City of Newton’s Residential Energy Use FAQs

The biggest reason for the increases in electric and gas bills is the region’s dependence on natural gas. New England relies on natural gas for about 50 percent of its electricity generation, while about 50 percent of households in Massachusetts depend on natural gas for heating. This reliance on natural gas results in higher energy bills for a number of reasons:

• Natural gas prices vary with international gas market disturbance and extreme weather events, both of which result in gas price volatility.
• Since the war in Ukraine, higher gas prices in Europe have incentivized New England gas producers to ship gas to Europe, increasing gas prices domestically.
• The competition for gas for electricity and heating drives up winter energy bills.

Unfortunately, none of these are short-term issues. However, Governor Healey just announced a $180 million initiative to reduce residential electric bills by 25 percent and natural gas bills by 10 percent during February and March of this year. She has also filed legislation aimed at reducing utility bills.

There are other reasons contributing to recent bill increases. The winter of 2024-2025 was one of the coldest in recent years (the first in more than a decade with below-normal temperatures during the entire season). Further, New England’s energy infrastructure is aging, resulting generally in costly expenditures and making it particularly vulnerable to storms.

There are three places to start.

The first is with a Mass Save home energy assessment. This service is free. (Actually, you’re already paying for it through a charge on your electricity bill.) A Home Performance Contractor will come to your house and advise you about insulation and weatherization. Whether you’re thinking about heat pumps or solar panels, this is always the right first step. Without adequate insulation and weatherization, you’re just pouring energy (and money) out the window. Adequate insulation will also make your house less drafty and more comfortable.

A second step is to take advantage of Newton’s Energy Coach program. This service is also free. Energy coaches are City staff and volunteer experts. You can schedule a Zoom or phone consultation about energy-related issues—e.g., heat pumps, Eversource heat pump rates, solar power, electric vehicles, and incentive programs—or start by reviewing the online Q&As.

Third, plan for when your current heating and cooling systems, water heater, clothes dryer, stove, and car need replacement. Don’t wait until your gas furnace dies in the middle of winter! Starting with Newton’s Energy Coach program, consider heat pumps, an induction stove, and an electric vehicle before your current equipment reaches the end of its useful life.

Heat pumps are energy-efficient electric heating, ventilation, and air conditioning (HVAC) systems that provide both heating and cooling by transferring heat rather than generating it. They move heat from outside to inside during winter, and act in reverse to provide air conditioning in summer. Because heat pumps move heat rather than generating it, they are highly efficient. The main types of heat pump are air-source (which use outside air and are the most common), ground-source (geothermal), and water-source.

There are three reasons, the first being that heat pumps are an electric technology, and electricity is cleaner than the fossil fuels used for heating, be it heating oil, propane, or natural gas. Yes, it’s true that the electricity on the New England electric grid is generated partly by fossil fuels, but only partly. The generation resources on the New England grid are about half natural gas and the rest relatively low-emitting resources, i.e., a quarter nuclear, and the remainder renewables. Moreover, in light of the New England states’ environmental policies and the financial edge that renewable resources have relative to fossil fuels, the grid will become cleaner during the coming years. This same reasoning applies to other electric appliances like induction stoves and to electric vehicles.

The second reason is that heat pumps are often 200-400 percent efficient, as compared to the best gas system, which is typically 80-97 percent efficient. Heat pumps are so efficient because they move existing heat from the surrounding air or from the ground rather than generating it. Heat pumps are most efficient at moderate temperatures, but modern cold climate heat pumps operate at temperatures well below zero degrees Fahrenheit. Heat pumps also improve indoor air quality by eliminating the on-site combustion of fossil fuels.

The third reason is often overlooked, and it has to do with the age of Newton’s and of much of New England’s natural gas distribution infrastructure. Here and elsewhere in the region, the pipes that bring gas to your house or business are old and leaking. Leaky pipes impose costs: costs to repair or replace them, costs attributable to the lost gas, and costs in terms of health and safety. By transitioning to electricity—not only for heating with heat pumps but also for induction cooking and electric vehicles—we avoid this leaky fossil fuel distribution infrastructure, moving toward a safer and more efficient energy future.

Bad news: if your electricity goes out, you’ll lose heat even if you rely on a conventional heating system. Most heating systems rely on electricity for fans, ignition, and safety controls, meaning that you lose heat during a power outage even if you have a natural gas or fuel oil heating system. The best solution to this problem is adequate insulation, which will extend the length of time that a building stays warm.

