Report Details Cost Savings of Heat Pump Rates for Mass. Consumers

Strong winter discounts on electricity delivery rates are needed to more fairly charge Massachusetts homes with heat pumps for their share of grid costs, according to a new report commissioned by a coalition of environmental groups.

In December, an interagency working group recommended that the DPU require the utilities to establish more aggressive winter heat pump discounts. (See Mass. Electricity Rates Working Group Issues Recommendations.) 

Under this updated discount, houses with heat pumps would pay roughly the same delivery costs as those heated by gas during the heating season. Supply costs would not be affected by the discount, and heat pumps would still pay for their full supply costs throughout the year. 

Kyle Murray, director of state program implementation at the Acadia Center, emphasized that heat pump rates do not represent a “handout to heat pump owners.” 

“Even though heat pump owners are using more energy than their non-heat pump counterparts, they’re not actually causing more stress on the system,” Murray said. “Heat pump rates just simply represent fairness in ratemaking.” 

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