About the MLP Z-Loan
The DOER MLP Z-Loan is a zero-interest loan program that provides an affordable financing option for energy efficiency and clean heating and cooling upgrades for households in communities served by Municipal Light Plants (MLPs). The loan helps homeowners in MLP territories make upgrades that can reduce household energy use and improve building performance.
The Z-Loan is an interest free loan of $500 to $25,000 for up to five years for eligible energy efficiency improvements. The loan is available to owners of residential properties that receive electric or gas service from an MLP and are not eligible for Mass Save® programs. Many Massachusetts residents served by MLPs do not have access to financing options like the one available through Mass Save, and the Z-Loan provides customers across all MLP territories with a consistent no-interest financing opportunity for qualifying energy efficiency home improvements.
Modeled on the Mass Save HEAT Loan, the Z-Loan will help households reduce upfront costs and provide important long-term grid resilience benefits by ensuring more efficient electric homes. Before beginning any upgrades, a qualifying home energy assessment (HEA) must be completed. Z-Loan financing is available for eligible measures recommended through the HEA.
What Does the Z-Loan Cover?
Loans cover energy efficiency and electrification upgrades, including heat pumps, heat pump water heaters, insulation improvements, and weatherization barriers. Weatherization barriers means work that is needed before upgrades can be made, such as the need for updated electrical wiring, structural concerns, or mold or vermiculite abatement.
How Do I Apply for a Z-Loan?
1. Get a home energy assessment
Schedule a home energy assessment (HEA). HEAs can be scheduled though ENE - Sustainability or NextZero, depending on which MLP serves your community.
2. Get a quote
After the HEA, work with a contractor to get a proposal for upgrades before applying for a Z-Loan.
3. Apply
Visit www.myz-loan.com to apply for a Z-Loan. Wait for approval from a participating lender before beginning any work.
Eligibility
Residential customers are eligible if they receive electric service from an MLP and heat their home with the electricity from an MLP, gas from a municipal gas company, or a delivered fuel (e.g. oil and propane). Prior to beginning any upgrade work, a qualifying home energy assessment must be completed, and only the measures identified in the assessment will be eligible for financing. Applicants will be required to submit documentation to confirm program eligibility, including the assessment report, an itemized contractor invoice, and confirmation of MLP electric service and home heating service. Loan approval is subject to a credit check and determined in the sole discretion of a qualified financial institution.
All measures must:
- Be recommended through a qualifying assessment
- Comply with federal EE RLF Program Requirements
- Undergo post-installation verification
- Be completed by a licensed contractor
Ineligible measures include:
- Solar PV
- EV Chargers or vehicles
- Any measures not included in the assessment or that fail cost-effectiveness criteria
Loan Terms:
- Interest Rate: 0%
- Loan Cap: $25,000
- Term Length: 5 years
- Repayment: Managed by lender
- Disbursement: Two party check issued to homeowner and contractor