Energy Saver Helps Homeowner Go Solar on the Vineyard

There were several reasons why Laura wanted to make her family's year-round Martha's Vineyard home more energy efficient and reduce its carbon footprint. Going solar would greatly reduce their energy costs and consumption, and going all electric would align with her town's formal goals to reduce household dependence on fossil fuels to address global warming and climate change.

Laura used MassHousing's Energy Saver Home Loan Program (ESHLP) that afforded her 20-year financing with just a half-point interest rate to install heat pumps for heating, cooling and hot water, as well as roof-mounted solar panels. Because of the favorable loan terms, she was able to take on tree removal for better solar efficiency and roof replacement as out-of-pocket expenses to maximize the energy-efficiency impact of the project. The combined improvements are expected to reduce her energy usage by 89 percent and reduce her CO2 emissions by seven tons annually, the equivalent of removing 1.5 cars from the road for a year.

A publicly employed professional on the island, Laura also sees the ESHLP as an opportunity for other lower-to-middle-income Island households to embrace solar conversion and energy reduction as a way to sustainably reduce the high costs of living year-round on the Vineyard.

Powered through the Massachusetts Community Climate Bank (MCCB) and MassHousing, the ESHLP helps eligible Massachusetts homeowners cut their energy use and reduce or eliminate their reliance on fossil fuels by providing 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. Laura's project is eligible for federal tax credits, state solar incentives and Mass Save rebates.

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

Laura heard about the ESHLP while participating in a Solar Coaching Program with Vineyard Power, which was formed in 2009 by a group of islanders to organize and influence the Vineyard's transition to a renewable energy future, including energy efficiency and renewable generation initiatives.

ESHLP loans are made in partnership with Concierge Service Providers (CSPs), who will guide homeowners through all aspects of the home energy improvement and financing process.

Vineyard Power collaborates with the Cape Light Compact, the CSP for the Cape and Islands, to provide energy efficiency programs and services to residents and small businesses.

Laura had applied for a solar program through Vineyard Power but was ineligible because she already had heat pumps in three rooms, despite the fact they were 15 years old and no longer fully effective.

"Our main goal was always to go solar," said Laura, "so I was primarily looking at solar programs. Vineyard Power acts as a connector to all these programs and I signed up for a solar coaching program. They ran me through several project possibilities, and which programs were available."

Dan Schell, the Customer Service and Outreach Manager for Cape Light Compact, noted "We've been thrilled to offer this loan product as a part of our suite of energy efficiency offerings for customers. When paired with the other programs out there, like Mass Save, which the Compact sponsors, we can make really deep energy savings to customers' homes and do so in an affordable manner. The Energy Saver Home Loan is a key tool to reduce upfront costs, and the 20-year term helps keep monthly payments very manageable."

Laura realized that if she used an ESHLP loan she could significantly increase the scope of her improvements beyond solar panels by replacing her outdated heat pumps and converting the remaining heating system and hot water heater from propane to electric. The overall energy reduction and long-term cost savings made it feasible for her to also replace her roof along with the tree removal.

"Those other components were not in our original budget, but this program came along with all the resources to figure out how to do the entire project," she said. "We figured out what we could accomplish with a much higher loan amount, and we were able to rethink the scope of the project. The program financing allowed us to do more to reduce our energy consumption now, which really saves us a lot of money in the long term. We were better off putting in new heat pumps and replacing the water system for increased energy saving and efficiency. "

While working with Vineyard Power and Cape Light Compact, Laura was referred to Abode Energy Management, the Energy Service Provider for the ESHLP. Joe Fisher, a Decarbonization Consultant from Abode, conducted a no-cost assessment of Laura's home and provided her with a detailed report of solutions that would lower its energy usage by an estimated 89 percent and reduce her CO2 emissions by seven tons a year.

"The Decarbonization Consultant program was incredibly helpful," said Laura. "Working with Joe at Abode gave me all the information I needed to understand and make decisions about the technical aspects of the project and educated me on how to ask the right questions. He helped me review the contractor proposals for each component of the project and helped parse through the different design and scope options, so that the end result achieved the most energy reduction possible. There was no way I could have done this without a professional like Joe."

"Laura was an exceptional collaborator, demonstrating expertise and actively propelling the project forward alongside Abode's energy modeling and project management work," said Joe Fisher. "It has been great watching her project goals come to fruition as her contractors complete their various scopes."

Kate Coleman from Cape Light Compact worked with Laura to get her Energy Saver Home Loan locally through Cape Cod 5 Bank. "I waited for them," she said. "The turnaround time for the bigger lenders was lengthy and I really preferred to engage with a local lender.

"They are a community-based bank with a great local track record of supportive engagement in affordable housing across the region, and they made the loan process understandable and accessible," Laura added. "I signed my loan documents just 10 minutes down the road from my house. I was the first Energy Saver loan on the Vineyard, and I hope more of my neighbors will be able to take advantage of this same opportunity" she said.

"Cape Cod 5 appreciates being able to partner with MassHousing and Cape Light Compact to help local homeowners access affordable financing that makes renewable energy and efficiency upgrades possible," said Liam Cahill, Senior Vice President, Director of Residential Lending Operations at Cape Cod 5. "By offering the Energy Saver Home Loan right here on the Cape, Islands and in Southeastern Massachusetts, we're helping our neighbors lower their energy costs and take meaningful steps toward a more sustainable future."

"Laura DaRonco and Pamela Kelley from the Cape Cod 5 Hyannis office helped me through the paperwork process for the loan financing approval, which we were able to do remotely," said Laura. "They were very responsive and helpful throughout the process. Then Brenda Ring at the Hyannis office set up the in-person loan closing with her counterpart at the Vineyard Haven branch, so I could sign the closing paperwork locally. The communication was great, and the process was smooth."

Laura hopes more homeowners on the Vineyard – and across the Commonwealth – take advantage of the ESHLP to lower their energy costs and carbon footprints. With the Vineyard having some of the highest housing costs in the state, Laura understands the importance for year-round residents to reduce their energy costs in order to remain in their homes affordably.

"This is the kind of program to directly serve that need," she stressed. "What we are paying monthly for the loan is half of what we would have paid for energy costs over the next 20 years. The low-interest loan is a critical piece to lowering long-term costs to keep people in their homes. The loan product itself is a complete game changer. This is an amazing product for low-to-moderate-income homeowners in the community."

West Tisbury has set a goal to be 100% electric by 2040.

Laura's advice to someone interested in the ESHLP is to contact their local Concierge Service Provider "to get started and be willing to engage. We've wanted to do solar for a long time, and I was so excited when Eversource gave us the final approval to flip the system on. I have a 20-year-old son and he's so thrilled. He's conscious of the need to address climate change and the environment and we want to be part of the solution."

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.

"We know the home energy improvement process can be confusing and overwhelming. That's why we're providing homeowners with free help from energy experts throughout the process. This end-to-end support paired with flexible, low-cost financing is essential to meeting our housing and energy affordability goals in Massachusetts," said Maggie Super Church, MCCB Director of Policies and Programs.

The program financing allowed us to do more to reduce our energy consumption now, which really saves us a lot of money in the long term." - Laura