Mass Solar Loan

As of January 1st, 2021, the Mass Solar Loan program is no longer processing new loan applications. Some participating lenders continue to offer market rate financing.

Resources to consumers and residents, installers, and banks and credit unions, who are interested in solar loans, can be found below.

To learn more about the program:

Visit our program metrics page and our incentive information and resource archive page.

For Consumers and Residents

Solar Loans and Financing Options - Can I make changes here?

Solar Electric Systems can provide long-term economic benefits, though there are up-front costs to installation. A variety of solar financing options can reduce the burden of an initial investment and facilitate solar ownership. For more detailed information, please refer to the MassCEC Residential Guide to Solar Electricity (pages 8-11) and the MassCEC Solar Financing Options page.

For more information on solar, including how it works, incentives, programs, and costs, please visit the MassCEC Solar Electricity page.

Get Started with a Solar Loan

The first step in purchasing solar PV is to find and contract with a solar PV installer
- Get quotes from multiple installers, ask lots of questions, and find an installer you're comfortable working with
- Visit MassCEC’s Finding an Installer page for additional guidance
- Consult our cost comparison tool, which provides information on the cost and performance of systems in your area
Concurrently or after selecting an installer, find a lender or loan provider
- A list of banks and credit unions who offered solar loans through the Mass Solar Loan Program can be found here, some of which may offer their own solar loan products (if you're a lender who offers solar loans, and would like to be listed here, please contact us at solarloans@masscec.com)
- Your installer may also have financing options they commonly offer or lenders they commonly work with
- Be sure to consider loan terms, interest rates, and closing costs of different financing options. Some loan providers may have dealer fees paid by the installer that result in higher system costs for projects financed through that loan provider

Regarding Existing Mass Solar Loan Projects:

For projects within the program that have not yet been completed:

After your solar system has been connected to the electric grid, your installer will file project completion documents. Upon approval of those documents, the remaining 65 percent of your loan will be disbursed.
If you qualified for Income Based Loan Support, this will be paid to your lender in our monthly payment cycle, in the month following your project’s completion approval. Once received, your lender will apply this incentive to your loan principal. This is most commonly 6-10 weeks after project completion approval. Please see the FAQ for more details.

Please check our incentive information and resource archive page for additional details about the program structure.

For Installers

Customers considering solar loan products may be directed to our Consumers and Residents section, which offers resources on solar financing as well as a list of lenders who participated in the Mass Solar Loan program.

Regarding Existing Mass Solar Loan Projects:

For projects within the program that have not yet been completed, installers should follow the steps below:

Proceed with constructing the solar project. Once the system is interconnected to the grid, installers will upload project completion documents to the Solar Loan Portal. Detailed instructions can be found in the Installer Portal Step-by-Step Instructions in the Installer Quick Start Guide.
After final review and approval of the project completion documents, MassCEC will inform the lender to proceed with the final disbursement of the loan amount via a two-party check.

Reminder: Per the Mass Solar Loan Program Manual, the deadline to submit project completion documents is 1 year after the loan support application has been approved.

For more information, please view these installer frequently asked questions or email solarloan@masscec.com.

Resources:

For Banks and Credit Unions

For Lenders Interested in Offering a Solar Loan Product

Introduction

Why Offer Solar Loans?

Solar Lending can open a new business opportunity.
Solar Loans are an opportunity to engage new customers (90% of program loans were a new lender relationship).
Solar is a revenue generating asset for the borrower, and annual savings/revenue from the system will often exceed the annual loan payments.
Solar Lending can support your community goals.

Toolkit for Launching a Solar Loan Product

From 2015 - 2020, MassCEC helped 17 lenders originate $180 Million in residential loans through the Mass Solar Loan program. MassCEC has developed these resources with insights from the program to support lenders in launching their own product.

Loan Performance

Performance data for loans that came through the program can be found on our Loan Performance Data page.

External Resources

Community Banks and Credit Unions Report Success with Solar Loans, NREL
- A 2018 paper examining the experiences of community banks and credit unions engaged in solar lending, including lessons and themes from product design and a review of loan performance to date.
Solar Lending Professional Training - Virtual Series, UNH Inclusiv Program
- With support from the US Department of Energy, UNH and the Inclusiv Center for Resilience and Clean Energy offer a course for community based lenders, offering the knowledge, skills and practice needed to engage in solar lending.

If your institution is interested in a solar loan product (or has already launched one) we are interested in hearing from you and hope the above resources can be helpful in the launch/operation of your product. Please reach out to solarloan@masscec.com with any questions.

Regarding Existing Mass Solar Loan Projects:

For existing and in process loans that came through the Mass Solar Loan program, please follow these steps:

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.

Reminders:

Monthly reports should continue to be submitted at the beginning of each month. Reports should be provided each month if there are any relevant changes:
- Changes to loan statuses (i.e. projects reaching full term period, or complete (fully paid off) status),
- Changes to delinquency information for any program loans (number of times 30, 60, 90 days late or defaults)
- Please remember to use our monthly report template.
Annual reports are due in January each year. Please remember to use our annual report template.

Resources:

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