Heat pumps continue to be the most climate friendly and 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 actual cost savings for a customer who switches to a heat pump will depend on their previous heating source and current energy rates.
Customers switching from electric resistance heating will typically see significant savings, since heat pumps use approximately one-third to half of the electricity required by electric resistance systems.
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 natural 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. With the new rate, customers who previously heated with natural gas should have comparable or slightly reduced total energy costs.
Electric utilities have previously offered reduced rates to customers who heated with electric resistance, and gas utilities offer different rates for homes that heat with gas versus those who 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 lowers 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. All customers, regardless of rate type, will continue to pay a flat $10 monthly customer charge.
Approved Rate Adjustments and Estimated Bill Impacts
The table below provides a summary of the estimated monthly residential bill impacts between November 1 and December 31, 2025 for a heat pump customer using an average of 1670 kWh per month during the winter season. Please note that the only rates impacted by the heat pump rate are the distribution and transmission rates. Supply rates are not impacted.
On average, a typical customer switching from natural gas may see about a 2% decrease in their overall bill compared to their previous combined electric and gas costs.
Who is eligible?
The heat pump rate is available to any residential customer who uses a heat pump for space heating 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. The heat pump rate will be adjusted in January 2026.
How do I sign up?
Automatic enrollment: If you received a Mass Save® rebate for a heat pump installed after January 1, 2019, you will be automatically enrolled on the new heat pump rate prior to November 1, 2025. Eversource will notify you before enrollment begins.
Manual enrollment: If you didn’t receive a rebate from the Sponsors of Mass Save or if you installed your heat pump prior to January 1, 2019, you need to confirm your eligibility to enroll in the heat pump rate by providing additional information. Visit eversource.com/heat-pump-rate to learn more.
Is there a heat pump rate for customers that need assistance with electric bills?
Yes, customers who are currently on the R-2 residential assistance rate and have a heat pump, are eligible for the R-2 heat pump rate, which applies the same discount available on the R-2 electric rate.
How can I confirm that I have been enrolled in the heat pump rate?
After receiving confirmation from Eversource that you will be enrolled in the heat pump rate, you can also verify enrollment on your next Eversource electric bill. The heat pump rate will appear starting with the first billing cycle after November 1, 2025. For example, if your billing cycle begins on November 15, the lower rate will apply to electric usage from November 15 – December 14, and you will see it reflected on the bill issued in December. It will continue to appear on each subsequent bill through April.
On the second page of your bill, next to “Rate,” you should see R1HP or R2HP (“HP” indicates the heat pump rate). See example below (the information circled in red would show R1HP or R2HP)
How can I switch to heat pumps?
Customers interested in installing a heat pump for heating and cooling can visit the Residential Heating and Cooling page on the Compact’s website to learn more about heat pumps and available incentives.
