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Massachusetts residents face some of the highest energy costs in the country, but a robust network of state and federal programs exists to protect households from financial instability. These initiatives range from direct bill payments to complete debt forgiveness and free energy efficiency upgrades. The system is designed to reduce the "energy burden" for low-to-moderate-income families to a manageable percentage of their income.
Navigating these benefits requires understanding a complex mix of regulatory orders and eligibility formulas. This content breaks down the available support, including the new tiered discount rates and debt forgiveness options, ensuring you have the knowledge to access every dollar of relief available to you.
The foundation of most utility relief in Massachusetts is the Low Income Home Energy Assistance Program, often called "Fuel Assistance." Qualifying for this program typically unlocks a wider ecosystem of benefits, including lower rates and weatherization services.
Eligibility is generally based on your household's gross annual income relative to the State Median Income (SMI). For the fiscal year 2026 (covering the winter of 2025-2026), the income limit is set at 60% of the estimated State Median Income.
Maximum Gross Annual Income Limits (FY 2026):
If your income falls below these thresholds, you should apply immediately through your local Community Action Agency. Even if you earn slightly more, other programs like the Good Neighbor Energy Fund may still provide support.
LIHEAP provides a seasonal benefit to help pay for your primary heating source, whether that is electricity, natural gas, oil, propane, or wood. The amount of money you receive depends on your income tier, housing type, and fuel source.
The state prioritizes households with the highest energy burden. Consequently, homeowners and renters who pay for "deliverable fuels" (like oil or propane) generally receive higher benefit caps than those with utility-provided heat, as they face upfront bulk payment requirements.
Maximum Benefit Levels for FY 2025:
High Energy Cost Supplement (HECS): Households with exceptionally high heating costs may qualify for an additional supplement. If your historical heating costs exceed specific thresholds (e.g., over $1,865 for oil), you could receive an extra $120 to $200 added to your benefit.
A major shift in Massachusetts utility policy has transformed how discounts are applied to monthly bills. Previously, most customers received a flat percentage discount. Now, major utilities like National Grid have implemented a "tiered" system that provides deeper relief to households with the lowest incomes.
This structure ties the discount percentage directly to the Federal Poverty Level (FPL), rather than just the State Median Income. This ensures that the families struggling the most receive the most significant reduction in their distribution and supply charges.
National Grid Tiered Discounts (Effective August 2025):
Other Utility Discount Rates:
Enrollment is often automatic if you receive benefits like SNAP, SSI, or MassHealth, as utilities conduct regular computer matches with state agencies. However, if you qualify based on income but do not receive these benefits, you must apply manually by submitting your Fuel Assistance approval letter.
If you have fallen behind on your bills, discount rates alone may not be enough. Massachusetts law mandates that investor-owned utilities offer Arrearage Management Programs (AMPs). These programs do not just rearrange your debt; they forgive it.
Participants typically receive a "budget" payment amount based on their average usage. For every on-time payment made, the utility erases a portion of the past-due balance.
Eversource "New Start" Program:
National Grid AMP:
Berkshire Gas RAMP:
Reducing energy consumption is the most effective way to lower bills permanently. The Mass Save Income Eligible Services (IES) program offers comprehensive upgrades at no cost to renters and homeowners who qualify for Fuel Assistance.
Unlike standard Mass Save programs, the income-eligible pathway covers 100% of the costs for approved work. This addresses the "capital barrier" that often prevents low-income families from investing in efficiency.
Available No-Cost Upgrades:
Heat Pump Rebates and Rates: The state is aggressively promoting the switch to electric heat pumps. Income-eligible households can receive enhanced incentives that often cover the full cost of installation. Additionally, utilities now offer specialized Heat Pump Rates that lower the distribution charge during the winter months (November 1 to April 30) to make operating these systems more affordable.
When structural programs are not enough, or when a household faces a sudden crisis, specific legal protections and emergency funds serve as a final safety net.
