Massachusetts Electric Utility Customers Will Soon Be Eligible for Heat Pump Discount Rates

Submitted by Mark Minnichelli – member, Energize Franklin

"The Massachusetts Department of Public Utilities has recently approved new, lower electric rates for residential customers using heat pumps to heat their homes. Franklin residents who heat their homes using heat pumps should contact their electric supplier (typically National Grid) to enroll in the new residential heat pump rate prior to November 1, 2025. And since these new, lower rates apply to the distribution and transmission charge portion of the bill, even those who are using Franklin’s municipal aggregation rate for electric supply should still see significant savings!

On Friday, September 5th, I called National Grid requesting access to the new heat pump electric rate. I was told that I would need to provide proof of heat pump purchase and installation, but that National Grid was not yet ready to accept applications. I was also told they would be ready for applications by the end of September or beginning of October; roughly the time of publication for this article.

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If you are a National Grid customer, check out their website www.nationalgridus.com or call their customer service number: 800-322-3223 for more information on how to enroll."

The following information regarding details of this new program were published on the Mass.gov website on July 29, 2025:

BOSTON — The Massachusetts Department of Public Utilities (DPU) recently issued an order approving a new heat pump rate that eligible Eversource customers can start taking advantage of this winter. Customers of all three electric utilities that use heat pumps will be able to enroll in the seasonal electric rates which could save them an average of $540 this winter.  

Last summer, the DPU approved a seasonal heat pump rate for Unitil electric customers, and it approved a similar rate in September of 2024 for National Grid customers. The DPU worked quickly to approve Eversource’s rate, taking only four months to conduct the proceeding before issuing its order. Now, customers of all three electric utilities can access heat pump rates. The new rates will be available every winter for qualifying customers.  

“With heat pump adoption picking up statewide, these discount rates will further help make a dent in winter heating bills,” said Chair James Van Nostrand. “The seasonal rates we approved for heat pump households puts money back into customers’ pockets.”  

“This new order makes it possible for electric customers with heat pumps to lower their utility bills in the winter while strengthening our grid and reducing harmful emissions,” said Commissioner Cecile Fraser. 

“By approving these flexible rates for the winter, we make heat pumps more cost-effective, and improve air quality and public health,” said Commissioner Staci Rubin. “The new rates effective this winter make our clean energy transition more affordable and accessible.”   

Heat pumps make it possible for households to decarbonize quickly and efficiently, with minimal impacts to their homes. Heat pumps use electricity to both cool and heat homes, making them an economical solution to mitigate volatile winter utility bills. 

These seasonal rates are at a lower cost than the average 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.  

To be eligible for the new rates, households must be customers of one of the three electric utilities (Eversource, National Grid, and Unitil), have a heat pump installed in their homes, and communicate to their electric provider that they wish to enroll in the seasonal rate before the winter heating season starts on November 1, 2025. Residential customers in the electric utilities’ low-income discount program that use a heat pump are able to also enroll in the new seasonal rate.  

Customers who installed their heat pumps through Mass Save may be automatically enrolled in the new rates but should call their electric utility provider to confirm their enrollment.

Energize Franklin is an online space where friends and neighbors here in Franklin can find inspiration and see what others in their community are doing. Anyone can go to the site to browse the suggested actions, or you can sign up and track the actions you’ve done and create a to-do list for items you would like to accomplish. Having a free account also allows you to track your carbon reductions and leave a testimonial. You can find us online at www.energizefranklin.org.