Compare Massachusetts Electricity Prices
Residential and business customers in Massachusetts pay some of the highest retail electricity rates compared to the national average. However, they also have the option to compare providers in the energy market and find the best Massachusetts electricity prices. Whether you are interested in fixed, variable, prepaid plans, or renewable energy, there are likely available competitive rates in your area that fit your needs.
Compare Electricity Rates in Massachusetts
Massachusetts Energy Market Data
Last updated August, 2022
- Massachusetts uses a relatively small amount of energy (8th lowest usage in the US),
- Massachusetts residents pay the highest average retail price for power in the continental United States.
- The current average residential rate in Massachusetts is 22.32¢/kWh, which is the 3rd highest average rate in the United State according to EIA.
- The typical household electricity bill in Massachusetts is $132.18, which is more than the national average of $110.33. This is due to the fact that EIA found that Massachusetts has the eighth-lowest monthly power usage overall.
- Massachusetts has few natural resources to draw from so the state has to import its electricity from elsewhere.
- Massachusetts energy companies have been steadily raising default electricity rates to pay for new power plants and energy infrastructure. In 2020, Unitil received approval to increase rates by $2.7 million, lifting the average monthly residential bill by $8.
- Massachusetts off-peak periods are Monday through Friday from 9 p.m. to 8 a.m., as well as Saturday, Sunday, and holidays all day.
- In 2021, Massachusetts got 60% of its power from natural gas and none from coal, making it a state without a coal-fired plant. Almost all of the remainder of Massachusetts’ electricity came from nuclear and renewable resources.
- When you switch energy companies, your local utility will continue to deliver electricity safely to your door through the state power lines. The only thing that will change will be the supply portion of your energy bill – which will now have the name of your new electricity supplier and a better supply rate!
|Average Massachusetts Residential Energy Rate||$0.1974 per kWh|
|Average Massachusetts Commercial Energy Rate||$0.1621 per kWh|
|% of Renewable Energy in Massachusetts||15.6%|
|Massachusetts Deregulation Status (Yes/Partial/No)||YES|
|Main Source of State Electricity - Massachusetts||Natural Gas|
|Average Massachusetts Household Energy Use - Month||583 kWh|
|Average Massachusetts Household Energy Use - Year||~7,000 kWh|
|Average Massachusetts Monthly Electric Bill||$201 per Month|
Energy Deregulation in Massachusetts
In March 2005, the Massachusetts Department of Public Utilities approved plans to allow customers the option to buy their electricity supply from companies other than their local utility company. As residents of a state where retail energy is deregulated, Massachusetts customers are able to switch electricity suppliers and choose the best energy provider with a better offer. If you don’t yet belong to the 500,000 residents and business owners who switched, now is as good a time as any. Massachusetts electricity prices have been steadily rising since 2014.
Energy Switch Massachusetts
To help customers take advantage of cheaper energy, an official state energy choice program called Energy Switch Massachusetts was created. In it, residents can compare Massachusetts retail electricity rates in their zip code, get more information about the deregulated energy market and licensed energy providers and if they find a good deal, sign up for a new Massachusetts electricity rates plan.
Like Energy Switch Massachusetts, ElectricRate also allows you to find a lower electricity supply rate. However, apart from being able to compare available Massachusetts energy rates, residents can access additional benefits.
