New Electricity Rates for Heat Pump Users in Mass
As a homeowner in Massachusetts, heading into the colder months often means bracing for higher ...
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As a homeowner in Massachusetts, heading into the colder months often means bracing for higher heating bills. But here’s good news: if you heat (fully or partially) with an electric‐powered heat pump, you may qualify for discounted winter electricity rates that go into effect this November. These changes are designed to help you save money and make your home more energy‐efficient.
What’s changing?
Starting November 1 through April 30, the major electric utilities in Massachusetts — Eversource, National Grid and Unitil — will offer a seasonal heat pump rate for qualifying residential customers.
Under this program, the delivery portion of the electric bill (the charges for getting power to your home, i.e., distribution and transmission) will drop during the winter heating season for customers who use a heat pump for space heating. (WBUR)
Why this matters
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According to the state’s regulatory body, qualified households could save an average of about $540 over the heating season.
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For example: under the rate from Eversource, the distribution rate drops from roughly 6.26 cents/kWh to about 1.95 cents/kWh in the winter; transmission also drops from ~4.54 cents/kWh to ~1.41 cents/kWh.
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The reduced rate applies to your entire electricity usage during November–April — not just the heat pump portion. So your lights, plug loads, vehicle charging, etc., can benefit too.
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Since you live in a well‑insulated home in northern Massachusetts, using baseboards now and considering heat‑pump/hydronic options, this is timely: once you convert to a heat pump (or already have one) you can maximize these savings.
Who qualifies?
Here are the main eligibility criteria:
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You are a residential electric customer of one of the three utilities mentioned.
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You have a heat pump that heats your home (fully or partially). Mini‐splits or ducted heat pumps qualify.
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If your heat pump was installed through the Mass Save® program (or you received a rebate) after January 1, 2019, you may be automatically enrolled in the rate.
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If your heat pump was installed before 2019, or not through the Mass Save program, you may still qualify—but you’ll likely need to apply/upload documentation.
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Note: Customers served by municipally‑owned utilities (not the investor‑owned utilities) may not qualify under this program.
How to enroll
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If you were eligible for automatic enrollment (via recent Mass Save rebate) you should receive a notification from your utility ahead of Nov 1.
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If you did not receive automatic enrollment, you should check your utility’s website and submit required proof (installation invoice, equipment photo, etc.).
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Make sure to enroll before the billing cycle that captures November usage so you’ll get the full benefit.
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On your bill, look for a rate code indicating the heat pump rate (for example with Eversource it might show “R1HP” or “R2HP”).
Tips for current & prospective heat pump users
Since you’re considering a whole‑home air‑to‑water heat pump for hydronic heating and possibly domestic hot water (and also already have baseboards now), here are a few points to keep in mind:
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If you switch from electric resistance (baseboards) or from oil/propane to a heat pump, the savings could be even greater under this new rate because the heat pump runs on electricity and benefits from the delivery‐charge discount.
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Even if you only install the heat pump for only part of your home (e.g., 1st floor), you may still qualify — the rate benefits your entire electric usage during winter, not just the portion used by the heat pump.
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Before finalizing the installation of your air‑to‑water system (and perhaps a dedicated heat‑pump water heater), factor in the enrollment process and timing so you’re ready by November.
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Keep your documentation: receipts, rebate letters, equipment photos. The utility may ask.
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Also continuing to maintain good insulation/air sealing (which you already said your home is well‐insulated) complements this savings by reducing overall load.
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Remember: the rate reduction applies only to November 1 – April 30. From May to October you’ll revert to standard rates.
Bottom line
If you have, or plan to install, a heat pump in Massachusetts for home heating you are entering a favorable time. Thanks to the newly approved seasonal heat pump rate by the utilities, you can significantly reduce your winter electric bills — with average savings of around $500+ over the heating season. The key: confirm eligibility, enroll in time, and ensure the system meets the qualifying criteria. As your trusted real estate advisor and home energy‑efficiency resource, you’re in a great position to guide homeowners to both optimize their comfort and their monthly bills this winter.
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