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Get a Free QuoteThe Smart-E Loan through Connecticut Green Bank is two things at once: a subsidized 1.99% heat pump offer on a five-year term, and a standard multi-measure loan for everything else. No fees, no prepayment penalty, and terms up to 15 years on the standard product.
Heat pump APR
1.99%
Max Amount
$50,000
Term Options
5-15 Yr
1.99% heat pump offer effective 8/1/2026 — five-year term, up to $25,000, no announced end date. Non-heat-pump Smart-E (solar, insulation, battery): 6.99-7.99% APR depending on term.
On August 1, 2026 the Connecticut Green Bank replaced its heat pump financing offer. The rate is now 1.99% APR on a 5-year term, up to $25,000. Two things changed beyond the rate: the term menu collapsed to a single five-year option, and eligibility narrowed to Eversource and United Illuminating electriccustomers — gas-only customers are no longer eligible. An approved Energize CT heat pump rebate is now required before the loan.
The retired offer (0.99% on 5- and 7-year terms, plus a 2.99% ten-year tier up to $30,000) ended July 31, 2026. Amounts above $25,000, or loans bundling heat pump work with other measures, are written at a blended rate.
Read the full 1.99% heat pump loan guideThe Smart-E Loan is a below-market-rate financing program administered by the Connecticut Green Bank. It offers Connecticut homeowners access to unsecured loans of up to $50,000 specifically for energy efficiency and clean energy improvements. The program is funded through a combination of state energy funds and CT Green Bank capital, which subsidizes the interest rate far below what commercial lenders offer.
Unlike a HELOC or home equity loan, the Smart-E Loan does not put a lien on your property. There are no origination fees, no closing costs, and no appraisal required. It functions like a personal loan with the interest rate of a subsidized government program.
Everything you need to know about the Smart-E Loan in six data points.
Heat Pump Rate
1.99% APR
Five-year term, up to $25,000 — effective August 1, 2026
Maximum Amount
$50,000
Standard Smart-E. The 1.99% heat pump offer caps at $25,000.
Term Options
5-15 years
Standard Smart-E. The 1.99% heat pump offer is 5 years only.
Origination Fee
$0
No origination, application, or processing fees
Prepayment Penalty
None
Pay off early anytime with no penalty
Eligible Projects
12+ categories
Broadest eligible project list of any CT program
Standard Smart-E monthly payments for three common loan amounts, at each term's APR. Heat pump projects price separately at 1.99% over five years — see the offer section above. Every term includes zero origination fees and no prepayment penalty.
| Term | APR | $10K/mo | $25K/mo | $50K/mo |
|---|---|---|---|---|
| 5 years | 6.99% | $198 | $495 | $990 |
| 7 years | 6.99% | $151 | $377 | $754 |
| 10 yearsPOPULAR | 6.99% | $116 | $290 | $580 |
| 12 years | 7.49% | $105 | $264 | $527 |
| 15 years | 7.99% | $96 | $239 | $478 |
Context: what the heat pump buydown is worth. A $25,000 heat pump balance at the 1.99% offer costs about $1,285 in total interest over its five-year term, against roughly $5,057at a typical 7.50% unsecured home-improvement rate. Illustrative — longer standard-rate terms lower the monthly payment but raise total interest substantially.
Total cost of a $25,000 energy improvement, financed through different lending products. The Smart-E Loan saves thousands compared to every alternative.
| Financing Type | APR | Total Cost ($25K) |
|---|---|---|
| Smart-E Heat Pump OfferBEST | 1.99% | $26,285 |
| Personal Loan (avg) | 9.0% | $33,500 |
| HELOC (avg) | 8.5% | $36,800 |
| Credit Card (avg) | 22.0% | $45,000 |
| HVAC Dealer Financing | 5.99% | $34,200 |
Comparison assumes $25,000 borrowed over comparable terms. HELOC assumes variable rate; actual total cost varies. Credit card assumes minimum payments only. Smart-E total based on the 1.99% heat pump offer over its five-year term.
The Smart-E Loan covers 12+ categories of energy improvements — the broadest eligible project list of any CT program. If it saves energy or produces clean energy, it likely qualifies.
25% non-energy allowance: Up to 25% of the loan amount ($12,500 on a $50K loan) can cover non-energy improvements that support or enable the energy project, such as roof repairs before solar, electrical panel upgrades for heat pump installation, or structural work for geothermal. No other CT program offers this flexibility.
From initial assessment to your first payment, here is exactly how the Smart-E Loan process works.
For insulation and HVAC improvements, an HES assessment is typically required first. Solar projects may not need one.
Choose a contractor — they do not need to be Energize CT-specific for equipment, but must be licensed in CT.
