For Banks and Credit Unions
Participation in the Mass Solar Loan program is an opportunity for lenders to become a part of the growing Massachusetts residential solar market. Interested lenders should email firstname.lastname@example.org for more information.
While terms may vary, participating lenders are required to offer fixed-rate, 10-year loans between $3,000 and $35,000. Lenders may also choose to offer loans of up to $60,000. For loans closed on or after December 13th 2017, Mass Solar Loan will provide a 1.5 percent Interest Rate Buy Down as an upfront payment for customers qualifying as Low Income (Below 80% of State Median Income). Customers considered Non-Income Qualified, or Moderate Income (Between 80% and 120% of State Median Income) are not eligible for the Interest Rate Buy Down and may seek market rate loans from participating lenders. Lenders may charge a maximum market interest rate (pre-subsidy) of Wall Street Journal prime rate + 2.75 percent (currently 7.5 percent).
In addition to the Interest Rate Buy Down described above, lenders will receive direct payments from Mass Solar Loan to reduce the loan principal for loans provided to income-eligible residents. The program also provides a Loan Loss Reserve for income qualified customers to assist lenders in providing loans to borrowers whose credit score may not typically meet lender eligibility requirements. More information about the specifics of these subsidies can be found in the program manual.
Lenders interested in the program must verify their eligibility and ability to offer a loan that meets program requirements as described in the financing program agreement. Lenders can also familiarize themselves with the annual and monthly reporting templates.
To participate in the program, please follow these steps:
- Review and sign the financing program agreement and return it to email@example.com along with a complete Financing Program Agreement Cover Sheet, as found in the Lender Quick Start Guide.
- MassCEC will provide you with a personal training of the program process and a login and password for the Mass Solar Loan Portal, the central location where lenders can reserve program loan support.
- Prepare internal processes to receive loan applications. This can include:
- Developing a dedicated webpage,
- Creating customized marketing materials,
- Providing internal staff trainings on the solar loan product, and
- Setting up systems to track and report on solar loans.
- When you are prepared to start making loans, contact firstname.lastname@example.org and you will be added to the list of qualified lenders.
- Residents and installers will sign turnkey solar installation contracts. Once proposed solar system designs have been reviewed and approved by MassCEC, residents will receive a Technical Confirmation document that they must provide to participating lenders. Only residents presenting MassCEC’s Technical Confirmation are eligible to participate in Mass Solar Loan.
- Use the Loan Support Calculator to determine the amounts of support a particular loan will receive. Once a lender and a resident have agreed to terms and are ready to close a loan, the lender will log in to the Mass Solar Loan portal and claim the customer’s approved project to reserve loan support funds (the loan must close within one business day of submitting the loan support application in the portal). Review the Lender Portal Step-by-Step Instructions found in the Lender Quick Start Guide for more information about using the portal.
- Disburse 35 percent of the loan through a two-party check to the resident and the solar installer.
- List the loan on your next monthly report to MassCEC to receive disbursement of the applicable Interest Rate Buy Down for the loan’s interest-only period.
- Once the project has been completed, MassCEC will notify you via email that the final 65 percent of the loan may be disbursed. This email will also alert you if any changes have been made to the project that may reduce loan support amounts.
- List the final disbursement on your next monthly report to MassCEC and receive the remaining applicable Interest Rate Buy Down and any applicable Income Based Loan Support.
For more information, view these lender frequently asked questions.