To ensure your home remains powered even during a grid failure, you can also consider combining solar with battery storage. (See question regarding this topic below.)

First, if you have relatively new and completely operational fossil fuel-operated appliances, don’t discard them to buy electric appliances. That swap would have both financial and environmental costs. But plan for switching to electric appliances for when your fossil fuel systems are on their last legs.

Heat pumps are significantly better for the environment, but whether they will save you money depends on a few factors. The first cost consideration is the initial purchase price. Although heat pumps are expensive, there are State subsidies that will defray the cost. The State’s Mass Save program offers rebates up to $8500 for whole home heat pumps installed in 2026, as well as 0% interest financing. These State programs remain even though federal tax credits for electrification expired at the end of 2025.

Second, whether heat pumps will save you money on an operational basis depends on how you are currently heating your home. If you’re heating with fuel oil, propane, or electric resistance devices (baseboard heating, space heaters, or electric furnaces), then yes, heat pumps will save you money. Also, Eversource has recently adopted a heat pump electric rate, applicable during the winter (November 1 to April 30), which will increase your savings even more. Eversource estimates that the heat pump rate will decrease your total electric bill by about 23 percent.

If you’re heating with natural gas, heat pumps will likely cost you more for heating than your current system. However, the heat pump rate will partially defray that cost increase. Also, when considering cost, remember that heat pumps provide both heating and cooling.

So…. The only thing we can say for sure about these operational cost issues is that heat pumps will save you money as compared to using fuel oil, propane, or electric resistance heat. If you switch from natural gas heat to heat pumps, the cost impact will depend on whether you are on the heat pump rate and whether or not you rely primarily on your heat pumps (and not just, for example, using a heat pump in just a single room) as opposed to natural gas for some or all of your heating needs.

And we can’t say often enough: maximize your savings by making sure that your home is well insulated!

The State’s home energy assistance program (HEAP) is a free resource to help eligible households pay a portion of winter heating bills. You can apply online or in-person through a network of local service providers, such as ABCD here in Newton. Find more information on ABCD’s website here.

ABCD offers additional heating and energy services to income eligible residents, including utility bill advocacy, energy conservation, and weatherization assistance. Learn more about these services and connect with ABCD here.

The Mass Save income eligible program also offers free insulation, air sealing, heating and cooling equipment upgrades, and new efficient appliances. Enhanced residential incentives are also available; you can learn more about this program here.

If you’ve installed a heat pump, even if your home’s heating is not all-electric, you can qualify for the heat pump rate. This new rate option is available for residential electric customers in MA (not applicable for businesses). If you received a Mass Save heat pump rebate after January. 1, 2019, you should have been automatically enrolled in the heat pump rate; if not, you can apply via this link. More details are here, and you can review FAQs about the heat pump rate here.

To give a precise answer to this question, we would have to provide savings information for each month separately, because the period during which the heat pump rate applies is not exactly coextensive with the period during which the new Eversource Basic Service rate applies. Making this calculation more complicated, the Basic Service rate changes every six months. Suffice it to say that electric customers can take advantage of both Newton Power Choice and the heat pump rate at the same time, and that doing so will result in substantial savings.

Eversource is an electric utility. Eversource distributes electricity to all Newton electricity users. It also purchases the electricity to provide to distribution customers who choose to buy electricity from Eversource. The electricity supply that Eversource purchases is known as Basic Service.

Although Eversource must deliver your electricity (it wouldn’t make sense to have multiple companies stringing their own electricity distribution lines), you can actually purchase electricity from sources other than Eversource, i.e., from Newton Power Choice or from a competitive supplier. But it’s always Eversource delivering your electricity. Regardless of where you purchase electricity, Eversource is your electric utility. Your electric bill covers both delivery and the electric supply and continues to come from Eversource, and if you lose power in a storm, you should still call Eversource.

Newton Power Choice is a municipal aggregation program, enabled by Massachusetts law. Municipalities can purchase power on the market (just as Eversource does for Basic Service) for local electric customers. But Eversource still delivers that electricity. Under the State’s municipal aggregation law, customers on Basic Service receive notice of their local aggregation program and, if they do not opt out, are transferred automatically from Basic Service to the aggregation. This mechanism is why municipal aggregation is known as an opt-out program. Any city or town that adopts a municipal aggregation program is required by State law to make it opt out.

