More than roughly 140,000 Massachusetts households with heat pumps are saving a combined $37 million on their heating bills this winter. The savings come from new electric rates designed specifically for heat pump owners. The program lowered what these households pay for electricity during the heating season.
The rate changes are part of a broader push to make heat pumps more affordable in Massachusetts. Heat pumps use electricity to heat and cool homes, replacing traditional gas or oil systems. Supporters say they’re cheaper to run and better for the environment.
Heat pumps replace gas and oil systems, offering cleaner, more affordable heating and cooling for Massachusetts homes.
Massachusetts has a long history of energy efficiency programs. The Mass Save program delivered $34 billion in benefits between 2012 and 2023. For every dollar spent, the program returned $3.51 in lifetime benefits. It also saved an estimated 18 million megawatt-hours of electricity each year.
Studies project that average household energy costs could drop 8% by 2030 compared to 2019 levels. Households that switch to heat pumps and add weatherization like insulation could save around $400 per year. Electricity prices also tend to be more stable than natural gas prices, which can swing sharply.
The program’s future isn’t guaranteed, though. In January 2025, $500 million was cut from Mass Save funding. Officials estimate that cut will result in $1.49 billion in lost lifetime benefits. It also eliminated savings equal to 20 trillion British thermal units of energy and blocked the reduction of 1.8 million metric tons of carbon emissions.
Beyond heating bills, heat pumps are credited with reducing greenhouse gas emissions and easing demand on the power grid. Non-participants also benefit when grid demand drops. Community outreach efforts have helped spread awareness about heat pumps across Massachusetts. Massachusetts is also the first state to implement seasonal heat pump rates with all major investor-owned utilities. Connecticut regulators, meanwhile, approved a $66 million rate hike for United Illuminating customers, highlighting the affordability pressures facing electric ratepayers across New England.
The federal government previously offered a tax credit for heat pump installations, but it expired in December 2025. Massachusetts residents who installed heat pumps before the deadline benefited from this incentive.
References
- https://www.canarymedia.com/articles/heat-pumps/winter-rates-massachusetts-heat-pump-owners
- http://bov.gmu.edu/wp-content/uploads/Meeting-Book-Board-of-Visitors-Meeting-Dec-4-2025-updt-12.5.25.pdf
- https://acadiacenter.org/author/adminacadiacenter-org/
- https://www.nationalgrid.com/document/137861/download
- https://saltcreekcap.com/salt-creek-acquires-pacific-shoring-llc/
- https://www.calmac.org/publications/CA_IOU_Residential_EE_Pulse_Report_FINAL_(1).pdf
- https://portal.ct.gov/dot/-/media/dot/programs/hartfordmobility/appendix-j—alternatives-screening.pdf?rev=f13d5574bdf442e9b912761f6b690f7d&hash=B36FE3A50DF3301552AD9E3200EE0B42
- https://nepis.epa.gov/Exe/ZyPURL.cgi?Dockey=94008BRV.TXT
