Mass Save: A Brief History and Why It Matters to Massachusetts
Introduction: This memo on Mass Save history was created by Steve Cowell who was involved with the utilities and Conservation Law Foundation (CLF) in the early 1980’s as the effort to recreate Mass Save to effectively deliver energy efficiency was a new effort. This is being delivered by NEEEC, which is directed by Steve Cowell. Prepared by the Northeast Energy Efficiency and Electrification Council (NEEEC) May 2026
This summary reflects the historical development of the Mass Save program and draws on the author’s direct experience working in energy efficiency policy in Massachusetts over several decades, along with publicly available program documentation.
This document provides an overview of how Mass Save evolved over the decades and an understanding of the positive impact it has had on energy use in Massachusetts and across the country. The goal is to help build long-term support for continuing and expanding the Mass Save program.
Mass Save began in 1978–1979 as a result of federal legislation requiring utilities to provide energy audits for their customers.
In 1979 the Office of Citizen Participation delivered an energy efficiency education program in Fitchburg that received national attention. Subsequently, the Massachusetts Legislature provided almost two million dollars to expand energy efficiency education statewide.
At the time, new compact fluorescent light bulbs cost about $13 each, weighed nearly a pound, and used roughly 90% less energy than conventional bulbs. These were distributed at no cost to low-income households by Community Action Agencies under contract with the Office of Citizen Participation.
A nonprofit wholesale company, Energy Federation Inc. (EFI), was created to purchase the bulbs and negotiate with manufacturers to improve the product. Over a three-year period, this effort helped create a new low-cost product that transformed the lighting industry.
In 1984, lighting upgrades were incorporated into the energy audit program in collaboration with Mass Save. As a result, the cost of the energy audit could now be paid for through the savings generated by energy-efficient lighting.
The start of this process in 1982 reflected a growing realization that the Mass Save audit program was not resulting in comprehensive energy efficiency improvements. Mass Save auditors often did not provide customers with useful information, and utilities still earned profits primarily through electricity sales rather than conserving energy and electricity—an inherent conflict.
In 1982 the newly formed FSDC met with the Conservation Law Foundation (CLF) to design a plan for decoupling utility profits from electricity sales and establishing a Performance-Based Rate (PBR). In other words, utility companies could earn a profit for documented energy efficiency savings.
This proposal was outlined in a document titled Power to Spare, which presented to the Department of Public Utilities (DPU) the concept that energy efficiency should be placed on a level playing field with new power supply. If saving a kilowatt-hour of electricity is less expensive than producing one, utilities should invest directly in efficiency. This principle eventually became an integral part of Mass Save.
With guidance from the DPU, investor-owned utilities agreed to this concept. Over the next five years, a plan was developed and submitted to the DPU in 1987. The plan used audits and incentives to help consumers adopt energy efficiency measures while incorporating the Performance-Based Rate structure.
In 1985 the utilities contracted with a new statewide nonprofit organization, the Community Energy Partnership (CEP). CEP brought together existing nonprofit organizations committed to energy efficiency as a cornerstone of Massachusetts energy policy.
One early enhancement in 1984 was the integration of energy-efficient lighting into the audit program. This helped Energy Federation Inc. secure improvements in lighting technology from manufacturers.
In 1985 CEP further enhanced Mass Save audits by creating the first in-home energy audit using a portable computer, allowing auditors to produce a printed report for the customer.
In collaboration with Mass Save, CEP also introduced blower-door testing to measure and locate air leakage in homes. Initially, instrumented air sealing was carried out by CEP crews, but in the early 1990s that work shifted to insulation contractors so air leakage reduction could be combined with insulation improvements.
These technologies were later adopted nationally and helped transform energy efficiency efforts. A new industry based on “building science” emerged and matured over the following decades, supported in large part by the Mass Save program.
A pilot program was conducted in Northampton, Massachusetts by the Center for Ecological Technology (CET) to document weatherization potential and savings for 200 electrically heated homes. The work included additional insulation, air sealing, weatherization, and lighting retrofits.
The utilities engaged a consultant to evaluate the estimated savings and confirmed that the results were consistent with projections.
