We have an exciting update for Massachusetts households since we last wrote about heat pump rates in July: Starting November 1st, all three investor-owned electric utilities (Unitil, National Grid, and Eversource) will launch new, lower winter electricity rates for homes that heat either partially or fully with heat pumps.  

On average, Heat pump users can expect to save around $540 on their heating bills this winter, compared to what they paid in past winters. That’s roughly a 17% discount—a true game changer for clean heating in Massachusetts.

What You Need To Know 

• The lower rates will apply from November through April, covering all electricity use in homes with a heat pump. 
• This is great news, especially for households with heat pumps plus EVs, heat pump water heaters, electric dryers, and induction stoves—since the new rate applies to all of your electricity use during the winter. 

Here are the heat pump delivery rate changes by utility (compared to current delivery rates):

How To Enroll 

If you received a heat pump rebate through Mass Save after January 1st, 2022, you should be automatically enrolled in the new rate, but it’s a good idea to call your utility in October to confirm. 

If you did not receive a Mass Save rebate, you’ll need to call your utility and ask to be enrolled.  

Important Note: We suggest waiting at least until September before calling your utility, since this rate was just announced and customer service teams are still being trained. Just make sure to call before November 1st, when the new rate goes into effect! 

Looking Ahead: It Can Get Even Better

We applaud the Massachusetts Department of Public Utilities (DPU) for approving these new rates. At the same time, the DPU is investigating even stronger rate designs (Docket 25-08) in response to a petition from the Department of Energy Resources. (DOER). We expect to hear more soon about the next step in the process. Stay tuned for more opportunities for public engagement and participation.  

If DOER’s petition is approved, 82% of households would likely save money in the winter by making the switch, with typical savings of $687 per heating season!

To explore the potential impact of these stronger rates, a coalition of environmental organizations commissioned an analysis by Switchbox. The findings are clear: stronger heat pump rates would significantly improve household economics and speed adoption across Massachusetts. Here is a two-pager on the report findings.  

The bottom line: This winter, cleaner heat will be more affordable, and even bigger savings are on the horizon.