Massachusetts’ New Three-Year Energy Efficiency Plan

By Julia Damiano

On January 31, 2022, the Massachusetts Department of Public Utilities approved a revised and reinvigorated Three-Year Energy Efficiency Plan for the Commonwealth. The dense, almost 400-page order allocates nearly $4 billion in efficiency and demand reduction resources and paves the road for numerous programs set to run from 2022 through the end of 2024. This includes billions of dollars in rebates, interest-free loans, free efficiency upgrades, and other incentives to make homes and businesses across the state more efficient and resilient.


Core themes of the new Plan are efficiency, electrification, equity, and workforce development. Compared to the previous three-year plan, this new Plan has less emphasis on lighting, combined Heat & Power (CHP), and fossil fuel-based heating systems. Highlights from the Plan include significant funding for electric heat pump incentives for residential, income-eligible and commercial and industrial (C&I) customers. This includes $800 million for building electrification and weatherization measures and a commitment to install approximately 54,000 residential heat pumps, including 6,650 income-eligible projects, and the conversion of 34.1 million square feet in the C&I sector to heat pumps. For C&I Customers, the Plan increases investments and technical support across all available participation pathways — midstream, downstream, prescriptive, and custom. For the 2022-2024 term, the Plan will expand upon technical support efforts by developing custom express calculator tools, providing a comprehensive savings assessment tool to identify opportunities in small businesses and more insight into the impact measures have on GHG emissions. Through these and similar efforts, increased energy savings and reduced program costs are anticipated.


The 2022-2024 Three-Year Plan was developed through a collaborative effort with stakeholders and government officials, resulting in a proposal that was unanimously supported by the MA Energy Efficiency Advisory Council (EEAC). The EEAC, which is chaired by the Commissioner of the Department of Energy Resources (DOER), is backed by broad stakeholder perspectives and includes representatives from the Attorney General’s Office, the Massachusetts Department of Environmental Protection (MassDEP), Department of Housing and Community Development (DHCD), municipalities across the commonwealth, environmental advocates, low-income advocates, energy efficiency experts, energy efficiency small businesses, and representatives for residential, commercial, non-profit, and manufacturing customers. Throughout the development of the Plan, PowerOptions worked with the EEAC to ensure the proposed plan’s focus on residential customers didn’t dilute funding for our Members’ needs. Our advocacy resulted in millions of dollars in increased funding for commercial energy users plus significant funding for carbon reduction measures, including electrification.


Unlike previous versions of the Plan, the new version centers on reducing the state’s carbon footprint by encouraging people to switch from fossil fuel-based heating systems to electric heat or renewable sources. This Plan aligns with the Commonwealth’s climate goals and places a priority on electric heat pump incentives for residential, income-eligible, and C&I customers. Differing from previous versions of the Plan, the 2022-2024 rewrite will now allow gas customers who were previously ineligible to participate in heat-pump incentive programs

Additionally, the 2022-2024 Three-Year Energy Efficiency Plan has a specific focus on equity, targeting residents in EJ communities who have been historically underserved. This is demonstrated by increased investments and benefits to income-eligible renters and landlords, moderate-income residents, language-isolated customers, EJ municipalities and small businesses.  The Plan also establishes expanded workforce development efforts to cultivate a diverse and highly skilled workforce.

Highlights of the Plan include:

  • Total budget of $3.94 billion
    • A significant portion in electric-heat-pump incentives for residential, income-eligible, and commercial and industrial customers
  • $800 million for building electrification and weatherization measures
    • A commitment of 54,000 residential heat pumps, including 6,650 income-eligible projects, and converting 34.1 million square feet in the C&I sector to heat pumps.
    • Instant incentives at time of purchase for heat-pump water heaters up to $1000/80-gallon unit and $2200/120-gallon unit effective April 1, 2022.
  • More than $600 million in targeted equity initiatives across the state
  • An investment of $587 million for dedicated income-eligible customer offerings.
    • $130 million to expand on language and translation services for English isolated populations.
    • More than $100 million in investments to serve moderate-income customers, language-isolated customers, small businesses, renters, and landlords.
    • Rebates of up to 100 percent of the cost of weatherization and enhanced incentives for heating systems for moderate-income customers who qualify.
    • Nearly $50 million is earmarked for workforce development
  • Expansion of technical support and funding available through the participation pathway programs
    • Custom express calculator tools, including a comprehensive savings-assessment tool to identify opportunities in small businesses.

The new Plan also calls for a new Small Equipment Electrification program. Although details of this offering are still being worked out, landscaping equipment and forklifts will qualify for electrification incentives to help replace commonly used engines that are powered by gasoline, diesel, and propane fuel.


All Massachusetts businesses and residents can take advantage of the Plan. Customers of Berkshire Gas, Cape Light Compact, Eversource, Liberty Utilities, National Grid, or Until are eligible for savings under the Plan, although the exact level of support is based on certain criteria.

To qualify, equipment must be purchased between January 1, 2022, and December 31, 2024, and installed by a licensed contractor.  Low-income residents will reap the most comprehensive benefits defined in the Plan: Those who earn less than 60 percent of the state median income will be eligible for a 100 percent rebate of the cost of efficiency-boosting home measures and appliances. All moderate-income customers, those who earn 60-80 percent of the state median income, qualify for the state’s Income Eligible Program. And residents who earn more than 80 percent of the state’s median will still qualify for some savings through the Plan’s custom pathway program.

Additionally, renters will qualify for Mass Save to cover 100 percent of costs associated with air-sealing and insulation (assuming you have your landlord’s approval, of course). The Program Administrators will provide more detail in the coming months. 

 PowerOptions works with Members on efficiency projects from the initial free audit through to project completion. Contact us at for information or to get started today.


The State’s current climate law mandates that greenhouse emissions be cut in half by 2030 and reduced to net-zero by 2050. Aiming to wean one million businesses and homes from fossil fuels by 2030, the Commonwealth must undergo a massive undertaking to curb costs and barriers to entry to the electric and renewable market.

The new Three-Year Plan sets incentives that will be critical to building momentum as the Commonwealth seeks to meet its aggressive climate goals. To reach these goals, the electric energy and gas efficiency plans will need to deliver 845,000 tons of emissions reduction toward the Commonwealth’s 2030 greenhouse gas limit. The good news is that the approved plan is estimated to eliminate 848,713 metric tons of carbon dioxide by 2030 and will provide an estimated $9 billion in benefits to the Commonwealth over the next three years.

Please contact the PowerOptions team for any questions on eligibility and how you can get the most from the plan.


To learn more about the new Three-Year Plan and how it can benefit your organization, join us on May 5th at 10am, as we host representatives from Eversource and National Grid to review in greater detail the incentives and opportunities available to you.

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