Visit ctgreenbank.com/smarteloan to find participating lenders. Application is similar to a standard personal loan.
Minimum credit score varies by lender (typically 640+). Approval usually within 3-5 business days.
Once approved, schedule work with your contractor. Loan funds are disbursed to the contractor upon completion.
Your locked rate applies for the full term. Auto-pay available. No prepayment penalty.
You apply directly with a CT Green Bank participating lender — not through CT Green Bank itself. Current participating lenders include:
Full list at ctgreenbank.com/smarteloan
The real power of Smart-E is pairing it with Energize CT rebates. Get your rebate first — for heat pumps the approved rebate is required before the loan — then finance the remaining balance. Here are four scenarios at the rate each measure actually receives.
The Section 25C energy efficiency tax credit (heat pumps, insulation, water heaters) and Section 25D residential solar tax credit both expired December 31, 2025, under the OBBBA legislation signed July 4, 2025. Connecticut homeowners receive $0 federal tax credit for these improvements in 2026.
The Smart-E Loan and Energize CT rebates are the primary financial incentives remaining for CT homeowners.
NuWatt coordinates Smart-E Loan applications with every heat pump and energy improvement proposal. We help you identify the right loan term, calculate your actual out-of-pocket cost after Energize CT rebates, and connect you with participating lenders. Our goal is to make the financing process seamless so you can focus on the comfort and savings your project delivers.
Common questions about the CT Green Bank Smart-E Loan program.
As of August 1, 2026 the Smart-E heat pump offer is 1.99% APR on a five-year term, up to $25,000. It replaced the previous offer (0.99% on 5- and 7-year terms, plus a 2.99% ten-year tier), which ended July 31, 2026. The offer requires an Eversource or United Illuminating electric account and an approved Energize CT heat pump rebate before the loan. For solar, insulation, battery storage, and other Smart-E-eligible projects, the standard APR applies: 6.99% for 5-10 year terms, 7.49% for 12 years, and 7.99% for 15 years. No end date has been announced for the 1.99% offer — confirm current terms at ctgreenbank.com/smarteloan.
Most Smart-E participating lenders require a minimum credit score of approximately 640, though exact thresholds vary by lender. Some may accept slightly lower scores with strong compensating factors like low debt-to-income ratio, stable employment, or significant home equity. You apply directly with the participating lender, not through CT Green Bank.
Yes, and for heat pumps the sequence is mandatory: an approved Energize CT heat pump rebate is a precondition of the 1.99% offer. You receive the rebate first (such as $750 for a HPWH or 75% off insulation), then finance the remaining balance through Smart-E. Heat pump projects price at 1.99% APR over five years up to $25,000; solar, battery, and other non-heat-pump work uses standard Smart-E (6.99-7.99% APR). Mixed loans get a blended rate. The loan covers only your out-of-pocket cost after rebates.
No. You can pay off the Smart-E Loan early at any time with zero prepayment penalty. If you come into extra funds, you can make additional principal payments or pay off the balance entirely without any extra charges.
No. The Smart-E Loan is an unsecured personal loan. There is no lien on your property, no appraisal required, and no closing costs. Your home is not used as collateral. This is a key difference from a HELOC.
No. The 1.99% APR rate is a Connecticut Green Bank buydown specific to heat pump technologies — air-source heat pumps, mini-splits, geothermal, and heat pump water heaters. Solar PV systems are financed through standard Smart-E at a different rate (typically 6.99-7.99% APR). If a solar company quotes you 1.99% through Smart-E, that is a misread of the program. See our Smart-E Solar Financing guide for solar-specific loan details.
No. The federal Section 25C energy efficiency tax credit expired December 31, 2025, under the OBBBA legislation signed July 4, 2025. There is no federal tax credit for heat pumps, insulation, or water heaters in 2026. The Smart-E Loan and Energize CT rebates are the primary financial incentives available to CT homeowners.
Most Smart-E participating lenders provide approval decisions within 3-5 business days after receiving your complete application. Some lenders offer expedited decisions in 1-2 days. The loan process from application to fund disbursement (to contractor after work is completed) typically takes 2-4 weeks total.
Energize CT Standard and Energy Optimization rebates
What heat pumps actually cost in Connecticut
Smart-E rates specifically for solar (6.99-7.99% APR)
Compare rebates by CT utility territory
How to find and vet qualified installers
Models rated for CT winters down to -13F
Get a free quote for your energy improvement project and learn exactly how the Smart-E Loan reduces your monthly cost. No obligation, no pressure.
1.99% heat pump offer effective 8/1/2026 via CT Green Bank participating lenders, up to $25,000 on a five-year term. Requires an approved Energize CT heat pump rebate. Subject to credit approval.
