What's my current annual heating cost in MA?

Typical MA single-family homes spend $2,500–$4,000 per year on oil ($3.80/gal), $1,500–$2,400 on natural gas ($1.75/therm), or $2,800–$4,500 on propane. Electric resistance is the most expensive at $4,000+ in homes that have it as primary heat.

How much does a heat pump actually cost to run?

A cold-climate heat pump in a typical 2,000 sqft MA home burns roughly 11,300 kWh/year for heating. On the standard residential electric rate that is about $3,600/year on Eversource ($0.32/kWh) and $3,400 on National Grid ($0.30/kWh). On the Massachusetts Seasonal Heat Pump Rate — a reduced winter distribution rate that applies to all household usage from November 1 through April 30 — the same home runs about $3,200/year on Eversource, $2,700 on National Grid, and $2,500 on Unitil, because the winter discount is roughly $0.04, $0.06, and $0.09/kWh respectively. Better-insulated homes land 20%+ below those figures. MLP residents pay materially less either way ($0.18/kWh average), but MLPs do not run the program.

What is the Heat Pump Rate and am I already on it?

The Massachusetts Seasonal Heat Pump Rate took effect November 1, 2025 and is offered by Eversource, National Grid, and Unitil. It is a reduced electric distribution rate (Eversource also reduces transmission) that applies to all of your household electricity from November 1 through April 30; May through October you pay the standard residential rate. It is seasonal, not hour-by-hour — the discount lands on every kWh inside the window, so there is nothing to gain from rescheduling laundry or EV charging. Most households do not have to do anything: if you took a Mass Save heat pump rebate on that electric account for a system installed after January 1, 2019, your sponsor enrolls you automatically and notifies you. You do have to apply if you took National Grid's $250/ton Basic rebate, if the install came through a new-construction or renovation program, or if Mass Save was not involved at all — any space-heating heat pump qualifies with proof of purchase, a contractor invoice, a rebate confirmation, or a photo of the outdoor unit showing model and serial. Electric resistance heat, cooling-only heat pumps, and standalone heat pump water heaters do not qualify. Because the discount sits on the delivery side of the bill, municipal-aggregation and third-party-supply customers still get it.

Why might the calculator show a heat pump costing more than my current fuel?

Two scenarios. First: if you compare a heat pump at the standard residential rate ($0.32/kWh Eversource) against oil at $3.80/gal, the cost-per-MMBtu of heat is roughly comparable — neither is dramatically cheaper. The savings story for oil-to-heat-pump conversion in MA depends on (a) actually being on the Seasonal Heat Pump Rate (which the toggle in this calculator models), and (b) the rebate-funded install cost being recovered over the equipment's 15–20 year lifespan. Second: gas at $1.75/therm with a 95% condensing furnace is genuinely the cheapest-per-MMBtu fuel option in MA today; for gas-furnace homes, the heat-pump conversion case is primarily about electrification, future-proofing, and access to AC, not pure operating-cost savings.

Why does the heat pump's COP matter?

COP (Coefficient of Performance) is the ratio of heat delivered to electricity consumed. A COP of 2.6 means 2.6 BTU of heat per BTU of electricity input. Current HPQPL-listed cold-climate heat pumps in MA monitored installations averaged seasonal COP 2.55–2.75 in NEEP field data (the 2024–2025 cohort) — we use 2.6 as the centered estimate. Top-tier Mitsubishi Hyper-Heat and Daikin LV installs trend higher; older HSPF2-minimum equipment trends lower. Geothermal averages 4.5 year-round.

What about the install cost on top of the operating cost?

This calculator shows operating cost only. For the full cost-after-rebate-after-financing picture including install cost + Mass Save rebate + HEAT Loan monthly payment, use the main rebate calculator. The two work together: operating-cost savings repay the install cost over the equipment's lifetime.

Heat Pump Operating Cost Calculator

By MassHVAC Editorial Team Reviewed by MassHVAC Editorial Team Last updated 2026-09-19

Annual heating cost

Current fuel vs heat pump

Home size (sqft) 2,000

Current heating fuel Your Mass Save sponsor Insulation quality Household is on the seasonal Heat Pump Rate Eversource, National Grid and Unitil all run a reduced winter distribution rate that applies to every kWh from November 1 through April 30 (heating-season effective $0.28, $0.24 and $0.22/kWh vs $0.30–0.32 standard). If you took a Mass Save heat pump rebate on a post-2019 install, your sponsor enrolled you automatically — uncheck only if your account is still on the standard residential rate. Cape Light Compact and municipal light plants do not offer it.

