Unitil, a provider of natural gas and electricity in New England, will reduce its electric distribution rate for Massachusetts residential customers using heat pumps to heat their home during the upcoming winter heating season. The new rate will be in effect Nov. 1 through April 30.
Unitil was the first public utility in Massachusetts to launch a seasonal heat pump rate in the Commonwealth, with the rate becoming available last spring. This fall will mark the first full heating season Unitil customers will be able to take advantage of the program, which grants qualifying customers a reduced distribution rate for the winter months.
Unitil proposed this new rate to help ensure heating costs remain affordable for customers seeking to take advantage of carbon-free heating options. These high-efficiency systems use electricity to transfer heat from the outside air or ground into a home, effectively reversing the process an air conditioner uses to cool in the summertime.
“This new rate provides meaningful savings to customers who choose to use heat pumps,” said Unitil’s External Affairs Director Alec O’Meara. “Nearly 420 customers are already benefiting from the program, and we expect more households will see reduced winter energy costs.”
The reduced distribution rate is available to households that use heat pumps, whether as their primary heating system or alongside other heating options. The supply portion of the bill, which covers the electricity itself, will not change. “For customers on this rate, the discount applies to the entire electric load for the month, not just the heat pump usage,” O’Meara explained.
The financial savings are significant. Homeowners who sign up for the program will see about a 64% reduction in their electricity distribution rate during the winter heating months, or a reduction of over six cents per kilowatt hour. During peak heating periods, this may result in a reduction of $100 or more per month for customers.
To qualify for the new rate, customers must enroll in the program and are encouraged to sign up immediately to take full advantage of the discounted winter rate. More information is available at unitil.com/ma-heat-pump-rate.
