Some good news in the clean energy world for a change. As of Nov. 1, Massachusetts’ investor-owned electric utilities (i.e., National Grid, Eversource, Unitil) will offer a “winter heat pump rate,” reducing the cost of electricity for homes with heat pumps by about $0.04 per kWh from November through April. According to the DPU filing, this should reduce winter heating bills by about 17%. If you’re someone contemplating ditching natural gas, this new rate dramatically improves the financial proposition. The DPU filing estimates households making the switch from gas to electric heat pumps would realize a 10% savings on heating costs.
There are a few other useful things to know.
Participation in Valley Green Energy — Northampton, Amherst, and Pelham’s Community Choice Aggregation Program — is fully compatible with participation in the winter heat pump rate. The winter heat pump rate impacts the “distribution charge” on your electric bill, whereas, participating in Valley Green Energy impacts the “supply charge” on your electric bill. So, you can support Valley Green Energy’s efforts to source cost-competitive clean energy while taking full advantage of the reduced rate.
While using a heat pump is a condition for accessing the winter heat pump rate, it’s worth noting that the rate applies to a household’s entire electric utility bill, making it more affordable to electrify not only your space heating, but also your hot water heating, cooking, and driving! And there is yet one more time-sensitive reason to electrify now. On Dec. 31, 2025, the One Big Beautiful Bill will end the 25C Energy Efficient Home Improvement Tax Credit that provides a tax credit of 30% of project costs, up to $2,000, for heat pump installations.
Finally, you must be wondering how to sign up and I would advise contacting your utility. Technically, if you accessed Mass Save incentives to install heat pumps you’ll be automatically enrolled, by why leave it to chance.
Ashley Muspratt
Northampton