Widespread adoption of heat pumps is essential for Massachusetts to meet its climate goals. But for many households, high electricity costs remain a barrier to making the switch from fossil fuels to this cleaner, more efficient heating technology. Heat pump rates, which are lower electricity rates for heat pump users during the winter months, can help address this barrier.
There are two versions of heat pump rates we are following right now. The first, which we are calling the “1.0 rate,” went into effect on November 1st, 2025. The second is a stronger “2.0 rate”, which is under investigation by the Massachusetts Department of Public Utilities (DPU) in Docket no. 25-08.
About the 1.0 Rate
As of November 1st, all three Massachusetts investor-owned utilities (Unitil, National Grid, and Eversource) launched these “1.0” lower winter electricity rates for homes that heat either partially or fully with heat pumps. This means that if you have a heat pump in Massachusetts, you pay less for the poles and wires portion of your entire electricity bill in the wintertime. On average, heat pump users can expect to save about $540 this winter, roughly a 17% reduction in heating costs compared to previous winters. This is a real game-changer for affordable clean heating in Massachusetts.
We want to make clear that this rate is not a discount, but rather right-sizes the amount that heat pump users should be charged for their cost to the system. You can learn more about why that is in the FAQ section below.
Here is what you can expect this winter by utility:
| Utility | Delivery Rate Change ($/kWh) |
| National Grid | -$0.0415 |
| Unitil | -$0.0600 |
| Eversource | -$0.7449 (distribution and transmission) |
1.0 Resources:
About the 2.0 Rate (Under Consideration)
The proposed 2.0 heat pump rate builds off the 1.0 rate by providing more significant delivery discounts that cover transmission and other delivery charges in addition to the standard delivery charges. This new rate, combined with cold-climate air-source heat pumps, would allow 82% of homes statewide to reduce their winter energy bills. More information on the state of this rate proposal and its benefits can be found below.
Currently, the DPU is still investigating even stronger rate designs (Docket 25-08), in response to a petition from the Department of Energy Resources. The initial public comment period has closed, and the Department is reviewing next steps. While this is not yet a formal docket, we’re hopeful it will soon become one - creating more opportunities for public engagement and participation. We’ll keep this webpage updated as the process evolves.
To demonstrate just how transformative DOER’s proposed seasonal 2.0 heat pump rates could be, a coalition of organizations - including the Environmental Defense Fund, ZeroCarbonMA, Rewiring America, Acadia Center, and Green Energy Consumers Alliance - commissioned an independent analysis by Switchbox. The goal was to generate clear, data-driven findings on how these rates would impact household economics and accelerate clean heat adoption.
The results are clear: the 2.0 rates could save Massachusetts residents hundreds of dollars on their heating bills and unlock major progress on climate and energy affordability. For more information, we encourage you to read the full Switchbox report, or at least the report fact sheet, and see how smart rate design can drive cleaner, lower-cost heating for Massachusetts heat pump users. Please find the report, our webinar on the key findings, the FAQ, and other resources below.
2.0 Resources: