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The MassCEC Mass Solar Loan program ended in 2020. This guide covers the solar financing options available today: solar loans (5.5-8% APR), installer 0% promo financing, and PPA/lease with Section 48 ITC.
The MassCEC Mass Solar Loan program, which offered interest rate buy-downs (as low as 0%) on residential solar loans, ended in 2020 after successfully financing thousands of solar installations across Massachusetts. If you are searching for current solar financing information in MA, the options available today are detailed below.
Mass Solar Loan was a solar financing program administered by the Massachusetts Clean Energy Center (MassCEC). MassCEC used public funds to buy down the interest rate on solar loans issued through participating local lenders. Income-qualified borrowers could get 0% interest, while others received below-market rates. The program was a pioneer in accessible solar financing and helped drive solar adoption in Massachusetts.
Note: If you have an existing Mass Solar Loan from before 2020, your loan terms are unaffected. Contact your lender for questions about your account.
5.5-8%
Loan APR
Current market rate
$0
Down Payment
Loan, PPA, or lease
30%
Sec 48 ITC
PPA/lease only
$0.03
SMART/kWh
20 years of payments
The federal residential solar tax credit (Section 25D) expired December 31, 2025. $0 federal credit for cash or loan purchases in 2026. No credit to reduce your loan balance.
PPA and leases can still access the Section 48 commercial ITC (30%) because the system owner (a company) claims the credit. This allows them to offer lower rates. Loan buyers cannot claim any ITC.
SMART 3.0 payments ($0.03/kWh base, $0.06 low-income) for 20 years + 1:1 net metering credits significantly offset monthly loan payments, though at current rates (5.5-8%) most homeowners will be near monthly break-even rather than cash-flow positive from day one as with the old 0%.
Decide between a solar loan (you own it, 5.5-8% APR), installer promo financing (0% for 12-18 months), or PPA/lease ($0 upfront, owner claims 30% Sec 48 ITC). Each option has different trade-offs.
Request quotes from 2-3 solar installers in MA. Ask each to break down financing options including loan terms, PPA rates, and promotional offers. Compare total cost of financing, not just monthly payment.
For loans: apply through local credit unions (DCU, Rockland Trust) or solar lenders (Mosaic, GreenSky, Sunlight). For PPA/lease: the installer handles the process with their financing partner. Approval typically takes 1-2 weeks.
Regardless of financing type, your installer will enroll you in SMART 3.0 for production payments ($0.03/kWh base, $0.06 low-income) for 20 years. If you own the system, you keep 100% of these payments.
Monthly SMART 3.0 payments + 1:1 retail-rate net metering credits (~$0.28/kWh) significantly offset your monthly payment. At current rates, most homeowners are near monthly break-even, with the system fully paying for itself in 8-11 years.
Scenarios assume 6.5% APR solar loan, 15-year term, $0 down. SMART at $0.03/kWh base rate. Net metering at $0.28/kWh average rate. Payments do not include the former Mass Solar Loan subsidy (which ended in 2020).
| System Size | Total Cost | Monthly Payment | SMART Monthly | Net Metering Monthly | Total Benefit | Net Monthly |
|---|---|---|---|---|---|---|
| 8 kW | $24,800 | -$216 | +$24 | +$183 | +$207 | -$9/mo |
| 11 kW | $34,760 | -$303 | +$33 | +$251 | +$284 | -$19/mo |
| 15 kW | $47,400 | -$413 | +$45 | +$342 | +$387 | -$26/mo |
Result: At current loan rates (6.5% APR), loan owners are near monthly break-even, with only $9-26/mo in net cost after SMART and net metering. The key difference: you own the system and build equity. These numbers improve over time as electricity rates rise 3-5% annually, turning the small net cost into positive cash flow within 2-3 years.
Compare the three main solar financing options available in Massachusetts today. The former MassCEC Mass Solar Loan (0% interest) is no longer available.
| Feature | Solar Loan | Installer Promo | PPA / Lease |
|---|---|---|---|
| Interest Rate | 5.5-8% APR | 0% (12-18 months) | N/A (fixed $/kWh or $/mo) |
| Down Payment | $0-10% | $0 | $0 |
| Term | 10-25 years | 12-18 mo promo, then 5-8% | 20-25 years |
| System Ownership | You own it | You own it | Third party owns it |
| SMART 3.0 Income | You keep 100% | You keep 100% | Owner keeps it |
| Net Metering Credits | You keep 100% | You keep 100% | Discount on bill only |
| Section 48 ITC (30%) | No (homeowner cannot claim) | No (homeowner cannot claim) | Yes (third-party owner claims) |
| 25-Year Total Savings | $38,000-48,000 | $42,000-52,000 | $20,000-35,000 |
Even without the old Mass Solar Loan 0%, solar loans give you system ownership. You keep 100% of SMART and net metering. On a $34,760 system (11 kW), you will pay ~$10,600 in interest at 6.5% APR over 15 years, but the $75,600+ in net metering credits over 25 years more than compensate.
Without the residential ITC (25D dead) and without the Mass Solar Loan subsidy, the gap between loan and PPA/lease has narrowed. PPA/lease can access the Section 48 ITC (30%), reducing their rate to you. If you do not want maintenance responsibility or do not qualify for a good loan rate, PPA/lease is a solid option.
Unlike PPA or lease, a solar loan gives you full system ownership. Here are your income streams for a typical 11 kW system:
$396/yr
$7,920 (20yr)
$0.03/kWh x 13,200 kWh/yr x 20 years
~$3,024/yr
$75,600+ (25yr)
1:1 retail rate credit. Grows with rates (3-5%/yr)
$1000
One-time
15% of system cost, capped at $1,000. Form 1 Schedule EC
~$2,571 yr 1
$10,095 (20yr)
Sales (6.25%) + property (20yr) exemptions
Estimated 25-Year Savings with Solar Loan (11 kW)
$113,067+
Includes SMART, net metering, tax exemptions. Payback: ~7 years. Monthly benefit: ~$374/mo.
MA electric utility customer (Eversource, National Grid, or Unitil)
Homeowner (property must be residential)
Credit score 640+ (varies by lender)
Acceptable debt-to-income ratio
Property located in Massachusetts
Credit Unions: 5.5-6.5% APR
DCU, Rockland Trust, and other local MA credit unions. 10-20 year terms.
Installer Promo: 0% for 12-18 months
Through GreenSky, Mosaic, Sunlight. Then converts to 5-8% APR. Read fine print on deferred interest.
HELOC: 6-8% APR
Home equity line of credit. Interest potentially tax-deductible. Requires home equity.
Without the old Mass Solar Loan (0%) or the residential ITC (25D dead), the gap between loan and PPA/lease has narrowed. PPA/lease can access the Section 48 ITC (30%), but loans give you ownership and higher long-term savings.
25-year savings: $38,000-48,000
25-year savings: $25,000-35,000
25-year savings: $20,000-30,000
The Mass Solar Loan was a state-backed solar financing program administered by the Massachusetts Clean Energy Center (MassCEC). MassCEC used public funds to buy down the interest rate on solar loans issued through participating local lenders, resulting in below-market or 0% interest rates for qualifying homeowners. The program ended in 2020 after successfully financing thousands of residential solar installations across Massachusetts.
No. The Mass Solar Loan program ended in 2020. MassCEC no longer offers interest rate buy-downs on solar loans. Current solar financing options in Massachusetts include standard solar loans (5.5-8% APR) from banks and credit unions, installer promotional financing (some offer 0% for 12-18 months), and third-party ownership through PPA or lease agreements where the system owner claims the Section 48 ITC (30%).
No. The federal residential solar tax credit (Section 25D) expired on December 31, 2025, under the OBBBA signed July 4, 2025. Cash and loan buyers get $0 from the federal government in 2026. However, if you go with a PPA or lease, the third-party system owner can claim the Section 48 commercial ITC (30%) and pass savings to you as a lower rate. For loan buyers, savings come from SMART 3.0 payments, 1:1 net metering credits, and MA state tax exemptions instead.
SMART 3.0 pays $0.03/kWh (or $0.06/kWh for low-income) for 20 years on all solar production. For an 11 kW system producing ~13,200 kWh/year, that is $396/year ($33/month) at the base rate. Combined with net metering credits (~$3,024/year for 11 kW at $0.28/kWh), your total monthly benefit is about $284/month. At current loan rates (6.5% APR), your payment on an 11 kW system is roughly $303/month, meaning you are only about $19/month out of pocket while building equity in a system that pays for itself over time.
The best solar loan options in MA include: (1) Credit union solar loans at 5.5-6.5% APR with 10-20 year terms from institutions like DCU or Rockland Trust. (2) Installer promotional financing offering 0% APR for 12-18 months, then converting to 5-8% APR. (3) Home equity loans or HELOCs at 6-8% with potential tax-deductible interest. (4) GreenStar or Mass Save-adjacent energy improvement loans. Compare total cost of financing over the full term, not just the promotional rate.
It depends on your priorities. A solar loan gives you system ownership, meaning you keep 100% of SMART income and net metering credits, and you build home equity. Over 25 years, ownership typically saves $10,000-20,000 more than a PPA or lease. However, PPA/lease offers $0 down with zero maintenance responsibility, and the third-party owner can claim the Section 48 commercial ITC (30%), passing savings to you as a lower rate. Without the old Mass Solar Loan 0% rate, the gap between loan ownership and PPA/lease has narrowed, making PPA/lease more competitive in 2026 than before.
Solar systems in Massachusetts increase home value by approximately 4% on average. The remaining loan balance can typically be paid off at closing from the proceeds of the sale, since the added home value from solar exceeds the remaining loan balance in most cases. The property tax exemption (20 years) transfers to the new owner, making the home more attractive to buyers. Some loan agreements also allow assumption by the buyer.
Some solar installers in Massachusetts offer promotional 0% APR financing for 12-18 months through partnerships with lenders like GreenSky, Mosaic, or Sunlight Financial. After the promotional period, the rate typically converts to 5-8% APR for the remaining term. This is different from the old Mass Solar Loan, which offered 0% for the full term. Installer promos can be valuable if you plan to pay off most of the balance during the 0% period, but read the terms carefully regarding deferred interest.
NuWatt Energy helps you find the best solar financing option for your Massachusetts home. Get a free quote with personalized loan, PPA, and lease comparisons.
Questions? Call (888) 555-0199 - MA solar experts available Mon-Fri 9am-6pm.