Massachusetts approves deeper electricity discounts for heat pump users

Massachusetts residents using electric heat pumps are set to receive further reductions in electricity costs. The Massachusetts Department of Public Utilities has approved updated plans from National Grid and Unitil to deepen winter rate discounts, effective November 1.

This decision builds upon a previous policy that made Massachusetts the first state to require major utilities to offer discounted seasonal electricity prices for homes with heat pumps. That earlier initiative reportedly saved residents more than $37 million last winter. Under the new updates, the climate think tank Switchbox estimates that customers could see an additional $9.8 million in savings.

Research from Switchbox suggests that a majority of households in the state could reduce costs by transitioning from natural gas heating to electric heat pumps. The move has prompted discussions regarding whether neighboring Northeastern states will implement similar incentives to encourage energy efficiency.