The Financial Appeal of Heat Pumps: A Big Step Forward for Winter Savings

Heat Pumps: Great News for Winter Savings

We have exciting news for households using heat pumps this winter! A new seasonal heat pump rate for Massachusetts’ residential electric customers of Eversource, National Grid and Unitil will start on November 1, 2025, helping many families save on their electric bills.  This rate is for customers who use a heat pump for space heating and will be available from November through April.

**The seasonal heat pump rate shown above will be adjusted on January 1. That specific rate and the bill impact is still being determined.

What you need to know:

• The lower rate applies to heat pumps that are used for space heating, and enrollment details vary by utility (Eversource, National Grid, Unitil). 
• If you received a heat pump rebate through the Mass Save program after January 1, 2019, you’ll be automatically enrolled in the new rate.

Customers who bought a heat pump outside of the Mass Save program need to verify their eligibility by providing some additional information to their utility.  Check your utility’s website for the most up-to-date information about how to enroll.

What this means for you:

• The new rate will lower your winter electricity costs, helping you stay comfortable while saving money.
• You’ll know you’re enrolled by looking for the heat pump rate on your bill (the process is managed by your utility).

Tips for households

• If you installed your heat pump through a Mass Save program, keep an eye on your mail or email for enrollment notifications from your electric utility.
• If your installation was before 2019 or not Mass Save-based, stay tuned to your utility’s website for enrollment steps and required documentation.
• Look for guidance on your bill that shows the heat pump rate (HP) so you can confirm enrollment. This varies a bit by utility:
  • Eversource
    • On the second page of your bill, next to “Rate,” you will see R1HP or R2HP (“HP” indicates heat pump rate).
  • National Grid
    • You’ll find this message reflected on your bill: “You are currently enrolled in the Heat Pump Rate, which provides a lower distribution charge during the winter heating season. The reduced rate is applied to November through April kWh usage and is included in the distribution charge line item under the Delivery Services section of your bill. To view the current rate and learn more, visit ngrid.com/heatpumprate”
  • Unitil
    • On page 3 of your bill (the front side of the second sheet of your bill) you will see a table summarizing your meter usage for the current cycle. The last column of the table is “Rate Code” where you will see the letters “HP” to indicate Heat Pump rate.

Next steps

• Visit your utility’s Heat Pump Rate page for the latest guidance and bill impacts.
• Share this information with neighbors and local groups who might benefit.
• Read the FAQs on the MassSave website for more information

This is good news for households planning for a warmer, more affordable winter.