Let’s be honest, energy bills are on everyone’s mind these days.
A cold winter or a spike in fuel prices can quickly escalate costs. For many households, that can mean tough choices to stretch the budget.
For homeowners and business owners trying to balance expenses, energy costs can feel unpredictable and overwhelming.
What is “Energy Affordability”?
Energy affordability isn’t just about low prices, but whether people can pay their energy bills without sacrificing other essentials.
An energy bill might look manageable on paper. But for a struggling family, even a seasonal spike in heating costs can strain the budget. Simply, energy is affordable when households and businesses can stay comfortable without financial stress.
Massachusetts is doing its part to reduce energy bills and encourage the development of clean energy alternatives. Gov. Maura Healey’s 2025 Energy Affordability, Independence & Innovation Act seeks to save $10 billion over 10 years, in addition to $6 billion in savings from her Energy Affordability Agenda.
What Drives Energy Costs in Massachusetts?
Energy prices are influenced by several factors, many of which are outside any one person’s control.
Weather and seasonal demand
Massachusetts experiences annual swings in temperature. Cold winters increase heating demand, while hot summers increase air conditioning use. When demand spikes, the energy grid works harder to supply enough power, increasing prices.
If it feels like this winter has been colder than the last few years, you’re not imagining things. The winter of 2025-2026 was more typical of a traditional New England winter, with average temperatures up to 7 degrees colder in the stretch from December to February.
As a result, you’ve likely used more energy to keep your house warm, even if you keep your house at the same temperature every winter. When it gets colder, your furnace works harder to reach and maintain that temperature. That, of course, means more oil usage and therefore higher costs in general.
Infrastructure and grid costs
Behind every light switch is a vast network of wires, substations, and power plants that must be maintained and upgraded to deliver reliable, on-demand electric service to every building in Massachusetts.
Much of New England’s electric grid is up to 50 to 75 years old. As equipment ages—and storms become more frequent—utilities must invest in repairs and upgrades to keep electricity flowing.
Further, the electric grid is built to meet peak demand. Meaning, we need to be able to keep everyone’s air conditioners powered on the hottest day of the year. But on most days of the year, we don’t need all that infrastructure and electricity. So, the lower our peak, the less infrastructure we all pay for.
Keeping the system running safely and reliably is essential and maintaining and improving that infrastructure also adds to the overall cost of delivering electricity.
Fuel and electric prices are on the rise
One major factor is the cost of fuel used to generate electricity. In New England, most electricity is produced using natural gas. When natural gas prices rise, electricity prices often follow. According to ISO New England, monthly wholesale electricity prices averaged about $139 per megawatt hour in December 2025—about 55% higher than the previous year.
The volatility of natural gas is also a major reason for higher costs. Renewable energy options like wind and solar don’t require periodic fuel purchases and therefore can offer more stable and consistent pricing.
Smart Ways to Keep Energy Costs Down
Preventing Overbuilding
With the costs of poles, wires, and pipes increasing, it is critical that we have systems in place to prevent overbuilding of our electrical grid and gas system. Utilities have a financial incentive to build infrastructure, so we need strong oversight in place that encourages careful planning and scrutiny of every investment.
A 2024 law established by Gov. Maura Healey created a Commission on Energy Infrastructure Siting and Permitting to provide oversight of the creation of clean energy infrastructure, reducing delays surrounding the permitting and siting process required for utilities to repair old equipment and build new transmission framework.
Energy Efficiency (The Cheapest Energy Is the Energy Not Used.)
While some factors affecting energy prices are outside our control, there are practical solutions that can make energy more affordable over time. One effective strategy is energy efficiency. Small improvements make a difference. Better insulation, energy-efficient appliances, LED lighting, heat pumps, and smart thermostats can reduce energy consumption—and bills—without sacrificing comfort.
These improvements are especially important because most buildings that will exist decades from now have already been built. The Acadia Center estimates that about 85% of buildings that will exist in 2050 are already standing today. Upgrading existing homes and buildings will be essential in reducing energy use and avoiding spending more on electric and gas infrastructure and supply.
Expanding Local Clean Energy Alternatives
Another way to stabilize energy costs is to expand renewable energy sources connected to the New England electric grid. Wind and solar power generate electricity without relying on fuels that can fluctuate in price.
According to the Union of Concerned Scientists, offshore wind projects can supply power during high demand and reduce pricing on the grid.
The Vineyard Wind project recently completed construction and will power over 400,000 homes across Massachusetts. The 704-megawatt Revolution Wind project is expected to be fully operational by the end of 2026, will supply enough electricity to run 350,000 households in Rhode Island and Connecticut.
Community solar is another option that’s gaining popularity. Anyone who has driven through Massachusetts has likely seen one of several solar panel arrays being built. Subscriptions to community solar programs can help reduce electricity costs by up to 20% by offering credits without the costs involved in private residential solar systems.
Governor Healey recently issued an executive order focused on securing the Commonwealth’s energy future and lowering costs by creating 10 gigawatts of new energy resources and 5 gigawatts of new storage to power about 2 million homes and save Massachusetts residents $10 billion over the next decade. The EO directs state agencies to move quickly to get energy built – like solar which is the cheapest and fastest to deploy today, while continuing to develop wind power and energy storage to help keep prices stable, accelerate efforts to reduce demand, expand technologies like geothermal for heating and cooling, and explore innovative energy sources like fusion energy and advanced nuclear.
Smarter technology and grid modernization
Technology is also helping to modernize the energy system. Advanced sensors and software allow utilities to monitor grid electricity flow and distribute power more efficiently. Battery storage and “virtual power plants” can store electricity for later use, reducing infrastructure upgrades. Smart meters will allow customers to access real-time information on their energy usage throughout the day and take actions to lower their costs.
Homes and businesses are increasingly becoming part of the solution. Rooftop solar panels, home batteries, and electric vehicles can send unused electricity back into the grid, balancing supply and demand.
A Practical Path Forward
Energy affordability isn’t a simple issue with a single fix. Prices are influenced by global fuel markets, changing weather patterns, infrastructure needs, and the amount of energy people use every day.
Improving energy efficiency, expanding renewable energy sources, and grid modernization work together to reduce costs while keeping power reliable.
The goal isn’t just lowering bills today. It’s creating an energy system that stays affordable, resilient, secure, and sustainable for years to come. At the end of the day, energy isn’t a luxury—it’s something everyone depends on.
Learn what options are available to help you save energy and save money by visiting the Clean Energy Lives Here website and subscribe to our newsletter to receive regular updates!