Press Release: 11/4/2025

Reduced Heat Pump Electricity Rates Available for Households Across Massachusetts

 

As of November 1, over 100,000 customers will begin saving hundreds of dollars this winter heating season

FOR IMMEDIATE RELEASE:

11/04/2025

 

BOSTON — The Healey-Driscoll Administration today joined with Eversource, National Grid and Unitil to raise awareness about new electric heat pump rates as the winter heating season begins. Governor Maura Healey called for expanded heat pump rates in her Energy Affordability Agenda announced in March. Starting this winter, the seasonal reduced rates are available to residential customers of the three major utilities who heat their homes with heat pumps, one of the most efficient forms of heating. 

Over 100,000 customers who have installed heat pumps after January 1, 2019, and received a Mass Save incentive were automatically enrolled in the heat pump rate, starting November 1, 2025. Close collaboration between Eversource, National Grid and Unitil – under the direction of the Healey-Driscoll Administration – has made this benefit possible. 

“We’re delivering more energy cost savings this winter – and more than 100,000 people will see their bills reduced starting this month,” said Governor Maura Healey. “Earlier this year, I called on the DPU to find solutions that lower costs for residents, and the approval of this heat pump rate is a strong example of that work in action. But we need to do more, which is why I filed energy affordability legislation to get more costs off bills and bring more energy into Massachusetts.” 

“Massachusetts residents and families will see real benefits from this seasonal heat pump rate,” said Lieutenant Governor Kim Driscoll. “This is an important step toward making energy efficiency more affordable and accessible.” 

“Heat pumps are more efficient and reduce the strain on our grid in the summer,” said Executive Office of Energy and Environmental Affairs Secretary Rebecca Tepper. “The seasonal heat pump rate helps residents lower their winter electricity costs at no cost to other customers, while using less energy to heat and cool your home.” 

“The new heat pump rates will make energy-efficient heating more accessible,” said Energy Resources Commissioner Elizabeth Mahony. “As DOER’s January petition argued, a heat pump rate will make upgrading your home more affordable, especially as heat pump adoption takes off across the state.” 

Autoenrollment Process 

The reduced rate will be in effect for qualifying customers November 1 through April 30. During the summer months, heat pump customers will have the same rate as non-heat pump customers.    

Eversource, National Grid and Unitil residential electric customers who installed a heat pump through a Mass Save program after January 1, 2019, are automatically enrolled in the heat pump rate and should have received written notification from their respective utility by this past Saturday, November 1.  

Customers who use a heat pump but did not receive this notification, likely because they did not install their heat pumps through the Mass Save program or installed one before January 1, 2019, should visit their electric utility’s heat pump rate webpage for details and enrollment information: 

• Eversource: eversource.com/heat-pump-rate 


• National Grid: ngrid.com/heatpumprate 


• Unitil: unitil.com/ma-heat-pump-rate  

“In 2023, when we sought approval for the first utility-offered heat pump in Massachusetts, we saw an opportunity to make the adoption of this technology more cost effective for our customers,” said Katherine Bourque, Senior Vice President, External Affairs and Chief Customer Officer at Unitil. “Heat pump rates help households better manage their energy costs while supporting the Commonwealth’s clean energy goals, and we are pleased to see expansion of the concept statewide.” 

“With electrification of the heating sector in Massachusetts expected to continue progressing, an electric heat pump rate just makes sense for customers,” said Penni Conner, Executive Vice President of Customer Experience and Energy Strategy at Eversource. “This seasonal rate removes a key financial barrier to adopting heat pumps, which is higher winter electric usage, and allows customers with heat pumps to better manage their energy expenses while ensuring costs are shared equitably. Solutions like this are essential to achieving the Commonwealth’s clean energy goals while keeping affordability top of mind, and we appreciate the Administration’s support and focus on this critical issue.” 

“National Grid is committed to providing the safe, reliable, and affordable energy our customers expect,” said Bill Malee, Chief Customer Officer at National Grid. “We’re proud to team up with the Healey-Driscoll Administration and fellow Massachusetts utilities to offer a new winter heat pump rate—helping residential heat pump users save on electricity and manage their winter bills.” 

  

How It Works 

A heat pump is a heating and cooling system that moves heat indoors in the winter and draws heat outdoors in the summer. Because they transfer heat, rather than generating it, heat pumps can be up to three times as energy efficient as conventional boilers or furnaces. An air-source heat pump – the most common type of heat pump – can reduce your electricity use for heating by up to 75 percent compared to electric resistance heating, such as baseboard heaters. High-efficiency heat pumps also dehumidify better than standard central air conditioners, resulting in less energy usage and more comfort in summer months.  

These seasonal rates are lower than the standard base distribution rates from the electric utilities. The new rates for heat pump households will have no financial impact on other electric customers: non-heat pump households will not pay more for electricity this winter because of the new rate.   

For more information about the heat pump rate, please visit MassSave.com/heat-pump-rate. 

Massachusetts residents interested in upgrading to clean, all-in-one heating and cooling solutions are encouraged to take advantage of affordable, energy-efficient heat pumps and the new seasonal heat pump rate for their homes. Learn more at MassSave.com/heatpump.  

Statements of Support 

Mary Wambui, Planning Office for Urban Affairs: 

“I recently moved into a rental apartment in Lowell with heat pumps—a big shift from my old, gas-heated rental unit. Without the heat pump rate, I couldn’t have made this transition. Now I can afford clean, comfortable electric heat without fearing the bill. I applaud the Healey administration for making fuel switching possible for renters in Gateway Cities like mine.” 

Gustavo Quiroga, Executive Director, LISC Massachusetts: 

“LISC Massachusetts applauds the Healey-Driscoll Administration for leading efforts to lower energy costs for residents enjoying heating and cooling from high efficiency electric heat pumps. This new, lower utility rate for heat pump customers will result in meaningful savings for owners & operators of multifamily affordable housing who have taken steps to build healthy, resilient, and sustainable homes for residents and families across the state. As the cost of building and operating affordable housing continues to rise, the heat pump utility rate will also make it more feasible for housing owners and operators to invest in high-efficient building electrification to lower energy use, create more comfortable homes, and create the sustainable affordable housing we need for the future.” 

Sharon Scott-Chandler, President and CEO, ABCD: 

“A lower seasonal rate for heat pumps offers immediate relief for residents facing high energy costs, and is a tangible step toward greater energy efficiency and a cleaner future. ABCD is proud to serve as a strategic partner to help ensure that income-eligible households in Massachusetts can access and benefit from this innovation. We will continue to collaborate toward solutions that enable long-term energy affordability and sustainability.” 

Larry Chretien, Executive Director of the Green Energy Consumers Alliance: 

“These new heat pump rates will enable tens of thousands of families to save money by switching to heat pumps from fossil fuels. Financially, it's a game changer. And when people switch, it also improves their home's indoor quality. On a personal level, we are installing heat pumps this month, in part because of the new electricity rate.” 

Jenifer Bosco, Managing Director of Energy Advocacy of the National Consumer Law Center: 

“We commend the DPU and Massachusetts utilities for developing heat pump rates that help low-income families to access more affordable electric service to heat their homes. Since these are temporary measures, we look forward to continuing to work together to advance long-term affordability protections for low-income electric customers.” 

Erin Cosgrove, Director of Policy and Program at Northeast Energy Efficiency Partnerships (NEEP): 

“Massachusetts is leading our region and nation with heat pump rates that improve energy affordability for customers. These new seasonal rates significantly reduce the cost of running a heat pump, which makes winter bills more affordable for eligible households. It's also a smart approach that levels the playing field for families making the switch and supports the state’s climate goals.”