Discount Rate Programme Delivers Affordable Energy at Scale in Massachusetts
In New England, summers are often very hot, and winters are often frigidly cold. It's during these times when the use of energy in homes can spike.
This uptick can be especially difficult for those households struggling to pay energy bills to avoid shutoffs. That's why a team from National Grid New England worked diligently to create a new low- income discount programme for Massachusetts customers. The team designed, proposed, testified to regulators, and ultimately received approval through the state for a first of a kind, multi- tiered low- income discount programme. The newly approved programme expands customer eligibility and defines the magnitude of a discount based on a customer's income level, with the most vulnerable customers receiving upwards of 70% off their bills.
"Our energy burden analysis revealed significant differences within this customer group and across income levels" said Sandra Alvarado, Manager of Low- and Moderate- Income Strategy and Product Success. Alvarado remarked:
By introducing income tiers, we're bridging the gap between 'equity' and 'equitable.' This approach ensures that we treat customers fairly based on their unique circumstances.
The Rate R2 Discount Program was fully implemented on 30 September 2025 and introduces a tiered discount structure of 32-71% for income- qualifying households. The percentage discount that a customer receives depends on their income and household size. The new rate allows those with greater need to receive a larger discount on their electric bills, ensuring that assistance is both fair and impactful.
As of 30 October 2025, more than 200,000 customers had transitioned from the flat 32% discount to the new income- based tiers, aligning their savings more closely with household needs and expanding equitable energy access statewide. And since launch, the programme has delivered more than $12.8 million in retroactive bill credits to income qualified customers.
The programme has garnered significant stakeholder support for its impact on equity and affordability. "Tiered discount rates have been rare in the United States, but as we are now seeing in Massachusetts, they can be very helpful in supporting the lowest income households with their relatively high home energy burdens," said Andrew Hordern, Lead Analyst for Regulatory Delivery and Strategy.
For more information on the programme, including eligibility and how to enroll, visit our customer page here.