Understanding how utility electric rates affect customers installing heat pump systems is essential for program administrators. This section equips administrators with resources to better understand electric rate considerations, including potential utility bill impacts, operational impacts, and available rate options. These resources will help program administrators understand the impact of electric rates on heat pump users and guide them in advising customers on the most cost-effective options for their needs.  

Electric Rate Resources

Developing Electric Rates for Hybrid Air Source Heat Pumps in the Midwest - Center for Energy and Environment

This report explores the modeling of special electric rates tailored for hybrid air source heat pumps in the Midwest. It examines the potential impacts of various rate structures on consumer behavior, energy efficiency, and the overall grid, emphasizing the need for innovative pricing models to support the adoption of these technologies in a way that benefits both consumers and utilities. A webinar outlining this work was hosted in June 2023.

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Heat Pump–Friendly Cost-Based Rate Designs - Energy Systems Integration Group

The report discusses cost-based rate designs that facilitate the adoption of heat pumps, focusing on how these structures can encourage efficiency and grid reliability. It highlights various rate design strategies that align consumer incentives with the operational needs of the electric grid, promoting a smoother integration of heat pumps into the energy system.

Designing Electricity Rates for An Equitable Energy Transition - Energy Institute at HAAS  

This report explores the need for changes in California’s electricity pricing structure to ensure an equitable energy transition as the state works toward carbon neutrality. While California has made significant strides in decarbonizing its electricity supply, the report emphasizes that adjustments in how electricity costs are distributed will be crucial for achieving fair outcomes, particularly for vulnerable populations.

Equity and Electrification-Driven Rate Policy Options - ACEEE

This report discusses emerging solutions to improve affordability for households in areas with high electricity rates, which may face increased bills from fuel switching. Proposed strategies include a percentage-of-income payment program, modifying electricity rates to incentivize fuel switching, and a California proposal for income-based fixed charges.

Electricity Ratemaking and Equitable Rate Design: A Survey of Best Practices - Brattle

This presentation covers how electricity rate structures are designed and their evolution, highlighting best practices for rate design. It discusses strategies for adapting rates to encourage equitable and efficient energy use, focusing on approaches that support electrification and affordability for all customers.

Why Rate Design in New England Needs a Refresh - Regulatory Assistance Project

This set of 4 briefs examines the mismatch between current residential pricing and modern grid needs in New England. It highlights how large utilities' rate designs fail to reflect time-varying grid costs, from electricity supply to regional capacity, and identifies significant opportunities to improve residential pricing structures to better serve customers' evolving needs.

Utility Rate Impacts and Opportunities - MAPC

This presentation/webinar explores the current impacts of utility rate structures and offers potential policy and programmatic solutions. It covers the challenges of existing rate designs and discusses strategies to address them, with a focus on creating more equitable and effective rate structures that meet both consumer needs and grid requirements.