Author: Municipal Finance Legal Guidance
This article features frequently asked questions concerning the Energy Revolving Loan Fund. For additional information please see IGR-2026-10. Please let us know if you have other areas of interest or send a question to cityandtown@dor.state.ma.us. We'd like to hear from you.
What is the Energy Revolving Loan Fund?
Under G.L. c. 44 § 533/4, the Energy Revolving Loan Fund allows Massachusetts cities and towns to provide financing to property owners for qualifying energy conservation and renewable energy improvements on their private properties.
How is the program established?
Before adoption, the municipality must hold a public hearing. From there, a city or town must adopt a bylaw or ordinance creating the Energy Revolving Loan Fund.
Who administers the program?
The municipality designates a fund administrator through the local bylaw or ordinance. The administrator may be an individual, municipal board, regional planning agency, or a jointly administered program shared among municipalities.
What types of projects qualify?
Qualifying projects may include:
- Solar panel installation or replacement
- Electric vehicle charging stations
- Energy-efficient heating and cooling systems
- Insulation improvements
- Energy-efficient windows and doors
- Conversion from fossil fuel systems to electric systems
- Oil tank removal
- Energy-related engineering or feasibility studies
Since the statute does not explicitly name qualifying projects, municipalities have flexibility to determine additional qualifying projects that support energy conservation or renewable energy goals.
How are the agreements established with the taxpayer?
The city or town enters into an agreement with the taxpayer for the loan, and the notice of agreement is recorded as a betterment and becomes a lien on the property.
Loan repayments are added to the property owner’s tax bill and collected in the same manner as a betterment assessment.
What happens if the property is sold?
The property owner is personally liable for the loan. However, once a property is sold and the purchaser assumes all of the original owner’s interest in the property at the time of conveyance and the recording of the assumption, the original owner will no longer be personally liable for the loan.
Can condominium associations participate in the program?
Yes. Condominium associations may enter into agreements to finance projects benefiting common areas and facilities. Required approvals from unit owners must be obtained, and costs are allocated among the benefiting units.
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Editor: Dan Bertrand
Editorial Board: Sean Cronin, Scott Ditto, Janie Dretler, Jessica Ferry, Christopher Ketchen, Paula King, Jen McAllister, Brianna Ortiz and Tony Rassias
| Date published: | July 16, 2026 |
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