|Switch to your new service in a few clicks - When you enter your zip code on ElectricRate, you will not only see all rates, with the cheapest deals displayed on the top of the list, but you can also sign up immediately with just a few clicks.|
|All the information you need in one place - As customers, we all like excellent customer service and extras. That's why at ElectricRate, we carefully review all major suppliers and compile information about customer support hours, ratings, and extra benefits that they provide, such as attractive referral programs, complementary goods, and value-add services.|
|Get the support you need: Our team at ElectricRate is ready to provide ongoing support to customers, including helping you choose the plan that best fits your lifestyle, notifying you when your plan is about to expire and any additional support you might need. All you need to do is give us a call at 1-888-307-9636 or email [email protected]|
Energy Plans in Massachusetts
Energy plans are like shoes. One size does not fit all. Navigating through complex information about power rates can be confusing and can ultimately deter you from shopping for a better deal. Below is all you need to know about the different energy products that power companies offer to Massachusetts residents:
|Plan||Description||What's Good?||What's Bad?|
|Time of Use Tariffs||You pay a different rate based on the time of day (higher rates during peak hours and lower rates during non-peak hours)|| |
|Renewable Energy Credits (RECs)||By purchasing 1 REC, you purchase the environmental benefits of 1MWh of renewable energy generation.|| |
|Green / Renewable Energy Plans|| |
|Prepaid Plans||This plan lets you pre-purchase power for your home at a set price, like a prepaid cell phone.|| |
|Variable Rate Plans||Your per-unit gas and electricity costs can vary at the discretion of your supplier.||
|Fixed Rate Plans||Your unit price for gas and electricity will remain the same for the duration of the plan.||
Is Switching Providers Worth It?
To change Massachusetts electricity and natural gas suppliers, you only need your zip code, a most recent energy bill, and about 5 minutes of your time. The process is as follows:
- Enter your zip code on our website
- Find your monthly energy usage in your most recent bill
- Compare rates from other energy providers for a similar energy usage
- Sign up for a new electricity plan and start saving money
The change will be automatic and you won’t have to do anything else.
How To Choose The Right Plan For Your Home
Switching to a new energy supplier might seem complicated, but we promise you – it isn’t! Follow these simple steps to find competitive rates in Massachusetts:
Analyze Your Current Costs
Look at the electric supply charges on your utility bill, which will be expressed in cents per kilowatt-hour. This number is called your Price to Compare and your primary objective is to find a plan with a lower number.
Review Your Current Contract and Plan
Switching suppliers in Massachusetts can be costly if you are the type of person that tends to skim through the fine print in your contract. For example, if you are currently on a fixed-rate electricity plan, there might a penalty from your energy provider for switching out too early – check if you are able to switch without a fee.
Compare Energy Plans
Use our online search and shopping tool to see available electric rates for your zip code. Find the electricity provider with the lowest rate and if you like what you see, you can sign up right there and then! A pro tip – We all like good customer service. That’s why at ElectricRate.com, we only promote rates from New York’s reputable power providers, based on their prices, electricity plans, customer service, and extras! Before you sign up, read our review of your new retail electric provider to avoid surprises.
Alternative Energy Solutions in Massachusetts
Massachusetts has a long history of promoting renewable energy and alternative energy technologies – it has surpassed the 2021 renewable generating capacity targets and its residents can benefit from various incentive programs, such as the Solar Massachusetts Renewable Target (SMART) Program to benefit from clean energy. What other sources are used?
|Solar energy - By March 2019, Massachusetts installed 2,254 megawatts of solar PV capacity, ranking fifth nationally. Massachusetts residents can take advantage of various options to install solar - from federal tax credits to a fixed, low-interest loan to install a PV panel. |
|Wind energy - The state has 129 wind projects, with 113 megawatts of wind-powered generating capacity, however, the legislature set a target to raise this number to 3,200 megawatts by 2035. Some electric suppliers offer 100% green energy plans sourced fully from the state-produced wind farms.|
Cow energy - Interestingly enough, Massachusetts pioneers an energy generation process, that creates electricity through an anaerobic digester fed to cows with food scraps and manure. Next time you are in Massachusetts, stop by Rutland’s Jordan Dairy Farm, where owners burn cows’ manure to produce electricity.
Energy Companies in Massachusetts
Eversource, National Grid, and Unitil are the three major electric utilities in Massachusetts.
NSTAR and WMECo, consolidated under Eversource Energy in 2015, turning the giant utility provider into a Fortune 500 company. Unitili is a smaller, interstate provider, crossing the states of Massachusetts, Maine, and New Hampshire. If one of these companies is your utility provider, you can compare their standard tariff (also known as Price to Compare) to other Massachusetts electricity rates available in your zip code.
Formerly called NSTAR, Eversource Energy is New England’s largest utility company, delivering energy to 1 million residents including Boston and 81 surrounding communities such as Barnstable, Plymouth, New Bedford, and Edgartown. The utility company’s current default residential rate is 10.66¢/ kWh.
