BOSTON – December 10, 2025 – The Massachusetts Community Climate Bank at MassHousing announced today that the Climate Bank's Energy Saver Home Loan Program has exceeded $5 million in closed loans. The Climate Bank's flexible, low-cost financing is helping moderate-income homeowners across Massachusetts improve the efficiency of their homes and adopt clean energy technologies, while significantly reducing energy consumption.
Homeowners using the MCCB's Energy Saver Home Loan Program are projected to reduce their annual energy usage by an average of 56 percent. To date, MCCB Energy Saver financing has reached residents in 72 of the Commonwealth's 351 cities and towns.
"The Energy Saver Home Loan Program is advancing the Commonwealth's ambitious climate goals, reducing energy usage and fossil fuel consumption, and supporting long-term housing affordability," said MassHousing CEO Chrystal Kornegay. "By centering the needs of moderate-income homeowners, we are acting on housing affordability and climate resiliency, in all regions of the state."
"Flexible, low-cost loans from the Massachusetts Community Climate Bank at MassHousing empower residents to undertake home improvements that make their homes more comfortable and efficient, while keeping monthly costs manageable," said Maggie Super Church, Director of Policies and Programs at the Massachusetts Community Climate Bank at MassHousing. "Our Energy Saver Home Loans help maximize the impact of existing clean energy incentives and rebates, in ways that are designed to work for everyday homeowners. Our team is proud to reach this milestone and looks forward to the program's continued growth."
Massachusetts Governor Maura Healey created the MCCB in June 2023 as the nation's first green bank dedicated to affordable housing. MassHousing is stewarding the MCCB's growth. The MCCB is organized to pursue financial innovation and promote clean energy solutions for low- and moderate-income households by leveraging state, federal, and private funds. Massachusetts has prioritized accelerated investment in affordable homes -- where residents bear a disproportionate burden of energy costs, and where families have been disproportionately impacted by pollution from fossil fuels.
MassHousing and the MCCB launched the Energy Saver Home Loan Program in April 2024, as the MCCB's first consumer-facing loan product. The program was capitalized with $20 million in seed funding from the Massachusetts Department of Environmental Protection's Climate Mitigation Trust.
The Energy Saver Home Loan Program provides between $10,000 and $100,000 in subordinate mortgage financing, to help Massachusetts homeowners cut their energy use and reduce or eliminate their reliance on fossil fuels. Energy Saver loans finance a wide range of energy efficiency and clean energy home improvements, including insulation and weatherization, heat pump adoption, and the installation of rooftop solar systems that support broad reductions in home energy usage.
The program is open to Massachusetts homeowners earning up to 135 percent of the area median income (ranging between $205,335 in eastern Massachusetts, to $165,645 in Worcester County, to $129,870 in Hampden County).
Energy Saver loans offer extremely flexible, low-cost financing. The program features loan terms of 20 years, at an interest rate of either 0.5% or 2%, depending on household income. Energy Saver loans require no cash down payment and feature an initial 18-month interest-only period, allowing homeowners to finance the full value of their home improvement project, including the value of eligible incentives and rebates.
After the interest-only period, a $50,000 Energy Saver loan would cost a lower-income homeowner $235.85 per month, while middle-income homeowners would see repayment costs of $269.64 per month.
The Energy Saver Home Loan Program features a unique wraparound customer service concierge model that guides homeowners through the energy improvement process, from assessing their home's energy performance and clean energy improvement options, to identifying incentives and rebates, to contractor outreach and applying for loan financing.
The Energy Saver Home Loan Program has a goal of helping customers achieve a minimum energy savings of 20 percent. To date, program customers have significantly exceeded that figure. The average modeled energy reduction to date is 56 percent. More than three of every 10 Energy Saver customers have achieved modeled home energy savings of at least 70 percent.
Rebecca, a Chelmsford resident, turned to the MCCB at MassHousing to help retrofit her home after encountering high gas heating bills last winter. An Energy Saver loan allowed Rebecca to swap her gas-fired furnace for an electric heat pump, replace her roof, and install a rooftop solar system. The project also involved new insulation and a heat pump rebate from Mass Save. The combined improvements are estimated to reduce Rebecca's home energy use by 74 percent and her CO2 emissions by nine tons annually.
"The thing that really sold me on the ESHLP loan was the amount we could borrow with just 2 percent interest," said Rebecca. "This let us future-proof the house. We will never have to do this again."
More than 4 of every 5 home improvement projects financed by the Energy Saver program involve the installation of rooftop solar, either in combination with an ESHLP-financed heat pump, or as a capstone to prior home electrification work financed through utility incentive programs such as Mass Save. The program's ability to finance residential solar projects at below-market interest rates enables homeowners to offset the utility costs of home electrification.
Jason, a Brockton resident, purchased a three-family home in the city with his wife during the pandemic. The property needed extensive repairs, including a new heating system. Jason installed heat pump heating and cooling at the property and was pleased with the new HVAC system's performance, but not with his utility costs. He turned to the MCCB at MassHousing to finance a new solar power system that will reduce utility costs for his household and for his tenants.
"I didn't want to pay out of pocket," said Jason. "When I looked at private loans the interest rates were high. Do I want to pay 7 percent for a loan?" The MCCB at MassHousing allowed Jason to finance a new rooftop solar power system at a 2 percent interest rate. The clean energy improvements will allow Jason's family to reduce their energy usage by an estimated 36 percent and reduce their CO2 emissions by two tons a year.
