The Future of Gas in Massachusetts

Retrofits of regret.

A new report from Groundwork Data commissioned by ZeroCarbonMA warns that Massachusetts gas heating bills are set to double and triple in coming years, spurring “retrofits of regret” from homebuyers stuck with fossil fuel equipment. “The era of cheap utility gas is coming to a close and will have profound implications for all gas customers,” said Michael Walsh, Ph.D, report author and Founding Partner, Groundwork Data. “Most building owners will ultimately need to undergo a disruptive retrofit of regret to escape increasing costs and align with climate goals. This can be avoided by ensuring new buildings go beyond gas with the latest clean energy technologies.”

As highly efficient heat pumps continue to gain popularity in Massachusetts, a shrinking base of gas customers will see their annual gas bills rise even further as gas utilities continue to recuperate the cost of Massachusetts’s $34.4 billion gas pipeline replacement program. In contrast, even as Massachusetts invests in the electric system to anticipate greater demand from households upgrading to clean energy, electric rates are expected to rise no more than 10 to 20% in the coming decades. Even if the number of gas customers remains the same, gas rates are expected to double in the next 10 years alone according to the report.