PLYMOUTH, Massachusetts — Massachusetts energy and utility companies filed a lawsuit alleging that a local HVAC contracting business defrauded the state’s energy-efficiency rebate program of more than $7 million.

Mass Save is a statewide energy efficiency program that pays rebates and incentives to businesses that install efficient equipment, sponsored by Massachusetts electric and natural gas utilities and service providers. 

According to the lawsuit, Mass Save program sponsors allege that MWD Heating & Air Conditioning Inc. and owner Mark W. Dyszczyk submitted rebate applications claiming qualifying heat pumps had been installed, while subsequent inspections found that equipment was missing, had never been installed, or had been removed after an initial inspection.

The investigation, which remains ongoing, includes inspections of 220 project sites, including a Rockland building where MWD allegedly received a $67,500 rebate despite no heat pump being installed and a Hingham private school where the company received $123,825 for equipment the sponsors say was never installed, the lawsuit alleges.

The complaint also alleges that MWD sought rebates for inoperable equipment and for equipment that did not qualify for the incentives claimed, contributing more than $3 million to the alleged total. The sponsors say they suspended MWD from Mass Save programs in May 2026 and later accused Dyszczyk and affiliated companies of attempting to circumvent the ban. The complaint states that the alleged conduct “damage[s] the reputations of not only the Sponsors, but also the thousands of ethical and skilled contractors” participating in Mass Save programs and could “undermine public trust” in the ratepayer-funded initiative.

The filing says Mass Save sponsors canceled or stopped $1.59 million in additional incentive payments for which MWD had applied. The sponsors are seeking to recover the allegedly misappropriated funds, monetary damages, attorneys’ fees, and other relief, including an injunction barring Dyszczyk, MWD, and associated parties from participating in Mass Save programs.

The lawsuit underscores the importance of accurate rebate documentation, installation records, and compliance with program requirements when participating in incentive programs. Contractors applying for rebates on behalf of customers must attest that the information submitted is accurate, making careful recordkeeping and verification an important part of the rebate process. The case also highlights how alleged misuse of incentive programs can affect the broader contractor community by potentially undermining customer and program administrator confidence in legitimate energy-efficiency work.