Massachusetts demonstrates substantial financial savings from offering heat pumps and solar panels at no cost to residents.

The Cape Light Compact, a regional organization, recently administered a successful home electrification and solar pilot program for lower-income households on Cape Cod and Martha's Vineyard. The program, known as the Cape and Vineyard Electrification Offering, was conceived to help overcome the up-front costs of efficiency and clean energy upgrades.

The pilot program, which began in January 2024 and concluded in May 2025, aimed to amplify the impact of individual technologies by deploying them together. This included solar panels, heat pumps, batteries, electric dryers, and stoves. As a result, participating households have reported drastic reductions in energy costs and carbon footprint.

Before the program, households on Cape Cod making less than one-third of the area median income spent an average of 27% of their income on energy, according to U.S. Department of Energy data. However, an analysis by Guidehouse shows that participating households are now reducing their electricity use significantly. The average household participating in the program is saving approximately $150 per month on energy costs.

One homeowner, Judy Welch from Chatham, has experienced a remarkable change. She reported that her summer energy bills are now zero and her winter energy bills are nearly zero, thanks to solar-powered heat pumps.

The program provided solar panels to all 55 participating households and heat pumps to 45 of those, with some receiving batteries, electric dryers, and stoves. The solar panels are intended to keep down the cost of operating heat pumps, while batteries are intended to maximize the amount of zero-cost electricity available to each home.

Massachusetts has a history of strong incentives for renewable energy and energy efficiency policies. The state approved the pilot program in 2023 after previous proposals in 2018, 2020, and 2021. The program has reduced net electricity use by 59% for participating households, mainly through the use of on-site solar panels.

Despite these benefits, lower-income households in Massachusetts have faced challenges in realizing the benefits of these measures. The Cape and Vineyard Electrification Offering is a significant step towards ensuring that these households can also reap the rewards of clean energy and energy efficiency.

Participating residents have given the program an exceptionally good "net promoter score" of 71%. This high score indicates a strong level of satisfaction and willingness to recommend the program to others.

The success of the Cape and Vineyard Electrification Offering is a testament to the potential of similar programs in helping lower-income households reduce their energy costs, carbon footprint, and energy burden. The program serves as a model for other regions looking to implement similar initiatives.

Massachusetts demonstrates substantial financial savings from offering heat pumps and solar panels at no cost to residents.