Some good news: Starting in November 2025, Harvard residents will gain access to a new, lower electricity rate, making switching to heat pumps more affordable. This move is a critical piece of the state’s strategy to lead on climate action, regardless of the direction of federal policy.
A cheaper, cleaner winter is coming
For National Grid customers, state regulators at the Department of Public Utilities (DPU) have ordered the utility to implement a new seasonal electricity rate for all residential customers who use heat pumps. This special rate will directly lower the per-kilowatt-hour cost of electricity during the primary heating months of November through April. Currently, the projected reduction is 4.2 cents per kilowatt-hour, or approximately 13% of your entire bill. This will lower the distribution portion of your bill and will not negatively affect customers using fossil fuels.
Gov. Healey’s administration projects that the new rate could save the average heat pump user hundreds of dollars over a single winter season. And this initiative is going statewide. The DPU has directed Eversource and Unitil, the state’s other major utilities, to create similar programs.
Massachusetts regulators rejected a proposal by National Grid that would have given a discount for any high electricity use, whether from an efficient heat pump or an old, inefficient appliance. Instead, by targeting the discount specifically to heat pumps, the state is rewarding the adoption of a technology that’s crucial for meeting its climate goals.
Overcoming the cost barrier to clean heat
For years, the biggest hurdle for many homeowners considering a switch to heat pumps has been cost. This new rate structure is designed to help. Previously, for the roughly 50% of Massachusetts households using natural gas, switching to a heat pump could have meant paying more for heat annually. The new seasonal rate makes heat pumps a financially competitive option compared to fossil fuels. The savings are more dramatic for those currently using older electric resistance heating. For example, a home switching from electric resistance to heat pumps could save more than $500 a month.
This new rate is an important piece of the support system Massachusetts has built to help residents make the switch to clean heating. It works together with the state’s Mass Save program, which offers significant help with the following:
- High up-front costs
Mass Save provides rebates of up to $10,000 for whole-home heat pump systems and up to $16,000 for income-qualified households. This can be combined with a federal tax credit for even greater savings, at least for now, although the federal credit is likely to be eliminated soon if the One Big Beautiful Bill Act passes. - Financing.
For the remaining cost, the 0% interest HEAT Loan allows homeowners to finance up to $25,000 for heat pump projects over a seven-year period. - Home readiness
To ensure the new system works perfectly, Mass Save begins with a no-cost home energy assessment and covers 75% to 100% of the cost of recommended weatherization upgrades, such as insulation and air sealing.
State leadership in an uncertain time
This heat pump strategy provides one clear, stable, and encouraging path forward for Massachusetts residents. You’ll need to sign up with National Grid in the fall to take advantage of the new rates, so check with them in a couple of months for details.
Massachusetts has legally binding goals to achieve net zero emissions by 2050, and electrifying how we heat our homes is a critical part of that plan. By creating durable, long-term policies, such as the heat pump rate, and backing them with funding through Mass Save, the state is encouraging homeowners to make the switch. More importantly, it signals that Massachusetts is a reliable place to invest in a green economy.
Rich Marcello is a member of the Climate Initiative Committee. In writing his latest novel, “The Means of Keeping,” he spent several years researching the climate crisis.
