Maura Healy Announces Massachusetts Community Climate Bank

Governor Healey Announces Creation of Massachusetts Community Climate Bank, Nation’s First Green Bank Dedicated to Affordable Housing

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.

Massachusetts Energy Saver Home Loan Program

$50 million in seed funding intended to leverage federal funding and private sector opportunities to accelerate affordable, decarbonized housing development.

Located within MassHousing, the state's affordable housing finance and investment bank, the Climate Bank will develop finance programs and products designed to work in concert with MassHousing’s primary role in providing mortgage finance to affordable housing.

Massachusetts Energy Saver Home Loan Program

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