Eversource Western Massachusetts Electric Co. supplies power to over 210,000 customers in the Western part of the state, such as the counties of Berkshire, Franklin, Hampden, and Hampshire. The utility company’s current default residential rate is 13.73¢/ kWh.
National Grid (MECO)
National Grid serves over 1.2 million electricity customers throughout Massachusetts including Brockton, Worchester, Franklin, Marlborough, Southbridge, Newbury Port, North Adams, and others. The utility company’s current default residential rate is 14.11¢/ kWh.
Unitil (Fitchburg Gas & Electric)
Unitil is an interstate local utility company, serving approximately 107,100 electric customers and 85,600 natural gas customers in Maine, Massachusetts, and New Hampshire. The utility company’s current default residential rate is 16.49¢/ kWh.
Understanding Your Massachusetts Electric Bill
There are two main charges on your Massachusetts electricity bills – supply charges and a transmission & delivery service (TDS) charge. Understanding what they both mean will give you more control over your spending on electric utilities and can even inspire you to find lower Massachusetts electric prices.
Utility Delivery Charges
This portion of the bill helps to cover the cost of delivering electricity from the generation site over the high and low-voltage lines safely to your door, which is the responsibility of your energy company. The utility delivery rate is fixed – it’s driven by your electric distribution company and you can’t shop for a better one in the deregulated energy market.
Energy Supply Charges
The supply charges of your energy bill cover the cost of generating electricity. This could, for example, be the cost of operating a nuclear power plant or the cost of setting up a solar or wind farm. In states with energy deregulation, such as Massachusetts, you can choose among competitive suppliers who offer a better price per kilowatt-hour, than your current one.
Factors that Affect Electricity Rates
Regardless of which energy plans you use, your electricity service and bill depend on a variety of factors that are out of your control. A working network and a reliable electricity service are a result of a lot of competition, which keeps everything in chec and ensures a reliable energy delivery by old and new energy providers working in your ZIP code area. Let’s consider factors that affect electricity rates:
The electricity rates you pay per kilowatt-hour depend mostly on the fuel prices at any particular moment. This is true for both residential customers and business customers (commercial customers). Fuels, such as coal, natural gas or biomass are burned in power plants, as this is the best way (and the fastest) to release energy stored in them and use it to generate electricity.
However, certain events, such as scarcity, or global political instability can make some categories of fuels to become sparse, driving up the prices of all other fuels. For this reason, it is never a good idea to apply for variable-rate plans, as these energy plans in Massachusetts can result in way higher energy bills than usual. Instead, you should explore other energy options, such as fixed-rate energy plans, as they give you more stability with your rates. Always compare Massachusetts electricity options on the Electricrate website, before signing a contract with any energy suppliers.
Power Plant Prices
Energy is produced in power plants, whatever their kind may be. These plants work (preferably day and night) to ensure that all your electricity needs are met. Power plants cost a lot of money to build, run and maintain and all these factors become included in the electricity rates you pay at the end of the day.
Not all power plants cost the same, however. Nuclear energy power plants, for example, are notoriously expensive to build. However, considering that an entire region can enjoy low electric rates, they are a viable option for energy generation. Solar energy power plants, on the other hand, cost way less, and have almost null maintenance costs, but the issue of intermittent power supply arises. In most service areas, however, electricity supply comes from mixed sources, a direct way to combat issues with energy delivery.
Local Transmission and Distribution Systems
The national grid, or the local transmission and distribution system, is a complex system of poles, power lines, and transformer stations that all need heavy maintenance and investments into modernization to ensure a reliable power supply and electrical safety in case any poles or lines fall down. This work is usually done by the utility company servicing your ZIP code area and charges can be seen on your utility bill – usually under the heading of ‘Energy Transmission Charges’ or ‘Utility Charges’.
This money is used to modernize the grid, ensure a more responsible grid operation, higher safety standards, and much more. Besides, the money is also used to prevent or fix any outages and different types of problems with energy delivery that a country and its grids may face. If you have additional questions, you can always contact your utility company and see where the money you pay goes.