If you haven’t signed up with a competitive electricity supplier and, therefore, were on Eversource Basic Service in the past, you’re automatically on Newton Power Choice. If you use about 600 kWh of electricity per month (the median residential use in Newton), your savings—based on the Newton Power Choice contract that went into effect in January 2026 and on the new Eversource electric rate effective from February 1 to July 31 (not including savings attributable to the new heat pump rate)—will be about $10 per month during that period as compared to Basic Service.

The Newton Power Choice rate is fixed for two years, but the Eversource Basic Service rate changes every six months, so long-term savings on Newton Power Choice relative to Basic Service cannot be guaranteed. However, on average over the approximately eight years since the City implemented Newton Power Choice, electricity customers have saved money.

Note that past Newton Power Choice contracts have supported the development of renewable power by providing electricity customers the opportunity to purchase Renewable Energy Credits (RECs). The current Newton Power Choice contract does not provide that opportunity, because changes in federal policy mean that purchasing RECs in New England will no longer support renewables, at least for the time being. See this memo for an explanation of why that is the case.

The City is exploring other opportunities to use Newton Power Choice to support renewables. We will inform electricity customers if we are able to develop any of those opportunities.

If you never signed up for a competitive electricity supplier, you were on Eversource Basic Service until Newton Power Choice started in 2017. Under State law, all Basic Service customers receive a letter from their municipality regarding aggregation programs like Newton Power Choice. This letter compares the program’s pricing to Basic Service rates and informs customers that they will be automatically enrolled in the aggregation program unless they choose to opt out.

Check your most recent Eversource electricity bill. If you are enrolled in Newton Power Choice, your electricity supplier will be listed as “Direct Energy Newton Power Choice.” (See the “Supplier” listed on page 2 of your bill.)

If you’ve signed up for a competitive supplier, you can go to newtonpowerchoice.com and click the “enroll” button on the upper righthand corner of the screen. Unfortunately, the City does not have a list of electricity customers who have signed up for a competitive supplier and, therefore, has no way to notify such customers directly about Newton Power Choice.

But beware! Some competitive supply contracts charge hefty cancellation fees if you seek to unenroll, so check your contract to make sure that you will not incur a substantial fee. By contrast, you can opt out of Newton Power Choice at any time without paying any fee.

Ideally, yes. Installing solar panels is one of the most important things you can do to address climate change. But whether you should install solar panels depends on a number of factors. As we’ve said relative to other issues, you’ll first want to make sure that your home is well insulated. If it’s not, you’ll be installing a solar system that is larger than you need.

Other preliminary issues to resolve are:

• Whether your home is shaded by trees or other buildings;
• Whether your roof has a deck or skylights;
• How soon your roof will need to be replaced;
• The orientation of your roof—south-facing is optimal, but solar is also feasible on west- and east-facing roofs.

All of that said, if you’re like most people, your primary concern is likely about cost.

If that’s the case, your initial choice is whether to lease or buy solar panels. The short story in that regard is that leasing avoids high upfront costs but reduces long-term savings. If you can manage it, there are benefits to owning your panels, e.g., you get the State tax credits and subsidies and retain the benefits of selling any excess power you generate to the electric grid. On the other hand, ownership means that you will be responsible for maintenance and repairs (which should be minimal). If you lease panels, it means that a third party owns and maintains the system, and you pay a monthly fee for the power that’s generated.

Regardless of whether you lease or buy them, installing solar panels provides some protection from rising electric utility rates.

The main reason for installing a battery with your solar panels is as a backup system when the electric grid goes down. Solar panels alone do not serve this function.

If you’re installing solar panels, you should discuss the issue of battery backup, as well as the cost of batteries and related considerations, with your solar installer. As mentioned, this is an issue you can also raise with a Newton Energy Coach.

Yes! Community solar is a great way to support solar power and to save money. If your home lacks a sunny or spacious roof—or if you rent your apartment or own a condo—community solar may be an ideal alternative for supporting clean energy. The Massachusetts Clean Energy Center offers a solar project finder and guide to help you get started.

With a wide array of heat pump and solar installers operating in our region, determining

where to begin can be overwhelming. One of the most-repeated pieces of advice you’ll

hear from an Energy Coach is to always get at least three quotes before making a decision.

Comparing three quotes helps you ensure competitive pricing and consider different

technical approaches. Beyond the numbers, leverage your local network: ask neighbors

about their firsthand experiences and read online reviews.

You can also explore this spreadsheet with responses provided by local heat pump installers in response to the City’s Request for Information, and this list of solar installers who have worked in Newton over the past four years. Both of these resources and more information can be found on Newton’s Clean Energy Starts at Home webpage.