ll explain your options, give you an overview of available incentives, and design a system that works for your home and your budget.
