The new $20 million Energy Saver Home Loan Program will help homeowners make clean energy improvements that cut energy usage and greenhouse gas emissions

Governor Maura Healey and Lt. Governor Kim Driscoll
Executive Office of Housing and Livable Communities
Executive Office of Health and Human Services

BOSTON - Governor Maura Healey announced today that the Massachusetts Community Climate Bank has launched a new $20 million program, the Energy Saver Home Loan Program, to help low- and moderate-income homeowners make clean energy improvements to their homes. 

The Massachusetts Community Climate Bank (MCCB) is the first green bank in the United States to focus on decarbonizing affordable housing, and the Energy Saver Home Loan Program is the MCCB’s first consumer product. The new loan program will lower barriers to clean energy adoption and assist property owners to cut their energy use and reduce or eliminate their reliance on fossil fuels by providing affordable financing and high-touch customer service features.

“Last year, we were proud to launch the Massachusetts Community Climate Bank – the nation's first green bank dedicated to affordable housing. Today, we are thrilled to take its work to the next level with the launch of its first consumer loan product that will help people across the state afford energy efficient homes,” said Governor Maura Healey. “Low- and moderate-income families disproportionally carry the burden of both climate change and the high cost of housing. Programs like this will help provide affordable financing options for homeowners to support our clean energy transition. We congratulate the teams at the Office of Climate Innovation and Resilience and MassHousing for their leadership.”

“The Massachusetts Community Climate Bank addresses two of our most pressing challenges - climate change and the high cost of housing,” said Lieutenant Governor Kim Driscoll. “This new consumer loan program will help us move forward on our climate goals and make housing more affordable.”

“I am thrilled about the Community Climate Bank’s new Energy Saver Home Loan Program!  For the first time, low and moderate-income homeowners will have concierge support—a real person—to walk them through, every step of the way, what needs to be done to make their home more energy efficient, switch to clean energy, and take care of coordinating all the eligible rebates in addition to flexible low-cost financing,” said Climate Chief Melissa Hoffer. “The Community Climate Bank took the initiative to find out what customers want, and designed a program that delivers. This will be a hassle-free experience for busy homeowners. Getting fossil fuels out of your home and reaping the savings from clean energy should be easy, and thanks to the Community Climate Bank, now it will be!”

The housing stock in Massachusetts is among the oldest in the United States and Massachusetts homes are some of the most reliant in the country on oil heating. Residential and commercial buildings are responsible for 30 percent of all greenhouse gas emissions in Massachusetts, and 60 percent of building emissions are generated by single family and small multi-family homes. Transitioning these homes to clean energy is a core component of Massachusetts’s ambitious goal of achieving net zero carbon emissions in the year 2050. 

The Energy Saver Home Loan Program is designed to accelerate the adoption of clean energy technologies by low- and moderate-income homeowners. 

The new loan program will provide flexible financing for a wide range of residential clean energy projects that support emissions reduction and healthier homes. Eligible homeowners may use Energy Saver loans to finance health and safety improvements such as roof replacement and oil tank removal, home weatherization, electrical system upgrades, heat pumps, new efficient appliances and fixtures, and installation of rooftop solar panels, battery storage and EV charging stations. To receive financing through the program, home improvements must reduce total energy usage by at least 20 percent. 

The Energy Saver Home Loan Program is unique in its ability to finance a larger amount (up to $100,000) in home improvements, including improvement costs eligible for clean energy rebates, utility incentives and tax credits. Financing will feature affordable loan terms with no upfront cash required. The new loan program will finance the cost of approved improvements, with rebate and incentive proceeds – including existing Mass Save and new federal rebates expected to be made available later this year – being used to pay down a portion of the loan amount. This provides bridge financing, helping customers with the upfront costs associated with weatherization, electrification and solar projects while they await rebates and tax credits.

The MCCB financing will come in the form of a low-cost, long-term subordinate mortgage. Interest rates will range from 0.5 percent to 2 percent, depending on household income. Mortgages will have a 240-month term, allowing for lower monthly payments. Loans will include an 18-month interest-only period, providing consumers with low-cost bridge financing for clean energy incentive and rebate programs, and will be serviced at MassHousing’s Mortgage Servicing Center.

“The Energy Saver Home Loan Program takes advantage of MassHousing’s statewide reach, high-touch customer service model, and expertise serving needs of lower and moderate-income homeowners,” said MassHousing CEO Chrystal Kornegay. “This new loan product will empower homeowners across Massachusetts to help advance our state’s ambitious clean energy goals, while slashing their home energy usage and making their homes healthier and more comfortable.” 

“The Energy Saver Home Loan Program is a game changer for our residents looking to get fossil fuels out of their home and reduce their energy costs,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “Reducing emissions from buildings are essential to meeting our climate targets. With the innovative solutions offered by the Climate Bank, Mass Save, and historic federal funds, Massachusetts residents will see more efficient, cleaner, healthier homes.”

"Congratulations to the Massachusetts Community Climate Bank on launching this new loan product for low- and moderate-income homeowners,” said Housing and Livable Communities Secretary Ed Augustus. “The flexibility it provides will allow people to improve their homes and reduce their carbon footprint at the same time."  

The Energy Saver Home Loan Program is designed specifically to meet the needs of low- and moderate-income homeowners. 

The loan program will employ flexible underwriting requirements and repayment structures that will lower the monthly costs associated with clean energy improvements. The program builds on MassHousing’s existing network of partner lenders and the Agency’s decades of experience supporting Massachusetts homeowners. 

The new loan program also offers new consumer supports not available through other publicly supported home energy programs across Massachusetts. The program will provide homeowners with wraparound customer service that will make clean energy improvements more accessible to consumers. 

