Loan Support Incentives
The Mass Solar Loan program includes three incentives to help Massachusetts residents go solar.
For loans closing on or after December 13th 2017, program incentives are focused on income qualified customers who fall within the income-based thresholds indicated below. Non-Income Qualified customers are not eligible for the below incentives, but may still take advantage of the technical project approval and program structure to seek market rate loans from participating lenders. Eligibility is based on total household income determined by the Total Income line of the tax return (2018 Form 1040 – Line 6) of the federal income tax filing for the most recent year available. An independent party will verify household income as part of the qualification process.
Interest Rate Buy Down
Available for residents qualifying as Low Income, as determined by the thresholds below. Qualifying customers are eligible for a 1.5% interest rate buy down. The interest rate buy down functions as a reduction in the interest rate paid by customers as compared to the typical rate charged by participating lenders. Non-Income Qualified customers and customers qualifying as Moderate Income are not eligible for the interest rate buy down and will receive market rate loans from participating lenders.
Loan Loss Reserve
Available for residents qualifying as Low or Moderate Income, as determined by the thresholds below. Depending on the qualifying 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
Available for residents qualifying as Low or Moderate Income, as determined by the thresholds below. For qualifying customers, the Mass Solar Loan program offers an additional incentive applied directly to the loan principal. This is paid directly to the lender as a portion of the loan principal when the project is complete. Low Income customers are eligible for a 30% reduction up to $10,500. Moderate Income customers are eligible for a 10% reduction up to $3,500.
Current Thresholds - As of October 25, 2018
Category 1 - Low Income
80% or Below of State Median Income
(Eligible for 30% reduction of loan principal)
Category 2 - Moderate Income
120% or Below of State Median Income
(Eligible for 10% reduction of loan principal)
*The maximum system cost or program loan amount used as the basis for calculating IBLS is $35,000
To understand how these incentives have changed over the duration of the program please review our Program Updates page.