Understanding the New Massachusetts Heat Pump Rate

If you’ve installed (or are thinking of installing) a heat pump in your home, here’s something worth knowing: The new Massachusetts Heat Pump Rate could put real savings on your winter electric bill.

 

Why this rate matters

• The standard residential electric rate covers both supply (the electricity itself) and delivery (distribution and transmission through the grid). The Heat Pump Rate lowers the delivery portion for eligible homes during the winter months (Nov 1 – Apr 30).
• In the example Eversource provides, a home using about 1,670 kWh/month during winter could save ~$124 (≈ 23 %) just by being on the heat-pump rate rather than the standard rate.
• For homeowners this means: if your heating system uses a heat pump (rather than traditional electric resistance or fossil fuel heat), this rate aligns your electric delivery costs with that more efficient system.

Source: Eversource

 

Who qualifies?

Here’s the eligibility rundown:

• You must be a residential electric customer with Eversource in Massachusetts.
• If you received a rebate from the Mass Save® program (via Eversource) for installing a heat pump after January 1, 2019, you’ll be automatically enrolled on Nov 1, 2025.
• If you installed your heat pump before that rebate cut-off (or didn’t receive a Mass Save rebate), you can still apply manually.
• Note: This rate applies only to homes with heat pumps; those using electric resistance heat (baseboards, space heaters, furnaces) do not qualify.
• Also, solar or net-metering customers can participate, though the savings might be less dramatic since those customers already offset a portion of their electricity use via generation.

Source: Eversource

 

How does the rate work?

• From November through April, eligible homes pay a lower delivery (distribution + transmission) rate per kWh than standard customers.
• During May through October, the standard residential rate applies (i.e., no special discount) for heat-pump customers.
• Eversource gives a hypothetical breakdown:
  • Standard distribution rate: $0.06264 per kWh VS Heat Pump distribution rate: $0.01946 per kWh
  • Standard transmission rate: $0.04545 per kWh VS Heat Pump transmission rate: $0.01412 per kWh
  • Combined savings in the example: ~$124 off the winter bill (≈23%) for a 1,670 kWh/month user.
• The exact discounted rates may change annually (Eversource notes the seasonal heat-pump rate will be adjusted on January 1).

Source: Eversource
 

How to apply

Here’s how homeowners can sign up:

• Online: Submit proof of purchase or installation of the heat pump (receipt/invoice), a photo of the outdoor unit showing model/serial number, or your Mass Save rebate confirmation.
• By mail: Send required documents (account number, contact info, installation proof, optional photo) to “Abode c/o Eversource Energy, 555 Virginia Road, Concord MA 01742.”
• If uncertain whether your system qualifies as a “heat pump,” Eversource offers a no-cost virtual heat-pump identification consultation.

 

Why this matters for your home (and business)

At CBCR, we’re always looking for ways clients can reduce operational costs and maximize efficiency, and this rate is one of those often‐overlooked pieces of the puzzle. Especially for homes (or small‐office spaces) switching to heat-pump systems, the impact on the electric bill can be meaningful.

Consider:

• Installing a heat pump not only helps upgrade your HVAC system (better efficiency, possible comfort improvement) but also plants you for this lower delivery rate.
• Earlier adopters might not have taken advantage of this rate yet, so if your installation predates 2019 or you didn’t take the Mass Save rebate, you could still apply.
• For business owners who own property or manage multiple rental units with heat pumps, this becomes a quantifiable savings line in your cost-sheet.
• If you’re evaluating the ROI of a heat-pump installation, this rate is another factor in the equation (not just upfront cost, maintenance, or equipment life).
   

Next Steps

1. Verify that you have a heat pump (not just electric resistance).
2. Check your installation date and whether you got a Mass Save rebate (after Jan 1 2019 may qualify for automatic enrollment).
3. Log into your Eversource account and find your electric delivery rate to compare whether you’re already on the heat-pump rate.
4. If not yet enrolled, gather your documentation and apply (online is fastest).
5. Track your winter bills this year and compare to prior winters, the one-time shift to this rate can provide a clear savings headline for your business/client conversations.

Want to learn more? Visit Eversource’s official Heat Pump Rate page for full terms, rate tables & how to apply: https://www.eversource.com/residential/account-billing/manage-bill/about-your-bill/rates-tariffs/heat-pump-rate