Press Release  Healey-Driscoll Administration Launches Interest-Free Loans for Home Energy Upgrades

Boston — The Healey-Driscoll Administration today announced the launch of a new $9.7 million zero-interest loan program to help eligible homeowners served by city- and town-owned utilities pay for energy-saving home improvements.

These local utilities, known as municipal light plants, serve more than 50 cities and towns across Massachusetts. Many of their customers cannot use the Mass Save® interest-free HEAT Loan. The new Municipal Light Plant Z-Loan fills that gap by offering a similar financing option.

Eligible homeowners can borrow up to $25,000 and repay the loan over as many as five years without paying interest. The loan can help pay for:

• Insulation
• Heat pumps
• Energy-efficient water heaters
• Work needed before those upgrades can begin, such as electrical repairs or the removal of mold or vermiculite

“We want more Massachusetts homeowners to be able to afford to make upgrades like insulation and heat pumps, which can significantly lower their energy bills,” said Governor Maura Healey. “This new interest-free loan will make it easier for homeowners served by municipal utilities to afford them.”

“Families should be able to get help making their homes more energy efficient, no matter who provides their electricity,” said Lieutenant Governor Kim Driscoll. “This program closes that gap and gives more homeowners an affordable way to pay for upgrades.”

“All Massachusetts residents deserve access to programs that can help lower their monthly bill and make their homes more comfortable year-round,” said Energy and Environmental Affairs Secretary Rebecca Tepper. “The new MLP Z-Loan will provide another affordable financing option, helping more residents make energy-saving improvements without the added cost.”

“We’re thrilled to work with MLPs to offer a program that will help their customers make home energy improvements like better insulation and modern, efficient HVAC and water heating equipment,” said Energy Resources Commissioner Elizabeth Mahony. “The Z-Loan can be used with existing MLP rebates and incentives, which will help customers make upgrades that create healthy, resilient homes for years to come.”

The program is available to owners of residential properties that receive electric or gas service from a municipal light plant and are not eligible for Mass Save programs. Before applying, homeowners must complete a qualifying home energy assessment. The assessment will identify recommended improvements that may be financed through the program.

To participate, homeowners should:

• Schedule a home energy assessment through Energy New England or NextZero, depending on their municipal utility.
• Ask a contractor for a proposal covering the recommended improvements.
• Apply for financing at www.myz-loan.com.
• Wait for approval from a participating lender before beginning any work.

"Municipal light plants have a long history of developing innovative programs that meet the needs of their local communities, including financing offerings in many service territories. The DOER Z-Loan Program strengthens those efforts by expanding access to zero-interest financing and creating new opportunities for customers to pursue energy efficiency and electrification upgrades,” said John Tzimorangas, President & CEO of Energy New England, LLC. “We appreciate DOER's partnership and commitment to ensuring MLP customers have access to resources that support affordability, reliability, and a cleaner energy future."

"MMWEC is pleased to work with DOER to help facilitate the new Z-Loan program for municipal light plant customers," said Massachusetts Municipal Wholesale Electric Company CEO Tom Barry. "Lower rates offered by the municipal light plants already encourage electrification, and the Z-Loan program will further reduce barriers to adoption for more residents."

“As Senate Chair of the Legislature's Municipal Light Plant (MLP) Caucus, and as the Senator representing four locally owned utilities in Westfield, Holyoke, Chicopee, and Russell, I am grateful to see this new zero-interest loan program launch for our MLP communities, which are at the heart of our neighborhoods providing reliable service," said Senator John Velis (D-Westfield), Senate Chair of the Legislature's MLP Caucus. "This initiative helps ensure that residents in MLP communities have access to the same opportunities for home energy efficiency upgrades as those served by larger utilities, closing a longstanding gap and supporting our shared commitment to sustainability and affordability.”

"As a long time supporter of our municipal light plants, I am pleased to see this program initiated. As many of us know, our municipal light plants are the backbone of reliable, locally driven power in many of our communities,” said State Representative Kimberly Ferguson (R-Holden). “For too long, MLP customers have had no access to zero-interest financing for critical home energy upgrades. The MLP Z-Loan levels the playing field, providing our residents the opportunity and assistance to make their homes more efficient, lower their energy bills, and invest in modern heating systems. I’m thankful that the Administration and DOER have worked alongside our municipal utilities to make this vital funding a reality."

For more information about the program and to view available lenders, visit the DOER MLP Z-Loan webpage.

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