Even in deregulated energy markets, where you have the power of energy choice (a.k.a. you can choose which company will provide power to your home), your local government regulates how utility companies handle energy and the terms under which you can switch to a new supplier. When choosing the right energy plan for your home, you should know that the government regulates the minimum and maximum price per kWh that energy can be sold at. This guarantees a fair market and a lot of competitive suppliers, with little chances for monopoly and unreasonably high electricity charges.
Your local weather conditions can also affect the energy rate you pay to your energy supplier. During particularly cold or hot weather, the need for heating or AC increases. This, in turn, means higher energy rates, as the demands can exceed the supply. Likewise, during weather extremes that may happen in your area, the power plants may have issues with fuel delivery and efficiency.
In the case of renewable energy, you should know that the weather can also influence how your energy rate changes during the day. A period of bright sunny days can mean a lot of solar power is produced during the day, but it can also mean less hydropower, especially as there is less rain. Likewise, windy days mean a lot of wind power in the national grid, but days with no wind reduce the energy that is produced by wind turbines and drive energy prices up.
Energy Providers vs Utility Companies
Energy deregulation in Massachusetts means that the experience of shopping for a lower electricity supply rate has changed. You have the power to decide who will deliver power to your home, but to do so, you should compare electricity rates and different types of energy plans. To get an accurate idea, if you shop for electricity, you should compare it to shopping in a supermarket: there are different products, intended to meet different demands.
Furthermore, deregulated markets also have two types of electricity companies: energy providers (energy suppliers) and utility companies. Your electricity supplier is the company you sign the contract with. It is the company that purchases electricity in the wholesale market at more affordable electricity rates. This power is meant for both businesses and home use (residential customers). The utility company, on the other hand, is the company in charge of actually delivering power to your home and ensuring that the grid is in good enough condition to handle this job
Massachusetts Energy FAQs
Below are answers to some of the burning questions you might have about Massachusetts electricity rates:
Would switching providers be worth it?
In general, the average electricity rates in deregulated energy states (where you can shop for an energy supplier) are lower than in regulated states (where only electric utilities are allowed to supply your power) thanks to increased competition. However, switching energy companies in Massachusetts will only be worth it if your new Price to Compare is lower than your current electric rate. Also, be aware that if you are locked in a fixed-rate term plan, there might be a cancellation fee if you decide to switch early.
How can I get my electricity bill cheaper?
One sure way to lower your utility costs is to reduce your energy usage. Some appliances in your home, such as air conditioners are energy guzzlers! There are many benefits to conserving energy – potential savings, improved quality of life, and even a hike in your property price. But don’t end there. In Massachusetts, all residents have the right to sign up with a new provider and find the best electric rate. You can compare available rates by entering your zip code on ElectricRate – we review all major suppliers in your state, whether you are after a fixed-rate plan, a variable rate, or alternative energy credits.
What is the cost of electricity in Massachusetts?
According to the U.S. Energy Information Administration (EIA). the average retail Massachusetts electric price is 18.61 ¢/kWh. The reason for such high prices is that Massachusetts must import electricity from other states, due to the scarce natural resources, adding to the overall cost. However, Massachusetts residents looking to lower their bills can choose an alternative energy plan from a retail energy supplier by entering their zip code.
Who has the best electricity rates in Massachusetts?
What is the current cost of electricity and does the number change?
The state utility companies are often changing their default electricity rates. In 2020, nearly all U.S. utilities filed rate hike proposals to be approved by their respective state regulatory commissions. If you choose a competitive Electric Service Company (ESCO), you can avoid these rate increases by locking in a cheaper rate.
Why is electricity so expensive in Massachusetts?
Massachusetts has a significant infrastructure deficit that will have to be addressed in the future. Massachusetts’ electricity usage accounts for more than 46 percent of New England’s overall demand.
If you are moving to a new address in Massachusetts, you should visit the Electricrate.com site. Once there, please enter your ZIP code to see which energy providers work in your area and select the providers you like based on the factors you deem important. This way, you will always have an affordable Massachusetts energy plan and will be able to save both energy and money.