The DOER seeks to support customers in the Commonwealth of Massachusetts on their journeys to upgrade their homes with energy efficiency and electrified equipment. The existing Mass Save® HEAT Loan offers zero-interest financing to residents who are eligible for Mass Save (i.e., residents serviced by investor-owned utilities (IOUs) or the Cape Light Compact). Through Mass Save, a network of over 50 local bank and credit union lenders provide loans to residents of up to $25,000 repaid over a fixed time period to finance qualifying energy efficiency and electrification measures. These include the installation of air source and ground source heat pumps, weatherization upgrades, and home energy storage systems. The customer pays no interest on these loans – instead the interest is paid out upfront to the lender by Mass Save. Because the HEAT Loan is only available to residents eligible for Mass Save, residents of municipal light and power electricity providers (MLPs) who do not utilize natural gas provided by an IOU for heat cannot access the HEAT Loan. MLPs cover 40 towns and cities in Massachusetts. The DOER plans to offer a Municipal Light Plant Zero Percent Interest Loan Program (MLP ZLoan) for energy efficiency and electrification improvements for customers in MLP territories who do not have access to the Mass Save HEAT Loan, using a combination of federal Energy Efficiency Revolving Loan Fund Capitalization Grant Program (EE RLF) funds and other state funds. The current expected funding from these combined sources is approximately $10M. The DOER will utilize these funds to pay the interest for these loans on behalf of eligible customers for eligible projects, essentially providing a grant to the customer. If successful, this program may serve as a model for an ongoing zero percent interest loan offering funded by the MLPs. The DOER seeks to establish an application process for MLPs who wish to participate in the MLP Z-loan. An MLP customer would be eligible for both a rebate offered by its MLP (including federally funded Home Efficiency Rebates) and a 0% loan of up to a maximum amount for up to five years on the remaining balance of a qualifying energy efficiency/electrification project.
