DOER is currently developing a residential solar loan program. The goal of the program is to reduce barriers for Massachusetts residents to directly own solar projects by facilitating access to loans by local banks. The program is designed to serve homeowners installing solar on their primary or secondary residences as well as small off-takers with ownership positions in community shared solar programs.  DOER seeks to enable cash-flow positive loans, and to provide sufficient risk mitigation to enhance lenders comfort in offering loans to homeowners over a wider range of wealth and credit qualifications.  As demonstrated by a 2013 DOER study pdf format of Final Report
, locally owned and financed solar projects, in comparison with 3rd party owned installations, provide substantially greater economic value to the homeowner and the local economy.  

The residential solar loan program will utilize $30 million of Alternative Compliance Payments (ACP) to provide credit enhancement to support consumer loans. ACP funds are paid by electric retail suppliers if they have insufficient Renewable or Alternative Energy Certificates to meet their compliance obligations under the Renewable and Alternative Portfolio Standard programs. The Massachusetts Department of Energy Resources (DOER) is currently working with a consultant team and stakeholders to develop the program, expected to launch in fall 2014.

During the week of June 30, DOER conducted a series of stakeholder meetings with the solar market as well as banks, credit unions and other relevant entities to review and receive feedback on the preliminary loan program design. Meetings were conducted in the Eastern, Central, and Western part of the state and comments were gathered through Tuesday July 15, 2014. DOER received both verbal and written comments on the preliminary loan program design. These comments are available here pdf format of Solar Loan Stakeholder R1 Comments
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The preliminary loan program design as presented at the Stakeholder Meetings is available here pptx format of Mass. Solar Loan Stakeholder Presentation
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To provide comments or gain further information, please contact Emma Krause at emma.krause@state.ma.us.

On August 20th, DOER presented a secondary draft design of the residential solar loan program to its lender working group. The group consisted of banks, credit unions, and solar developers who had attended DOER’s initial stakeholder meetings and expressed interest in providing further insight on the financial aspects of the program design. DOER presented a secondary program design to lender working group participants at the August 20th meeting. DOER received verbal comments and hopes to receive additional written comments on the secondary loan program design. Please provide comments to Emma Krause at emma.krause@state.ma.us by Thursday August 28th at 5:00pm. DOER will consolidate and post comments on our website shortly after the comment window has closed.

PLEASE NOTE: DOER has added a slide to the secondary program design based on the Lender Working Groups feedback and would appreciate comments on this slide in addition to the rest of the presentation.

The secondary loan program design as presented at the Lender Working Group Meeting is available here pptx format of Mass Solar Loan Lender Working Group Meeting
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