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New Hampshire has 4 electric utilities averaging $0.24–$0.26/kWh — and none offer a special heat pump discount rate like Massachusetts. Here’s what that means for your operating costs and how to minimize them.
NH electricity rates average $0.22–$0.26/kWh across four utilities (NHEC, Liberty, Eversource, Unitil). Unlike Massachusetts, no NH utility offers a discounted heat pump rate. All heat pump usage is billed at standard residential rates.
Despite this, NH heat pump owners still save $1,000–$2,000/year vs oil and $600–$1,600/year vs propane. NH’s overall electricity rates are lower than MA ($0.25 vs $0.33/kWh), partially compensating for the lack of a dedicated HP tariff.
Massachusetts created special heat pump electricity rates to encourage adoption. NH has not. Here’s the side-by-side comparison.
Eversource MA
45% discount · Nov-Apr
National Grid MA
39% discount · Nov-Apr
Eversource
Southern & Central NH
Liberty Utilities
Central & Western NH
Unitil
Capital Region & Seacoast
NH Electric Cooperative (NHEC)
Northern NH & Rural Areas
Key Insight
NH’s standard rates ($0.22–$0.26/kWh) are already 20–30% lower than MA’s standard rates ($0.31–$0.33/kWh). While MA offers deeper HP discounts during winter, NH homeowners pay less for electricity overall. The net difference in annual heat pump operating cost between NH and MA is typically only $100–$300.
New Hampshire is served by four electric utilities. All participate in NHSaves heat pump rebate programs. None currently offer a discounted heat pump electricity rate.
Service Area
Southern & Central NH
Manchester, Nashua, Derry, Salem, Milford, Amherst
Customers
~520,000
Heat Pump Rate
No special HP rate — standard residential rate applies
Est. Annual HP Cost (2,000 sq ft)
$2,250/year
Community Power
Available in some towns — may reduce rates
Largest NH utility. Participates in NHSaves. Community power opt-out available in many towns.
Service Area
Central & Western NH
Salem, Keene, Littleton, Lebanon, Hanover, Newport
Customers
~45,000
Heat Pump Rate
No special HP rate — standard residential rate applies
Est. Annual HP Cost (2,000 sq ft)
$2,160/year
Community Power
Available in some towns — may reduce rates
Also provides natural gas in some areas. NHSaves participant.
Service Area
Capital Region & Seacoast
Concord, Hampton, Exeter, Windham, Atkinson
Customers
~75,000
Heat Pump Rate
No special HP rate — standard residential rate applies
Est. Annual HP Cost (2,000 sq ft)
$2,340/year
Community Power
Available in some towns — may reduce rates
Highest standard rate in NH. Also serves gas. NHSaves participant.
Service Area
Northern NH & Rural Areas
118 towns across NH — Plymouth, Meredith, Wolfeboro, Conway, Colebrook
Customers
~85,000
Heat Pump Rate
No special HP rate — standard residential rate applies
Est. Annual HP Cost (2,000 sq ft)
$1,980/year
Member-owned cooperative. Lowest rates in NH. Serves mostly rural and northern communities. Not eligible for community power.
Estimated annual heating costs for a typical 2,000 sq ft home with a cold-climate heat pump (COP 3.0, ~9,000 kWh/year heating load).
| Utility | Rate | Annual HP Cost | Savings vs Oil ($3,200) | Savings vs Propane ($2,800) |
|---|---|---|---|---|
| Eversource | $0.25/kWh | $2,250 | $950/yr | $550/yr |
| Liberty Utilities | $0.24/kWh | $2,160 | $1,040/yr | $640/yr |
| Unitil | $0.26/kWh | $2,340 | $860/yr | $460/yr |
| NH Electric Cooperative (NHEC) | $0.22/kWh | $1,980 | $1,220/yr | $820/yr |
🛢️
Heating Oil
$3,200
$3.69/gal
Volatile
🔥
Propane
$2,800
$3.62/gal
Rising
💨
Natural Gas
$1,850
$1.85/therm
Stable
⚡
Heat Pump (NH avg)
$1,150
$0.25/kWh
Stable
☀️
Heat Pump + Solar
$200
$0.00-$0.05/kWh
Locked
Since NH has no special heat pump rate, the most effective strategy is to generate your own electricity. NH’s net metering laws are favorable — here’s how solar changes the equation.
NH allows net metering for systems up to 1 MW. Excess solar energy produced in summer banks credits that offset winter heat pump usage. Your utility meter effectively runs backward.
A typical NH home with a heat pump needs an 8–12 kW solar array to offset all electricity including heating. This costs $20,000–$30,000 before any third-party financing arrangements, but reduces your effective electricity rate to near $0/kWh.
Solar + heat pump eliminates both your electric bill and heating fuel costs. A household switching from oil heat + grid power can save $4,000–$6,000/year. This is the strongest financial case for electrification in NH.
Without Solar (Oil Heat)
$3,200
Annual heating cost
Heat Pump, No Solar
$2,180
NH average · Grid power
Heat Pump + Solar
$200
Near-zero heating cost
As of February 2026, no NH utility offers a residential time-of-use rate comparable to the TOU programs in Connecticut or New York. All residential electricity in NH is billed on a flat volumetric rate regardless of when you use it.
This means there is no off-peak rate advantage for running your heat pump overnight or shifting usage to non-peak hours. Your cost per kWh is the same at 2 AM as it is at 5 PM.
Looking ahead: The NH PUC has explored rate modernization in recent proceedings, and TOU rates may become available in the future. If TOU rates are introduced, heat pump owners who run their systems during off-peak hours (overnight heating with thermal storage) could see significant additional savings.
Community power (municipal aggregation) allows NH towns to negotiate bulk electricity supply rates, potentially reducing the supply portion of your bill by 5–10%. Over 30 towns participate through aggregators like the Community Power Coalition of NH.
| Town | Estimated Savings | Aggregator |
|---|---|---|
| Hanover | ~5-10% | Community Power Coalition of NH |
| Lebanon | ~5-10% | Community Power Coalition of NH |
| Nashua | ~3-8% | Standard Power |
| Dover | ~5-10% | Community Power Coalition of NH |
| Exeter | ~4-8% | Community Power Coalition of NH |
| Rye | ~5-10% | Community Power Coalition of NH |
Note: Community power savings apply to the supply portion of your bill only (typically 50–60% of total cost). The delivery charges from your utility remain the same. For heat pump owners, even a 5% reduction on supply can save $100–$150/year. Check with your town to see if community power is available and whether you are automatically enrolled (most programs are opt-out).
Up to $1,250/ton for enhanced rebates. See what you qualify for.
Read guideFull pricing breakdown: ductless, ducted, and hybrid systems.
Read guideNH is #2 in the nation for oil-heated homes. See the savings.
Read guidePropane costs $3.62/gal in NH. Calculate your switch savings.
Read guidePerformance data at -15 degrees F. DOE testing was done in NH.
Read guideEnter your address and fuel type. Get a personalized cost estimate.
Read guideRates shown are approximate as of February 2026 and include both supply and delivery charges. Actual rates vary by rate class, usage tier, and supply period. Contact your utility or check the NH PUC website for the most current rates.
Whether you pair a heat pump with solar or run it on grid power, you’ll save $1,000–$3,000+ per year vs oil or propane. NuWatt installs both heat pumps and solar across New Hampshire.
Free assessment · No obligation · NABCEP certified installers