More than 65,000 Massachusetts households with heat pumps will receive bigger breaks on their winter electricity bills.
State regulators have approved deeper seasonal discounts that will take effect Nov. 1. The move could make one of the most effective home energy upgrades more appealing for families looking to cut utility costs and protect themselves from rising energy prices.
Here's what to know
In July, Massachusetts regulators approved updated winter pricing for National Grid and Unitil, Canary Media reported. The change builds on a first-in-the-nation state policy requiring major utilities to offer lower seasonal electricity rates to households that use heat pumps.
Last winter, those discounted rates produced more than $37 million in total savings. However, this year's even more discounted rates could save ratepayers even more money.
National Grid and Unitil customers who already have heat pumps could save an additional $9.8 million under the updated rates, according to climate think tank Switchbox.
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Massachusetts is still the only state that requires major utilities to provide heat pump rates, but similar ideas are gaining interest around the country, per Canary Media.
More background
Unlike other HVAC systems, heat pumps can both heat and cool a home efficiently. This makes them a financially and environmentally sound alternative to furnaces that run on nonrenewable fuels like oil and gas.
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Despite these advantages, and even with rebates and low-interest loans reducing installation costs, many households have still viewed the cost of running electric heat as a hurdle.
The Massachusetts program is designed to ease cost concerns and encourage heat pump use by locking in lower rates for heat-pump households.
Switchbox found that with the revised winter pricing, most Massachusetts households could save money by moving from natural gas heat to a heat pump.
"Heat pump rates are important for customer fairness, but they're also really important to unlock the full greenhouse-gas reduction opportunities from heat pumps," said Alex Lopez, senior manager for regulatory policy at electrification nonprofit Rewiring America, per Canary Media.
What's being done?
Under the newly approved winter rates, Canary Media reported, National Grid will lower transmission charges for eligible households from $0.055 per kilowatt-hour to $0.02 per kWh. Unitil will cut its transmission rate from $0.042 per kWh to $0.015 per kWh.
If you are ready to upgrade to a heat-pump HVAC but not ready to spend up front, Palmetto Comfort Plans include $0-down options that can lower your heating and cooling costs by up to 50%, along with 12 years of free maintenance.
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Where can I learn more?
These articles look at heat pump savings in cold climates and other ways to lower home heating bills.
• A Vermont homeowner saw no-brainer savings through a freezing winter with a heat pump.
• In Maine, heat pumps boom despite frigid temperatures and oil industry pushback.
• In Minneapolis, homeowners say a lot of savings come with heat pumps in brutal winters.
• Researchers say they can curb Americans' high energy costs and cut heating bills.
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