Energy Saver Home Loan Program Powers Long-Awaited Decarbonization Project

David had long wanted to decarbonize his Cape Cod home and make it more energy efficient.

He started by researching and installing heat pumps for his water heater and home heating. It was during his research of the heat pumps and other energy-efficient options that he came across the Energy Saver Home Loan Program (ESHLP), which provided him with low-interest, 20-year financing to replace his roof and install long-desired solar panels to help offset his electric costs.

The ESHLP, powered through the Massachusetts Community Climate Bank (MCCB) and MassHousing, helps eligible Massachusetts homeowners cut their energy use and reduce or eliminate their reliance on fossil fuels. It provides low-interest rate, second-mortgage loans that support a variety of energy-related home improvements. Another benefit of the program is that participants receive guidance on available incentives and tax credits to lower the cost of their home energy projects.

After obtaining a loan from a MassHousing lending partner, ESHLP participants make their monthly payments to MassHousing, which manages the disbursement of funds.

"I always had a dream of becoming greener and reducing my carbon footprint and this was a great way to get involved in that," said David, a retired researcher. "When you can replace your roof and have solar panels installed through a 20-year financing option where the interest rate was very low - for me 0.5 percent - it was a no brainer. My roof was 26 years old so it needed to be replaced. I could do it on my own dime or finance it over 20 years through this program, so it worked out well. I don't think I could have done it otherwise."

David learned about the ESHLP through the program's Concierge Service Provider (CSP) for his community, Cape Light Compact (CLC). Kate Coleman from CLC determined that David met ESHLP eligibility, and he was referred to Lindsay Carrick at Cape Cod 5, an ESHLP lending partner.

"Cape Cod 5 was amazing," said David. "Lindsay Carrick held my hand through this whole process. This is a big expenditure, between the roof and solar panels more than $50,000. The bank needs to make sure you are qualified to repay this loan. Fortunately, I'm fairly organized," David continued. "I had most of that information and the bank had a portal I could submit all that through, so it was just a matter of finding a file and uploading it."

The next step in the process was David being referred to Abode Energy Management, the Energy Service Provider (ESP) for the ESHLP. Joe Fisher, a Decarbonization Consultant from Abode, conducted a no cost decarbonization assessment of the home and provided David with a detailed report of solutions that would reduce his energy use by at least 20 percent.

"Joe ran some modeling and that helped guide me to what I needed for a solar package," said David. "I had always wanted to do solar and that would help me be able to run the heat pumps at a lower temperature and help offset the electricity cost. I wanted to put the solar panels where they would be the most efficient. You need to be aware of that. Some companies want to sell you things you don't need. With Joe, he pointed me in the right direction. I think it's a great program."

Once David knew what he needed from his assessment report and solutions from Abode, he started gathering estimates from program-approved roofing and solar contractors and settled on one for each job.

With his financing and project contracts in hand, David watched first his roof being replaced and then the installation of the solar panels. His ESHLP improvements made him eligible for a 30 percent federal tax credit. Unrelated to the ESHLP work, David also replaced the home's siding to give his property a complete makeover.

"Reducing our carbon footprint is essential," he said. "It's something we should all be striving for. It seems like the right thing to do. As individuals we need to step it up and every bit helps. If we can get more people to decarbonize their homes the better we will be as a nation and as a world."

David's successful experience with the Energy Saver Home Loan Program was highly enhanced by his collaboration with Cape Light Compact, Abode and Cape Cod 5.

"Kate Coleman, Joe Fisher and Lindsay Carrick were all terrific," he said. "They answered all my questions and were patient and guided me through the process. It went very smoothly. It's a great program and I would recommend it."

Maggie Downey, Chief Administrative Officer at Cape Light Compact, said, "At Cape Light Compact, we've worked for over 20 years to assist residents with improving their energy efficiency. It's been great to see the Energy Saver Home Loan program fit in with that mission, and to hear from our local residents that they've found it beneficial.

"High interest rates and high monthly payments for loans are common barriers we see, especially when it comes to financing solar installation. Being able to offer a loan that mitigates those barriers has been a real boon for our customers," she added.

Abode's Joe Fisher said, "David was a fantastic customer to work with through the entire process of the Energy Saver Home Loan Program. He brought enthusiasm, focus and a clear objective for minimizing his home's environmental impact. Working with David one-on-one during the design and planning phase of his project was incredibly easy thanks to his proactive work on all scope elements, allowing us to delve deeply into optimizing the performance of his existing systems in concert with his new solar PV array. In the end, David ended up with a home that will reduce his environmental impact, save him money on energy bills and continue to grow as a green asset in the future," Fisher added.

"At Cape Cod 5, we are always looking for new opportunities to make a positive impact," said Liam Cahill, the bank's Senior Vice President and Director of Residential Lending Operations. "Supporting energy efficient upgrades through accessible financing options is part of our commitment to providing solutions that meet the needs and goals of our clients while investing in the long-term well-being of our communities."

The Massachusetts Community Climate Bank, with resources like the ESHLP, is working to accelerate investments to decarbonize the building sector in Massachusetts. As the Commonwealth transitions to a net zero future, MCCB promotes an equitable transition to clean energy by addressing the needs of low- and moderate-income households and environmental justice communities. MCCB initially focused on affordable housing.

"We're delighted to help Massachusetts homeowners like David who want to reduce their energy use and make their homes more comfortable and affordable to live in," said MCCB Director of Policies and Programs Maggie Super Church

Watching his solar panels being installed on his new roof, David said he was pleased he was able to finance his project through the ESHLP.

"It's super exciting," he said as contractors worked behind him. "I'm really jazzed to have solar to take care of my electrical needs. They determined how much energy I had been using and how much (the solar panels) was going to produce so I should come out ahead of the game, which will be a wonderful thing."