Cutting Mass Save funding: a misguided approach to the energy affordability crisis

How an affordability bill may raise energy bills in Massachusetts, not lower them

By Jolette Westbrook and Rishab Jagetia

Massachusetts has some of the highest utility rates in the country. In response, on February 26, 2026, the state House passed a landmark energy affordability bill, H5151, aimed at lowering costs. The bill takes important steps to expand clean, affordable energy and provide near-term relief for customers.

But it also contains misguided cuts to energy-saving programs that benefit customers. The legislation directs utilities to cut $1 billion dollars from Mass Save, the Commonwealth’s nation-leading energy efficiency program. New analysis shows that this move risks driving costs higher over time, especially for low-income households.

Energy efficiency is a proven cost saver

For more than 15 years, Mass Save has helped Massachusetts residents and businesses cut energy use and lower bills. The program funds upgrades such as insulation, efficient appliances and modern heating and cooling systems that reduce waste, lower emissions and save money.

“Residents pay a monthly fee to fund Mass Save on their electric bill, but what’s less visible is how they benefit from all the costs they avoid,” said Chris Neme, a Principal at Energy Futures Group. “That includes energy they don’t use, power plants that don’t get built and price spikes that never happen.”

Mass Save reduces the need for costly infrastructure, lowers wholesale electricity prices and shields customers from fuel price swings. These system-wide benefits flow to every ratepayer. From 2022-2024, the program delivered nearly $2.4 billion in energy bill savings for MA families and businesses. Mass Save is projected to remain highly cost-effective, returning more than $2 in benefits for every dollar invested.

Mass Save prioritizes those who need it most

Energy efficiency programs are sometimes criticized for favoring wealthier households because they require upfront costs and are easier for homeowners – not renters – to access. Mass Save does the opposite.

The program directs significant funding to low- and moderate-income households and renters, who face the greatest barriers to lowering their energy bills. For 2025-2027, 26.2% of program spending is dedicated to low-income households, even though such households account for only about 13% of total electricity use in the state. From offering upgrades and improving language access support for non-English speakers to increasing support for renters, Mass Save helps the communities hit hardest by rising energy costs.

 The program also strengthens the state’s workforce. In 2024, Mass Save supported over 76,000 jobs with median wages well above the state average. This is equivalent to three times the amount of renewable energy jobs and two-thirds of all the clean energy jobs in the state. In 2025 alone, the program invested $24 million in workforce training to grow the clean energy economy.

Cuts to Mass Save will hurt residents, not help them

H5151 suggests cutting $1 billion in administrative and marketing costs. In practice, such cuts will inevitably slash essential programs that reduce energy costs, lower bills, support higher-paying jobs, and expand access for environmental justice communities. Cuts would also jeopardize outside funding that state regulators have worked to secure, increasing the share of costs borne by ratepayers.

With energy bills skyrocketing in Massachusetts, the state should move quickly to accelerate clean, affordable energy development and avoid investment in unnecessary fossil fuel infrastructure. Cutting energy efficiency undermines those goals.

 A proven solution we cannot afford to cut

 Mass Save lowers bills, reduces pollution, and directs resources to the families that need them most. It is a cost-effective solution that continues to provide necessary benefits. If lawmakers want to address affordability and protect vulnerable communities, they should fully fund Mass Save, not cut it.