The comprehensive plan was submitted to the Department of Public Utilities (DPU) in 1987. This revised Mass Save plan incorporated decoupling and a Performance-Based Rate (PBR) framework developed through collaboration with CLF and many other organizations.
This work continued in partnership with LEAN, a consortium of low-income Community Action Program (CAP) agencies, to coordinate Mass Save with the federal Weatherization Assistance Program (WAP).
Mass Save services for low-income customers continue to be delivered through LEAN.
The updated Mass Save program was approved by the DPU in 1990, with the requirement that utilities invest in energy efficiency whenever it is cost-effective compared to new power supply.
The program has been reviewed and enhanced annually with input from utilities, CAP agencies, the Department of Energy Resources (DOER), and other energy experts and stakeholders.
Program delivery was carried out by Conservation Services Group (CSG), which evolved out of CEP. As the contractor infrastructure developed and improved over time, Mass Save expanded to allow private contractors to deliver energy audits and related services.
Air sealing, once performed by specialized CSG crews, is now widely integrated into the marketplace and has become a standard component of new home construction. These advances reflect the lasting impact of early Mass Save program design and implementation.
Over the next 12 years, 26 states adopted energy efficiency plans and programs based on the Mass Save model, many of them implemented with support from CSG.
In 2008, legislation was proposed to shift Mass Save funding to municipalities. A statewide coalition opposed this change and worked with the legislature to preserve the existing successful program structure,
As a result, the new legislation maintained Mass Save as a utility-administered program and delivered through LEAN and CSG, with strengthened oversight and review through the Energy Efficiency Advisory Council (EEAC), organized by the Department of Energy Resources (DOER). It also included the initial plans to implement the idea of active involvement of municipalities, so the Green Communities Act continued the original plan in conjunction with Mass Save and not a replacement.
Massachusetts is widely recognized as the national leader in delivering energy efficiency services and advancing new technologies grounded in building science, from lighting to heating and cooling systems.
The state has developed a mature energy efficiency industry that provides good local jobs and supports a skilled workforce. Investments in energy efficiency generate cost savings that can be reinvested on other goods and services in the broader economy.
Since 2008, Mass Save has continued to evolve through three-year plans reviewed and approved by DOER, the EEAC, and the DPU.
In recent years, additional legislative and administrative policies have focused on reducing Greenhouse Gas (GHG) emissions through energy efficiency and electrification.
Mass Save has responded by supporting programs that reduce reliance on fossil fuels, including heat pump incentives, zero-interest loans, and approved contractor networks.
The program has also expanded its focus on equity and Environmental Justice communities, with successful on-the-ground implementation supported by municipalities and community-based organizations working at the local level to advance both equity and climate goals,
Mass Save initiatives have continued to help build an industry of hundreds of companies and thousands of workers in a large network of businesses across Massachusetts. A recent jobs report documented approximately 10,000 businesses and 86,900 workers engaged in energy efficiency activities statewide.
The most recent three-year plan includes expanded efforts to serve Environmental Justice communities, low- and moderate-income households, and to meet the Commonwealth’s climate goals established by the legislature.
Massachusetts can take pride in its national leadership role in developing and implementing these critical policies. Current program data indicate that for every $1 invested in Mass Save, approximately $3 in energy and related benefits are delivered.
Massachusetts’ success with Mass Save reflects the active participation and sustained collaboration of public agencies, policymakers, community organizations, Community Action Agencies, building scientists, energy experts, insulation and weatherization contractors, and Program Administrators (PAs).
Together, these stakeholders have built and sustained a program that has evolved continuously from 1979 to the present.
We hope this reflection and summary supports understanding of the program’s value and contributes to continued efforts to strengthen and expand the success of Mass Save in the years ahead.
Sources (selected):
• Massachusetts Mass Save Three-Year Energy Efficiency Plans
• Massachusetts Department of Energy Resources (DOER)
• Energy Efficiency Advisory Council (EEAC) reports
• Massachusetts Department of Public Utilities (DPU) energy efficiency orders
• ACEEE State Energy Efficiency Scorecard