Despite the known financial advantages of direct ownership of residential solar PV as compared to leased systems or power purchase agreements (PPAs), the up-front cost of direct ownership has been a barrier to many homeowners. Many lenders were unfamiliar with making loans directly to homeowners for solar PV installations, limiting access to the needed low-cost finance. This put PV ownership out of reach for most lower credit or moderate- and lower-income households. New, private-sector financing options were needed to support a competitive marketplace and reach a broader range of customers.
The Massachusetts Department of Energy Resources and MassCEC developed the award-winning Mass Solar Loan program as a partnership with local banks and credit unions, enhanced by input from solar installers and other stakeholders. Mass Solar Loan reduced costs of ownership and expanded resident access to loan products by establishing a project standard, educating lenders, and providing loan support in the form of
As further detailed below, Mass Solar Loan helped 17 lenders issue nearly 5,800 loans, of which about 54% were to low- or moderate-income residents. Over 50 MW of residential solar projects were financed. Mass Solar Loan provided an opportunity for lenders to gain experience with this market, demonstrated the positive financial returns possible, and allowed lenders to expand their customer base.
To support additional lenders considering solar finance, MassCEC offers a Solar Lending Toolkit and Mass Solar Loan data dashboard.