What this calculator uses for its math

Annual heating load: ~50 MMBtu per 1,000 sqft in IECC 5A MA, adjusted for insulation (poor +35%, good −22%).
Current system efficiency: oil boiler 83%, gas furnace 85% (95%+ for condensing), propane 85%, electric resistance 100%.
Heat pump COP: 2.6 cold-climate seasonal average — centered estimate from NEEP-monitored 2024–2025 cohort of HPQPL-listed equipment installed in Massachusetts. Top-tier Mitsubishi Hyper-Heat / Daikin LV typically run 2.8–2.9; basic-tier HPQPL minimums closer to 2.4.
Fuel prices: 2026 MA average — oil $3.80/gal, natural gas $1.75/therm, propane $3.20/gal.
Standard electricity rates by sponsor: Eversource $0.32/kWh, National Grid $0.30, Unitil $0.31, Cape Light Compact $0.28, MLP avg $0.18. Bundled supply + delivery, 2026-Q1 published tariffs.
Heating-season rate on the seasonal Heat Pump Rate: Eversource $0.28/kWh, National Grid $0.24, Unitil $0.22. Each is that sponsor's standard rate less its winter distribution discount: Unitil publishes $0.09/kWh directly; National Grid's ~$0.06 and Eversource's ~$0.04 are derived from their own published monthly dollar savings at National Grid's 1,670 kWh/month reference. Cape Light Compact ($0.28) and municipal light plants ($0.18) do not run the program, so their figure is simply the standard rate. Applied when the Heat Pump Rate toggle is on (default). The discount window is November 1 through April 30, which is effectively the whole MA heating season — so applying it to annual heating kWh is the right treatment.

Why the Heat Pump Rate matters for the comparison

At Massachusetts's standard residential rates, a cold-climate heat pump at COP 2.6 costs roughly $36/MMBtu of delivered heat on Eversource and $34/MMBtu on National Grid. Oil at $3.80/gal in an 83% efficient boiler is roughly $33/MMBtu. By that math a heat pump is comparable to oil rather than dramatically cheaper — which is what surprised some early MA homeowners who switched.

On the seasonal Heat Pump Rate the same heat pump runs about $32/MMBtu on Eversource, $27/MMBtu on National Grid, and $25/MMBtu on Unitil. How much that moves the comparison depends heavily on your sponsor. Unitil publishes the deepest discount and lands clearly below oil; National Grid is comfortably below; Eversource's discount is the smallest and leaves a heat pump roughly at parity with oil on operating cost alone.

The sponsors publish their own dollar outcomes rather than a percentage: Eversource reports about $430 over the winter season, roughly $72/month; National Grid reports $70–$141/month November–April on R-1; $20–$96/month on the R-2 income-eligible rate; Unitil reports $82–$166/month November–April; $49–$99/month for income-eligible customers.

You most likely do not have to sign up. If you took a Mass Save heat pump rebate on that electric account for a system installed after January 1, 2019, Eversource, National Grid, and Unitil enroll you automatically and notify you. The exceptions that need an application are National Grid's $250/ton Basic rebate recipients, new-construction and renovation-program installs, and anyone whose heat pump went in without Mass Save. There is no cost either way, and because the discount lands on the delivery side of the bill, municipal-aggregation and third-party-supply customers get it too.

Why MLP residents see lower heat pump bills

Massachusetts municipal light plant (MLP) electricity rates run roughly $0.18/kWh vs $0.30–$0.32/kWh for investor-owned utility customers. The math: a heat pump consuming 7,000 kWh/year costs about $1,260 on MLP rates vs $2,100 on Eversource. Same equipment, same home — $840/year less to operate, every year, for the equipment's full lifetime.

The catch is that MLP customers are not eligible for Mass Save rebates (they don't pay into the Energy Efficiency Charge that funds the program). Their alternative path: the MLP Zero-Interest Energy Efficiency Loan (0% APR up to $25,000) and any MLP-specific rebate program their local utility offers.

