Heat Pumps continue to be the most efficient way to heat a home. These systems move heat (a process that can be 300-400% efficient) using the refrigeration cycle instead of using combustion to create heat (a process that typically tops out at 98% efficiency). Although these systems are the most efficient way to heat, the cost savings a customer experiences will vary based on how they previously heated the home and current energy rates.
Customers with electric resistance heating will typically see significant savings since heat pumps use approximately a third to a half of the electricity to operate. Customers who previously heated with oil and propane will also likely save money due to the high costs of those fuels. However, for natural gas customers who have converted, the economics have not typically been in their favor when it comes to the operating costs. This is largely due to the relatively low cost of natural gas compared to electricity.
To ensure this barrier does not hinder people from making the decision to convert from gas to heat pumps, many utilities have proposed heat pump electricity rates. Most recently, on July 29, 2025, the Department of Public Utilities (DPU) approved Eversource’s proposed seasonal heat pump rate.
Electric utilities have previously offered reduced rates to customers who heat with electric resistance, and gas utilities offer different rates for homes that heat with gas versus those that strictly use gas for cooking or hot water. These new rates bring rate design in line with the modern home heating landscape and make home decarbonization cost-competitive for customers.
How does it work?
The heat pump rate will reduce the per-kilowatt-hour distribution and transmission charges from November through April, which is defined as the “winter period.” This means customers with heat pumps should expect to see bill savings compared to the standard residential delivery rate due to the per-kilowatt-hour charge reduction.
Who is eligible?
The heat pump rate is available to any residential customer who uses a heat pump to heat all or part of their home, including residential customers in the electric utilities’ low-income discount program. Since the heat pump rate is on the delivery side of the electric bill, not the supply side, customers on the Compact’s electricity supply (provided by NextEra Energy Services) are eligible for the heat pump rate.
When does the rate go into effect?
The heat pump rate will be effective as of November 1, 2025.
How do I sign up?
Enrollment logistics are still being finalized following the DPU order, but customers on the Cape and Vineyard should communicate to their electric utility, Eversource, that they wish to enroll in the seasonal heat pump rate. Eversource’s customer service number is: 800-592-2000
Customers who installed their heat pumps through Mass Save (Cape Light Compact) after January 1, 2022, should be automatically enrolled in the heat pump rate if they switched from oil, propane, or electric resistance. The Compact recommends that customers call Eversource to confirm their enrollment after receiving their December electric bill. Customers who switched from gas heat to heat pumps will not be automatically enrolled and must call Eversource to enroll.
How can I confirm that I have been enrolled in the rate after calling Eversource?
Once you have confirmed with Eversource that you will be enrolled in the heat pump rate, you can confirm for yourself by looking at your next Eversource electric bill. On the second page of your bill, next to “Rate,” you should see R1HP or R2HP. The “HP” stands for heat pump and means you have been enrolled in the heat pump rate. This will be implemented on your December 2025 bill. See example below (the information circled in red would show R1HP or R2HP).
