Loan Support Incentives

The Mass Solar Loan Program includes three incentives to help Massachusetts residents go solar:  

Please note, MassCEC has recently announced an upcoming transition that steps down the loan support incentives listed below and focuses on the program on income-qualified customers. For more details, please see our Program Updates

Interest Rate Buy Down

For program loans closed prior to Oct. 17, 2016, the Mass Solar Loan program reduced the annual interest rate paid by solar system owners by 3 percent below the typical rate charged by participating lenders. For program loans closed on or after Oct. 17, 2016, the interest rate buy down decreases from 3 percent to 1.5 percent. This interest rate buy down is available to all solar system owners regardless of income.

Loan Loss Reserve

Depending on a resident’s credit score, lenders may be eligible for additional incentives to help their customers go solar. If a resident’s credit record is less than perfect, they should ask a participating lender if they might qualify for the Loan Loss Reserve incentive. 

Income-Based Loan Support

Consumers with annual household incomes below certain thresholds may be eligible to have the Mass Solar Loan program pay a portion of their loan principal when the project is complete. An independent party will verify household income as part of the qualification process. Eligibility for Income-Based Loan Support is based on total household income (Tax Return Form 1040 line 22) as determined by the federal income tax filing for the most recent year available. Incentive rates are shown below.

Current Thresholds - As of September 11, 2017

Income-based Thresholds by Household Size
Household Size

Category 1 

Below 80% of State Median Income

(Eligible for 30% reduction of loan principal)

Category 2

Below 120% of State Median Income

(Eligible for 20% reduction of loan principal)

1 $45,840 $68,760
2 $59,944 $89,916
3 $74,049 $111,074
4 $88,153 $132,230
5 $102,257 $153,386
6 $116,363 $174,544
7 $119,007 $178,510
8 $121,652 $182,478
9 $124,296 $186,444
10 $126,941 $190,412
11 $129,585 $194,378
12 $132,231 $198,346
13 $134,875 $202,312
14 $137,519 $206,278
15 $140,164 $210,246
16 $142,808 $214,212
17 $145,453 $218,180

*The maximum system cost or program loan amount used as the basis for calculating IBLS is $35,000 

See Prior Thresholds here.