Operating cost FAQ

What's my current annual heating cost in MA?: Typical MA single-family homes spend $2,500–$4,000 per year on oil ($3.80/gal), $1,500–$2,400 on natural gas ($1.75/therm), or $2,800–$4,500 on propane. Electric resistance is the most expensive at $4,000+ in homes that have it as primary heat.
How much does a heat pump actually cost to run?: A cold-climate heat pump in a typical 2,000 sqft MA home burns roughly 11,300 kWh/year for heating. On the standard residential electric rate that is about $3,600/year on Eversource ($0.32/kWh) and $3,400 on National Grid ($0.30/kWh). On the Massachusetts Seasonal Heat Pump Rate — a reduced winter distribution rate that applies to all household usage from November 1 through April 30 — the same home runs about $3,200/year on Eversource, $2,700 on National Grid, and $2,500 on Unitil, because the winter discount is roughly $0.04, $0.06, and $0.09/kWh respectively. Better-insulated homes land 20%+ below those figures. MLP residents pay materially less either way ($0.18/kWh average), but MLPs do not run the program.
What is the Heat Pump Rate and am I already on it?: The Massachusetts Seasonal Heat Pump Rate took effect November 1, 2025 and is offered by Eversource, National Grid, and Unitil. It is a reduced electric distribution rate (Eversource also reduces transmission) that applies to all of your household electricity from November 1 through April 30; May through October you pay the standard residential rate. It is seasonal, not hour-by-hour — the discount lands on every kWh inside the window, so there is nothing to gain from rescheduling laundry or EV charging. Most households do not have to do anything: if you took a Mass Save heat pump rebate on that electric account for a system installed after January 1, 2019, your sponsor enrolls you automatically and notifies you. You do have to apply if you took National Grid's $250/ton Basic rebate, if the install came through a new-construction or renovation program, or if Mass Save was not involved at all — any space-heating heat pump qualifies with proof of purchase, a contractor invoice, a rebate confirmation, or a photo of the outdoor unit showing model and serial. Electric resistance heat, cooling-only heat pumps, and standalone heat pump water heaters do not qualify. Because the discount sits on the delivery side of the bill, municipal-aggregation and third-party-supply customers still get it.
Why might the calculator show a heat pump costing more than my current fuel?: Two scenarios. First: if you compare a heat pump at the standard residential rate ($0.32/kWh Eversource) against oil at $3.80/gal, the cost-per-MMBtu of heat is roughly comparable — neither is dramatically cheaper. The savings story for oil-to-heat-pump conversion in MA depends on (a) actually being on the Seasonal Heat Pump Rate (which the toggle in this calculator models), and (b) the rebate-funded install cost being recovered over the equipment's 15–20 year lifespan. Second: gas at $1.75/therm with a 95% condensing furnace is genuinely the cheapest-per-MMBtu fuel option in MA today; for gas-furnace homes, the heat-pump conversion case is primarily about electrification, future-proofing, and access to AC, not pure operating-cost savings.
Why does the heat pump's COP matter?: COP (Coefficient of Performance) is the ratio of heat delivered to electricity consumed. A COP of 2.6 means 2.6 BTU of heat per BTU of electricity input. Current HPQPL-listed cold-climate heat pumps in MA monitored installations averaged seasonal COP 2.55–2.75 in NEEP field data (the 2024–2025 cohort) — we use 2.6 as the centered estimate. Top-tier Mitsubishi Hyper-Heat and Daikin LV installs trend higher; older HSPF2-minimum equipment trends lower. Geothermal averages 4.5 year-round.
What about the install cost on top of the operating cost?: This calculator shows operating cost only. For the full cost-after-rebate-after-financing picture including install cost + Mass Save rebate + HEAT Loan monthly payment, use the main rebate calculator. The two work together: operating-cost savings repay the install cost over the equipment's lifetime.

Related guides

Massachusetts Heat Pump Cost & Rebate CalculatorEstimate your installed heat pump cost net of Mass Save rebates, IRA HEAR, and 20-year fuel savings. Includes monthly HEAT Loan payment. Updated for 2026 program rates.

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