Across the country, a narrative is taking hold that rising utility costs mean consumers cannot afford to embrace clean energy. From Congress's decision last year to gut the Inflation Reduction Act to the Massachusetts Legislature's current debate about whether to slash funding for Mass Save, lawmakers are being told that the only way to achieve energy affordability is to walk back clean energy and climate action.

The opposite is true. Done right, investments in efficiency and clean energy drive down utility costs, boost home values, and improve comfort and livability while protecting residents from increasingly volatile energy prices.

We know the high cost of energy is hurting Massachusetts residents because we see it firsthand. Through our work at the Massachusetts Community Climate Bank, we've heard from thousands of residents and property owners across the state who have seen their utility bills soar and are looking for affordable solutions.

We created the Energy Saver Home Loan Program to tackle these challenges head-on. The program, which supports homeowners in 1-4 family properties, makes home energy improvements accessible and affordable while cutting greenhouse gas emissions.

Energy Saver Home Loans provide flexible, low-cost financing that can be paid off over 20 years, paired with expert guidance on whole home energy planning, accessing incentives and tax credits, and finding qualified contractors. The program offers up to $100,000 in financing at an interest rate of either 0.5% or 2% depending on borrower income, with an upper limit of 135% of Area Median Income (a little over $200,000 in some Massachusetts counties).

These loans can be used for a broad range of energy-related home improvements, from health and safety and electrical upgrades to better insulation, highly efficient heat pumps, roof repairs, solar panels, electric vehicle charging infrastructure, shade trees and more.

Energy Saver customers have greatly exceeded the program requirement of 20 percent modeled energy savings, achieving an estimated 56 percent modeled reduction in home energy usage.  Collectively, Energy Saver customers are expected to reduce their homes' annual CO2 emissions by over 420 metric tons – the equivalent of burning 982 barrels of crude oil every year.

What can we accomplish by adopting a coordinated, whole-home, customer-centered approach that treats energy affordability as a measurable goal alongside emissions reduction?

A moderate-income homeowner on the South Coast came to the Climate Bank looking to transition from home heating oil and install solar, heat pumps, and a heat pump water heater. The Energy Saver program connected this resident to Mass Save's turnkey program, which provided her with a no-cost heat pump and heat pump water heater through Mass Save; the Climate Bank financed her rooftop solar system with a low-cost Energy Saver loan.

The combined impact of these improvements is a whopping 91 percent annual reduction in energy use and a 6-ton reduction in annual CO2 emissions. Just as importantly, this homeowner's utility bills are down significantly. To quote her directly, "My April electric bill was only $18! I'm so happy! My heat pump and solar installation wasn't completed and activated until last fall, so it's taking a bit of time to fully appreciate the financial impact -- so glad I made the decision both financially and environmentally -- and I will have central air conditioning this summer for the first time -- no more window units!"

This is what true energy affordability looks like: improving home performance with insulation and air sealing, ditching costly and polluting fuels, and pairing new efficient heat pumps with clean, affordable solar power.

The Climate Bank has heard similar stories from homeowners across Massachusetts.

Ryan and Sarah inherited a 20-year-old gas furnace when they purchased their East Falmouth home. They originally planned to only replace the furnace with a heat pump system, but affordable Energy Saver financing allowed them to also install rooftop solar panels, a solar hot water heater, new siding and a new, efficient front door. The combined improvements will allow their home to approach net zero energy consumption.

A Springfield resident swapped an older oil-burning furnace for an electric heat pump. Pairing the new heating and cooling system with rooftop solar panels allowed this household to reduce their energy consumption from the grid by 51 percent; the Climate Bank also financed roofing improvements and tree removal at the site to maximize the solar system's performance.

Meredith, a Shutesbury resident, used Energy Saver financing to replace her home's electric baseboard heating with a heat pump and install a rooftop solar system. Her home improvements combine to reduce her energy consumption by an estimated 80 percent, and 5.1 fewer metric tons of CO2 emissions annually. "I was deeply grateful for that interest rate. I wouldn't have been able to do all the work I did without that," Meredith told us.

Based on our experience working with hundreds of households across Massachusetts, here are five things we've learned about what it takes to advance both energy affordability and climate progress:

1. Provide flexible, low-cost, long-term financing for whole-home energy improvements. Energy Saver Home Loans are by far the most affordable energy financing available in Massachusetts today, making it possible for the average homeowner to achieve deep energy savings on a budget. These loans don't replace Mass Save or Municipal Light Plant incentives – they amplify them and help residents do more at once, reaping benefits sooner.
2. Help homeowners create a roadmap for home energy improvements. For most people, a home is their single largest financial asset. Without a baseline assessment and a plan, homeowners often miss important opportunities to save energy and money or improve home comfort.
3. Pair weatherization and air sealing with high-efficiency electric heat pumps and rooftop solar to maximize utility cost savings. For most 1-4 family homes, rooftop solar can generate much of the electricity needed for heating, cooling and hot water over the course of a year. The new seasonal heat pump rates and SMART 3.0 solar incentives make this an even more affordable and attractive option.
4. Provide clear and easy-to-use information on available incentives, rebates and tax credits. Many homeowners and renters don't know what's available to them through Mass Save, Municipal Light Plant programs, or state and federal tax credits. We built a simple online search tool to solve this problem and make sure that everyone in Massachusetts can find and apply for home energy improvement dollars, even if they are not Energy Saver borrowers.
5. Make it easy to find qualified local contractors for home energy projects. Finding a qualified contractor, especially for multiple energy-related scopes of work, can be challenging and time-consuming. We worked with Abode Energy Management to create and maintain an ever-growing list of vetted and approved contractors for Energy Saver Home Loans across multiple trades in every corner of Massachusetts that is available online for anyone to use.

This common-sense approach matters for all of us who live in Massachusetts, but especially for low and moderate-income residents who are struggling to keep up with utility bills and other household expenses. The homes that our customers have already transformed are proof that we don't have to trade climate progress for energy affordability – we just need to continue investing in what already works.

Maggie Super Church is Director of Policies and Programs for the Massachusetts Community Climate Bank at MassHousing.