The Winter Moratorium: Utility companies are prohibited from shutting off gas or electric service for heating between November 15 and March 15 if you have a financial hardship. While this protects you from losing heat, it does not stop the bill from growing. It is crucial to use this time to apply for AMPs or other aid.
Protected Populations:
Good Neighbor Energy Fund (GNEF): This fund helps households who earn too much to qualify for LIHEAP but still struggle to pay their bills. It typically serves those earning between 60% and 80% of the State Median Income. Grants are distributed by the Salvation Army.
Residential Assistance for Families in Transition (RAFT): RAFT is a homelessness prevention program that can provide up to $7,000 in a 12-month period. These funds can be used to pay off significant utility arrears that threaten your ability to stay in your home.
Most of these programs are administered locally by Community Action Agencies (CAAs). There is no single central office for the entire state; you must contact the specific agency assigned to your city or town.
When you apply for LIHEAP at your local agency, you are often automatically assessed for the discount rate and weatherization services, making it a "one-stop" application process.
Key Agencies by Region:
You can find your specific designated agency by visiting the(https://www.masscap.org/agencies/).
For the 2025-2026 heating season, households are eligible if their gross annual income is at or below 60% of the State Median Income (SMI). For a household of one, this limit is approximately $49,196, and for a family of four, it is $94,608. Benefits range from $200 to $600 for primary heating, plus potential crisis supplements.
Yes. Massachusetts utility companies offer mandated discount rates (R-2/R-4). Eversource customers currently receive a flat 42% discount on electric bills and 25% on gas. National Grid recently introduced a tiered discount system (effective late 2025), offering discounts between 32% and 71% depending on your specific poverty level tier.
To accommodate delays in federal funding, the Massachusetts Department of Public Utilities extended the protection period. For the 2025-2026 season, utility companies cannot shut off gas or electric service for non-payment between October 27, 2025, and April 1, 2026, provided you can demonstrate financial hardship.
The AMP allows eligible low-income customers to have overdue balances forgiven in exchange for on-time monthly payments. Typically, if you pay your current monthly budget amount on time, the utility company forgives 1/12th of your past-due debt each month. You can often have up to $12,000 (depending on the utility) forgiven annually.
Yes. The Good Neighbor Energy Fund is a "fund of last resort" run by the Salvation Army. It is specifically designed for households that are over the income limit for state/federal aid (LIHEAP) but still facing temporary financial crisis. Eligibility typically covers incomes between 60% and 80% of the State Median Income.
Federal LIHEAP funds generally require at least one household member to be a U.S. citizen or "Qualified Alien" (e.g., Green Card holder). Mixed-status households can often apply through an eligible child. However, shut-off protections and private funds like the Good Neighbor Energy Fund may have more flexible requirements regarding status; always verify with your local agency.
You qualify for shut-off protection if you cannot pay your bill and one of the following applies: someone in the home is seriously ill (doctor's note required), there is an infant under 12 months, or all adults are age 65+. You must submit a Financial Hardship Statement to your utility company to activate this protection.
No. The Mass Save HEAT Loan offers 0% interest financing (up to $25,000 or $50,000) specifically for energy efficiency upgrades like installing heat pumps, insulation, or new windows. It cannot be used to pay off existing utility arrears. For arrears, you must apply for an Arrearage Management Program (AMP) or RAFT.
Yes. If your heat is included in your rent, you may still qualify for LIHEAP. Instead of a direct payment to a utility company, eligible renters often receive a partial benefit payment (typically 30% of the rent up to the program limit) paid to the tenant or landlord to offset the heating portion of their rental costs.
Residential Assistance for Families in Transition (RAFT) can provide up to $7,000 per 12-month period for housing instability, which includes utility arrears. You must apply through your regional Housing Consumer Education Center (HCEC). Unlike LIHEAP, RAFT is focused on preventing homelessness and can cover utility debts that threaten your tenancy.
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