Shawn Kelly and Sarah Steinberg

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Rate Design Paired with Efficiency Unlocks Savings for Electrifying Homes

Posted by Shawn Kelly and Sarah Steinberg on May 15, 2025 10:00:00 AM

Rate Design Paired with Efficiency Unlocks Savings for Electrifying Homes

In recent years, Massachusetts has outlined – and consistently reinforced – one of the clearest and most unambiguous visions for the future of clean buildings and clean heat: electrification. This includes the Department of Public Utilities’ (DPU’s) landmark order establishing regulatory principles and framework to wind down investments in the Commonwealth’s natural gas pipeline distribution system.  

United's latest report with Demand Side Analytics identifies ways in which the Commonwealth could support electrification without abandoning its energy conservation and long-term system cost containment imperatives. What we discovered: A time-of-use (TOU) electric rate, paired with enhanced energy efficiency efforts, can significantly reduce residential energy bills for electrified homes while mitigating rate increases for all homes.

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Topics: State Policy, Massachusetts, Building Electrification, Heat Pumps

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