Unitil, a provider of natural gas and electricity to customers in New England, has officially launched a new seasonal electric rate for Massachusetts residential customers with heat pumps.
Unitil proposed the new rate, the first of its kind in Massachusetts, to find ways to keep energy affordable for customers while also supporting the Commonwealth’s carbon-free heating goals. Heat pumps, which use electricity to draw heat energy directly out of the environment to heat homes, are an important alternative heating solution used by many to reduce carbon emissions. Approximately 400 Unitil customers had expressed interest in the rate via a waitlist form prior to launch.
“We have numerous rebate programs to help offset some of the upfront cost for installation of heat pumps, but heat pumps do lead to higher overall electric usage compared to those using other fuels for heat. We wanted a rate which would make operating these units more affordable,” said Unitil External Affairs Director Alec O’Meara.
The reduced distribution rate is available to households that use heat pumps exclusively or even partially to heat their homes. Energy supply costs, and portions of the bill that support state programs and initiatives, remain unchanged for customers.
The savings are significant. Homeowners who sign up for the program will see about a 64 percent lower distribution rate, which equates to a reduction of approximately six cents per kilowatt hour. The seasonal rate will remain in place through April 30th this year and will then be available for customers from November through April going forward.
To receive the new rate, customers must enroll in the program. Information can be found at unitil.com/ma-heat-pump-rate.
