HEAT Loan Lenders

What is the Mass Save® Heat Loan offer?

The Mass Save HEAT Loan offers homeowners 0% financing opportunities for eligible energy-efficiency or electrification upgrades. The Program Sponsors pay down the interest of the loans to participating lenders.

 

Who sponsors this offer?

Mass Save is a collaborative of Massachusetts’ electric and natural gas utilities and energy efficiency service providers including Berkshire Gas, Cape Light Compact, Eversource, Liberty, National Grid, and Unitil. Collectively, these companies are referred to as the Sponsors of Mass Save.

 

How can a lender participate?

Participation in this offer is competitively procured through a RFQ process. On this page you will find details and dates about the RFQ process, as well as an outreach form you can complete to request regular communication about the lender RFQ.

 

What are the benefits for lenders participating in the HEAT Loan offer?

• Engage with your community
• Promote energy efficiency
• Help your customers save money
• Bring in new customers, and provide new benefits to your existing loyal customer base
• Upfront interest buydown on the full loan amount

 

What residential upgrades are eligible for financing?

• Heat pumps:

• Air source heat pumps
• Ductless mini-splits
• Air to water heat pumps
• Ground source heat pumps

• Windows
• Heat pump water heaters
• Mass Save weatherization work
• Pre-weatherization barriers
• Residential batteries (enrolled in ConnectedSolutions)

 

Do lenders need to verify the completion of projects funded by HEAT Loans?

HEAT Loan Participating Lenders do not need to verify the completion of the project. There is an inspection process that is performed by the HEAT Loan Vendor that does not affect the lending institution.

What is the interest rate applied to loans?

The interest rate is set at the current prime rate, as reported by the Wall Street Journal at time of loan approval. Lenders then apply a margin to this prime rate based on the borrower's FICO or Vantage scores.

 

How is interest calculated?

By using the net present value of the loan term, and the interest rate, as described above.

 

What is the typical average loan amount for residential customers participating in this program?

The average loan amount is approximately $17,500.

 

What is the maximum amount a customer can finance through this program?

• The maximum loan amount is $25,000. Customers can access the program more than once, but their loans combined cannot exceed the $25,000 maximum.
• Any available Mass Save incentives are deducted from the cost of the project cost to determine the final amount eligible for financing.

 

What is the maximum loan length?

The current maximum lending term is 7 years; however, the Program Administrators are exploring income-based limits.

 

How often is the interest reimbursement paid to the Participating Lenders?

Interest is paid on a rolling monthly basis to each lender via check or ACH.

 

What happens if a borrower defaults on their HEAT Loan?

HEAT Loans can be offered as secure or unsecured loans. Should a default occur, Lenders should adhere to established internal protocols to appropriately manage this situation. Program Administrators are only responsible for the interest of the loan amount approved by the HEAT Loan vendor.

 

Are there income restrictions on borrowers?

There are no guidelines provided by the Mass Save HEAT Loan Program for loan approvals. This is determined by each lender’s underwriting process.

 

Is it the lenders responsibility to review the energy efficiency improvements a customer is financing?

No, the HEAT Loan Vendor reviews customer work scopes, and provides customers with an authorization form for eligible work.