"This is a very affordable financing option, not only the financing piece, but if you own the system there are way more savings and benefits that you get," said Jason. "The loan is a lot cheaper than making utility payments. This program is something they should let first-time homebuyers know about because many times you need to make property improvements down the road," he added.
The financial capacity of the Energy Saver Home Loan Program, with a maximum loan amount of $100,000, enables Massachusetts homeowners to undertake larger and more complex clean energy projects than would otherwise be possible. To date, the average Energy Saver home loan amount is more than $61,900. The program's low interest rates enable homeowners to see the immediate benefits of significant clean energy retrofit projects, while managing their monthly costs.
Laura, a public employee living year-round in West Tisbury on Martha's Vineyard, originally engaged with the MCCB at MassHousing to finance a rooftop solar system. However, the Energy Saver Home Loan Program's low interest rates allowed Laura to significantly increase the scope of her improvements by replacing her home's outdated heat pumps and converting the home's 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 and undertake tree removal to maximize the performance of her new solar panels.
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. Laura sees her clean energy project as a way for other moderate-income Island households to sustainably reduce the high costs of living year-round on the Vineyard.
"We figured out what we could accomplish with a much higher loan amount, and we were able to rethink the scope of the project," Laura said. "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."
Improving home energy efficiency and transitioning residential buildings from fossil fuels are key components to achieving the state's goal of net zero carbon emissions by the year 2050. Across Massachusetts, residential and commercial buildings create 30 percent of the state's greenhouse gas emissions. In Massachusetts cities, many of them environmental justice communities, buildings are the source of as much as 70 percent of greenhouse gas emissions. Across Massachusetts, 60 percent of all residential building emissions are from small residential homes of one to four units.
"This milestone would not be possible without the banks, credit unions and community lenders who originate Energy Saver Home Loan Program mortgages on MassHousing's behalf," said Mounzer Aylouche, Vice President of Homeownership Programs at MassHousing. "We thank all of our lending partners for their effort and commitment to growing this innovative home loan program."
"Our team sees the impact the Energy Saver Home Loan has on families every day," said Travis Estes, Chief Operating Officer of Abode Energy Management. "This service and loan make it possible for homeowners to make practical investments in their homes to improve comfort and reduce energy costs with expert support along the way. By combining thoughtful planning and coordination with accessible financing, multiple improvements can be installed together, compounding the benefits. As we serve more households and contractors across the state, we're excited to see the momentum this program is generating and know that our work with MassHousing and our partners is making a difference."
"We're proud to be part of delivering this groundbreaking financing solution, ensuring that customers who can most benefit from cost-saving energy efficiency measures actually have access to them," said Ashley Muspratt, CEO of CET. "As Concierge, it's our job to make it easy for participants to navigate each step in the loan process, and given the milestone we've just hit, I think the proof is in the numbers."
"The Compact has found the Energy Saver Home Loan to be a great addition to our suite of energy efficiency offerings for residential customers," said Maggie Downey, Chief Administrative Officer of Cape Light Compact. "The low interest rates and 20-year term of the loan allow customers to bundle more upgrades together at once so they can take advantage of savings earlier than if they tried to tackle upgrades in phases. Of the 13 loans that have closed in our territory, the customers have seen an average energy reduction of 65 percent, which equates to real budget savings. We look forward to continuing to offer this loan to our customers and being able to help them drastically reduce their energy use and carbon footprint."
"All In Energy is pleased to be part of a program that is helping families across Massachusetts reduce their energy bills and be more comfortable by making meaningful improvements to their home," said Gabe Shapiro, co-founder of All In Energy. "We congratulate MassHousing and the other organizations supporting this program on reaching this important milestone."
"Across communities, support from the Energy Saver Home Loan Program has helped homeowners improve their old homes while significantly reducing their energy consumption. We've seen this program truly make a difference in people's lives," said Lissette Paukert, Residential Services Director at Nectar Community Investments. "Nectar is proud to be a participating lender in the program and to assist homeowners on their journey. We look forward to continuing our partnership with the Massachusetts Community Climate Bank at MassHousing to reach the people and places that need it most."
About the Massachusetts Community Climate Bank
Massachusetts Governor Maura Healey created the MCCB in June 2023 as the nation's first green bank dedicated to affordable housing. MassHousing is stewarding the MCCB's growth in collaboration with two partners that are experienced in delivering green energy solutions into sectors beyond affordable housing: the Massachusetts Clean Energy Center (MassCEC) and the Massachusetts Development Finance Agency (MassDevelopment). The MCCB is organized to promote clean energy solutions for low- and moderate-income households by leveraging federal, state, and private funds. Massachusetts has prioritized accelerated investment in affordable homes -- where residents bear a disproportionate burden of energy costs, and where families have been disproportionately impacted by pollution from fossil fuels. For more information about the MCCB, please visit our website at www.massclimatebank.com.
About MassHousing
MassHousing (The Massachusetts Housing Finance Agency) is an independent, financially self-sustaining agency created in 1966 to confront the Commonwealth's housing challenges. The Agency provides financing to low- and moderate-income homebuyers and homeowners, and to developers who build or preserve rental housing. As a mission-driven agency, MassHousing uses housing finance to strengthen communities, to help people build economic prosperity, and to expand homeownership. Since its inception, MassHousing has provided more than $30 billion to support homeownership and rental housing opportunities across Massachusetts. For more information, visit www.masshousing.com.
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