Scaling Heat Pump Rates to Make Electrification Affordable
Switchbox's Electric Rate Reform Program
Electrification must equal affordability.
Households on gas usually see higher energy bills after heat pumps.
energy bills
+11%
How bills would change for natural gas heated homes after switching to heat pumps
This is happening in state after state.
Cheap gas isn't the whole story...
High operating costs threaten to stall electrification.
The Problem
Utilities Are Overcharging
Heat Pumps
energy bills
2.8x2.2x
overpayment!$2,805
The Solution
Heat Pump Rates
How bills would change for natural gas heated homes after switching to heat pumps
If we stop overcharging heat pump customers, what's the impact on other customers?
In NY, their electric bills would
go up by $2 a month, on average.
HP Rates in MA
The Win
2 utilities will increase discounts
140,000 households on HP rate will
save a total of $13 million next winter.
$50 million
A additional homes
can now save by switching.
quarter million
80% of homes could save, up from 55%
80%
55%
The Lever
Utility Rate Cases
The Lever
How It Works
Identify proceedings
Partner with advocates
Analyze data
Write testimony
Propose rates
"Utilities are overcharging heat pump customers by an average of $855 per year."
Overcharging by $900 a year
HP rate = 14 ¢/kWh → 8 ¢ / kWh
Only of homes can save
20%
of homes can save
90%
136 utilities in cold areas + CA
70% of all residential customers
The Strategy
Intervene Everywhere
In the next 3 years, over half of
these utilities will have rate cases.
55 million customers will be in play.
PUCs and utilities will start to offer HP rates voluntarily.
If 136 utilities offered HP rates,
$1.4 billion in yearly savings.
web switch.box
bsky @switch.box
mail jpv@switch.box
What's the impact on low-to-moderate income customers of installing heat pumps under heat pump rates?
Energy burdens for LMI customers
Heat Pump Rates Deck
By Juan-Pablo Velez
