Program Updates

Program Funding Caps and Upcoming Transition – September 2017

The Mass Solar Loan program is nearing full utilization of the initial program funding (tracked here). In order to meet the overall goals of the program, MassCEC has announced an upcoming transition that steps down loan support while providing $10 million in additional funding for future program activities that focus on income-qualified customers.

Timeline:

The new program structure will take effect for all loans closed after a ‘date certain’ to be set by MassCEC. MassCEC will announce the date of the transition with a minimum 30 days’ notice. The date certain will be set to ensure utilization of the current Interest Rate Buy Down (IRBD) and Income Based Loan Support (IBLS) allocations under the existing program structure.

Awarded funds will be allowed to exceed their initial allocations ($12 million IRBD and $10 million IBLS) prior to the date certain transition. A portion of the additional funding is available to maintain Income Based Loan Support and Interest Rate Buy Down at their current rates until the announced date.

New Program Structure:

Non-Income Qualified Customers (Greater than 120% of State Median Income) - will not be eligible for any loan support incentives (IRBD, IBLS, and Loan Loss Reserve), however will still be able to take advantage of technical project approval and program structure to seek market rate loans from a participating lender. Standard loan requirements and consumer protections such as the interest rate and closing cost caps will still be applicable for non-income qualified customers.

Moderate Income Customers (Between 80% and 120% of State Median Income) - will be eligible for Income Based Loan Support corresponding to 10% of the loan amount, capped at $3,500, and will be able to qualify for Loan Loss Reserve if eligible. Moderate income customers will NOT receive an interest rate subsidy and will receive market rate loans from participating lenders.

Low Income Customers (Below 80% of State Median Income) – The incentives will remain unchanged from the current program structure. Low income customers will be eligible for Income Based Loan Support corresponding to 30% of the loan amount, capped at $10,500, and will be able to qualify for Loan Loss Reserve if eligible. Low income customers will be eligible for a 1.5% Interest Rate Buy Down (the current IRBD rate).


Updated Income Based Loan Support Thresholds - Effective September 11th, 2017

Effective September 11th 2017, Income Based Loan Support thresholds have been updated to reflect more recent data on state Median Income. Please see http://www.masssolarloan.com/loan-support-incentives to see these updated thresholds. 


Wall Street Journal Prime Rate Adjustment - Effective June 15, 2017

The US Federal Reserve announced June 15 2017 an increase in the Target Federal funds rate and therefore the Wall Street Journal Prime Rate has increased from 4% to 4.25%. The Gross Loan Interest Rate under the Mass Solar Loan program is capped at WSJ Prime + 2.75% so effective June 15 2017 this cap is now 7.00% (making the maximum Customer Interest rate 5.50% after the Interest Rate Buy Down). 


Wall Street Journal Prime Rate Adjustment - Effective March 16, 2017

The US Federal Reserve announced March 16 2017 an increase in the Target Federal funds rate and therefore the Wall Street Journal Prime Rate has increased from 3.75% to 4%. The Gross Loan Interest Rate under the Mass Solar Loan program is capped at WSJ Prime + 2.75% so effective March 16 2017 this cap is now 6.75% (making the maximum Customer Interest rate 5.25% after the Interest Rate Buy Down). 


Updated Income Based Loan Support Thresholds - Effective February 14, 2017

Effective February 14th 2017, Income Based Loan Support thresholds have been updated to reflect more recent data on state Median Income. Please see http://www.masssolarloan.com/loan-support-incentives to see these updated thresholds. 


Wall Street Journal Prime Rate Adjustment - Effective December 14, 2016

The US Federal Reserve announced December 14th 2016 an increase in the Target Federal funds rate and therefore the Wall Street Journal Prime Rate has increased from 3.5% to 3.75%. The Gross Loan Interest Rate under the Mass Solar Loan program is capped at WSJ Prime + 2.75% so effective December 14th 2016 this cap is now 6.5% (making the maximum Customer Interest rate 5% after the Interest Rate Buy Down). 


Program Updates - Effective Oct. 17, 2016

As announced on Sept. 13, 2016, in order to meet the overall goals of the program, the following changes to the interest rate buy down (IRBD) take effect October 17, 2016.

  1. Loan Loss Reserve (LLR) funding re-allocation: The Mass Solar Loan program will reallocate $3 million in unreserved LLR funding to the IRBD budget, increasing the total amount of IRBD funds from $9 million to $12 million. The LLR incentive will continue to be available going forward and loans with previously allocated LLR funds will not be affected.
  2. IRBD Rate Step Down: The IRBD rate will decrease from the 3 percent to 1.5 percent. All loans closed prior to Oct. 17, 2016 will receive the current IRBD rate of 3 percent. All loans closed on or after Oct. 17, 2016 will receive the new IRBD Rate of 1.5 percent. This will be based on the loan closed date as entered by the lender on the loan support application.

Please contact solarloan@masscec.com with any questions.