On Friday, Massachusetts utility regulators greenlit a new three-year budget for the state’s energy efficiency initiative, Mass Save. This budget sees a reduction of $500 million from the initial proposal of $5 billion.
The Department of Public Utilities (DPU) emphasized that despite this cut, the program will still provide significant savings and benefits to customers. This includes support for energy-efficient upgrades in homes and businesses, such as heating systems and appliances, along with affordable weatherizing options.
Since its inception, Mass Save has helped residents decrease their annual electricity usage by 18 million megawatt-hours over the past 15 years. However, the budget cut means that overall funding for residential programs will drop by 25% for gas and 15% for electric services, according to the regulators.
Even with this decrease, the new budget for 2025-2027 is still higher than the previous budget of $3.95 billion for the 2022-2024 period.
The reduction in funding will differ based on utility providers, as they need to collaborate on adjusting the overall Mass Save budget. Each utility manages its own funding and collectively proposes these amounts.
Key members involved in the Mass Save program include Eversource Energy, Berkshire Gas, Cape Light Compact, Liberty Utilities, National Grid, and Unitil.
Eversource praised the DPU for acknowledging customer concerns regarding affordability, calling this adjustment a crucial step toward providing long-term relief to consumers while making the energy transition smoother and more affordable in Massachusetts.
The state has set a goal of achieving net-zero emissions by 2050. However, advocates for energy efficiency warn that this budget cut could lead to a loss of $1.5 billion in potential benefits and savings.
Critics, such as the Conservation Law Foundation, argue that reducing energy efficiency programs during a time of rising utility costs is counterproductive, highlighting concerns over affordability for Massachusetts residents.