If you heat your home with a heat pump in Massachusetts, the state just handed you another break on your winter electricity bill. State regulators have approved even lower seasonal Massachusetts heat pump rates for National Grid and Unitil customers, effective November 1, 2026 – and if you are already enrolled, the discount applies to your whole bill, not just the heat pump. This is the second round of cuts: last winter, Massachusetts became the first state to require major utilities to offer these rates, and more than 65,000 households saved over $37 million in total, according to Canary Media. Here is what changed, what it will cost you, and how to make sure you get it.

What changed for this winter

In July, the Massachusetts Department of Public Utilities approved new proposals from National Grid and Unitil that cut their seasonal heat pump rates below last year’s already discounted prices. The changes kick in November 1 and run through the winter season. The key move is a cut to transmission charges – the part of your bill that pays to carry high-voltage power over long distances.

• National Grid: transmission charges drop from $0.055 per kilowatt-hour to $0.02 per kWh.
• Unitil: transmission charges drop from $0.042 per kWh to $0.015 per kWh.
• Eversource: already cut both distribution and transmission last winter, which is what regulators ordered the other two utilities to copy.

Climate think tank Switchbox calculates that National Grid and Unitil customers who already made the switch stand to save an additional $9.8 million this winter compared to last year. With the new rates, Switchbox finds that more than half of Massachusetts households would save money by switching from natural gas heat to a heat pump.

Why the state keeps cutting these rates

The logic is about fairness, not charity. New England’s grid still peaks in summer, when air conditioners strain the system. In winter, demand usually reaches no more than 80 percent of the highest summer levels, so plenty of grid capacity sits unused. Heat pump owners heat during those off-peak months, yet they were paying delivery charges built for peak costs.

Supporters argue the cuts should not hurt utility revenues either, since the lower per-kWh price is offset by the extra electricity heat pump homes use. And the policy goal is plain: Massachusetts plans to reach net-zero emissions by 2050, and heat pumps are central to that plan. The problem was never the equipment – rebates and low-interest loans already help with installation costs. The problem was the operating cost in a state with some of the country’s highest electricity prices.

“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.

What last winter’s rates actually saved

The first round of rates was not theoretical. For the 2025-26 winter season, the lower distribution and transmission rates translated into about $368 in savings per heat pump customer, according to the Green Energy Consumers Alliance. The 2025-26 winter heat pump rates looked like this:

• Eversource: 2.052 cents/kWh distribution plus 1.492 cents/kWh transmission – roughly 7.0 cents/kWh in total savings.
• National Grid: 2.44 cents/kWh – about 4.15 cents/kWh in savings.
• Unitil: 3.633 cents/kWh – about 6.0 cents/kWh in savings.

One detail many owners miss: the seasonal rate applies to your entire electricity bill from November 1 through April 30, not only the heat pump. Your electric water heater, clothes dryer, dishwasher, refrigerator, and EV charging all get the cheaper rate during those months. If you want a sense of what heat pumps can handle year-round, we looked at how well they cool a 2,160 square foot home earlier this month.

How to get the lower Massachusetts heat pump rates

Enrollment in the Massachusetts heat pump rates is not automatic for everyone, so do not assume you are in. Here is the drill:

1. Check your utility. The program covers Massachusetts customers of National Grid, Unitil, and Eversource.
2. Contact your utility by November 1 to enroll in the seasonal rate if you are not already signed up.
3. Mass Save installations enroll automatically. If your heat pump was installed through the Mass Save program, you should already be on the rate – but verify on your bill.
4. Stack the incentives. On top of the rate cut, Mass Save rebates remain available in 2026: $2,650 per ton for whole-home systems up to $8,500 per home, and $1,125 per ton for partial or dual-fuel setups, per Kearney HVAC’s 2026 breakdown.

What if you don’t live in Massachusetts

Massachusetts remains the only state that requires major utilities to offer heat pump rates, but the idea is spreading. Xcel Energy has established an electric heating rate in Minnesota, Central Maine Power recently concluded a pilot, and Switchbox is advocating for similar programs in New York and Rhode Island. The forecast from the original policy debate – “as Massachusetts cuts heat pump bills again, other Northeastern states face new pressure” – is already playing out in utility commission dockets.

If you live elsewhere, the practical move is to call your utility and ask about electrification or electric heating rates. Many utilities have seasonal or time-of-use pilots that are never advertised well. And if your state has not acted, the Massachusetts numbers are now the best evidence advocates have: lower rates, no revenue hit, and the majority of homes saving money.

FAQ

When do the new Massachusetts heat pump rates take effect?

November 1, 2026. The seasonal rate applies to your electricity use from November 1 through April 30 each winter.

Do I have to sign up for the lower rate?

Customers with heat pumps generally need to contact their utility by November 1 to enroll. Households whose heat pumps were installed through Mass Save are automatically enrolled, but it is worth confirming on your bill.

Does the discount apply to my whole electric bill or just the heat pump?

Your whole bill. Every kilowatt-hour your household uses during the November-to-April window – including water heating, laundry, dishwashers, refrigerators, and EV charging – is billed at the lower seasonal rate.

I don’t live in Massachusetts. Can I get a heat pump rate?

Not the same program – Massachusetts is currently the only state requiring its major utilities to offer heat pump rates. But similar options exist elsewhere, such as Xcel Energy’s electric heating rate in Minnesota, and pilots are under discussion in Maine, New York, and Rhode Island. Ask your utility what electrification rates it offers.

The takeaway is simple: if you are a Massachusetts homeowner with a heat pump, confirm your enrollment before November 1 and let the discount do its work. If you are still on oil or gas, this winter is the cheapest it has ever been to run a heat pump in New England – and the savings math may finally favor making the switch.