The MCCB will administer the Energy Saver Home Loan Program in partnership with service providers across Massachusetts, who will help consumers to develop a customized home improvement plan, find quality contractors, and access available rebates and incentives to make the project more affordable. The high-touch program model will reduce barriers and connect consumers with resources more quickly and effectively. All In Energy, the Cape Light Compact and CET will provide consumer-facing concierge services. Abode Energy Management will serve as the program’s statewide energy services provider. 

The Energy Saver Home Loan Program is available to all income-qualified Massachusetts homeowners. The program may be used to finance energy improvements in either owner-occupied single-family homes, or in owner-occupied multifamily homes with up to 4 residential units. Homeowners earning less than 135 percent of the area median income are eligible for financing. Income limits vary by county and range from $190,775 in greater Boston to $124,875 in Berkshire County. 

The MCCB has allocated up to $20 million for the program, with a goal of committing up to 1,000 loans over the next two years. The program is designed to be scaled up with federal Inflation Reduction Act resources. 

MassHousing will work with a network of originating lenders to support the program. Participating lenders include Avidia Bank, Bank of Canton, Bristol County Savings Bank, Cape Cod Five Cents Savings Bank, Fall River Five Cents Savings Bank, Fidelity Cooperative Bank, Greylock Federal Credit Union, Holyoke Credit Union, Mill Cities Community Investments, Monson Savings Bank and The Cooperative Bank. The program is open immediately and homeowners may check their eligibility and begin the application process by visiting www.massclimatebank.com. 

The MCCB is an ambitious new climate finance initiative announced by Governor Maura Healey in June 2023. Located within MassHousing, the MCCB’s initial focus is to support decarbonization strategies in the residential sector, specifically in the low- and moderate-income multifamily rental and single-family homeownership markets. 

The MCCB is the first climate bank in the nation to launch with a specific focus on decarbonizing affordable housing. MassHousing is drawing on its decades of housing finance and investment expertise and lending capabilities serving these markets to advance the MCCB mission. The Climate Bank was established with $50 million in seed funding from the Massachusetts Department of Environmental Protection’s Climate Mitigation Trust. The Energy Saver Home Loan Program will utilize a portion that that seed funding.

From day one, the Healey-Driscoll administration has been committed to making Massachusetts a global leader in climate resilience and the clean energy economy. On Governor Healey’s first day in office, she established the nation’s first cabinet-level Climate Chief to coordinate climate policy across all executive agencies. Focused on making Massachusetts the world’s climate innovation lab, she recently proposed a $1 billion, 10-year investment in climatetech which will create thousands of good-paying jobs. Additionally, the administration has aligned state capital investment with mandated emissions reduction targets, established a clean energy innovation pathway for high school students, and filed an historic housing bond bill that would provide $150 million to decarbonize state-owned public housing and incentives for development of energy efficient, fossil-fuel-free homes.

About the Massachusetts Community Climate Bank

Massachusetts Governor Maura Healey created the MCCB in June 2023, as the nation’s first green bank dedicated to affordable housing. MassHousing will incubate and steward the MCCB’s growth in collaboration with two partners that are experienced in delivering green energy solutions into sectors beyond affordable housing: the Massachusetts Clean Energy Center (MassCEC) and the Massachusetts Development Finance Agency (MassDevelopment). The MCCB is organized to promote clean energy solutions for low - and moderate-income households by leveraging federal, state, and private funds. Massachusetts has prioritized accelerated investment in affordable homes - where residents bear a disproportionate burden of energy costs, and where families have been disproportionately impacted by pollution from fossil fuels. For more information about the MCCB, please visit our website at www.massclimatebank.com.

About Cape Light Compact

Cape Light Compact is a nationally recognized award-winning energy services organization operated by the 21 towns on Cape Cod and Martha’s Vineyard and Dukes County. The Compact’s mission is to serve its 200,000 customers through the delivery of proven energy efficiency programs, effective consumer advocacy and renewable competitive electricity supply. www.capelightcompact.org 

About CET

CET, a regional nonprofit, operates on the front lines of climate action by helping people and businesses decarbonize through waste reduction, energy efficiency, and electrification. With nearly 50 years of experience, CET envisions a world that has embraced and advanced just and resilient climate solutions. www.cetonline.org 

About All In Energy

All In Energy is a 501(c)3 nonprofit with a mission to advance an inclusive clean energy economy. We bring energy efficiency and renewable energy to underserved communities, while increasing job opportunities for diverse talent in the clean energy industry. www.allinenergy.org

About Abode

Abode Energy Management (Abode) is an energy management and consulting services firm based in Concord, Massachusetts. Abode is focused on creating innovative solutions to drive energy efficiency and carbon reduction in residential buildings. Their collective experience—in building performance, energy efficiency, decarbonization technologies, and contractor management—enables them to deliver engaging, impactful climate solutions for utilities, contractors, and homeowners. www.abodem.com 

About MassHousing 

MassHousing (The Massachusetts Housing Finance Agency) is an independent, quasi-public agency created in 1966 and charged with providing financing for affordable housing in Massachusetts. The Agency raises capital by selling bonds and lends the proceeds to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve affordable and/or mixed-income rental housing. MassHousing does not use taxpayer dollars to sustain its operations, although it administers some publicly funded programs on behalf of the Commonwealth. Since its inception, MassHousing has provided approximately $29 billion for affordable housing. For more information, visit the MassHousing website at www.masshousing.com, follow us on Twitter @MassHousing, subscribe to our blog, watch us on YouTube and Like us on Facebook.