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PACE, On-Bill, and MaineHousing Loans
An honest guide to financing energy improvements in Maine. Unlike Massachusetts and Connecticut, Maine does not have a statewide zero-interest loan. Here are your actual options and how they compare.
Updated February 2026
Unlike Massachusetts (HEAT Loan, 0% APR for 7 years) and Connecticut (Smart-E Loan, 0.99% APR for 15 years), Maine does NOT have a statewide zero- or near-zero-interest energy efficiency loan. This is a notable gap in Maine's program offerings.
Best option for most homeowners: For most homeowners, PACE (if available in your municipality) offers the best combination of long terms and reasonable rates. Income-qualifying households should explore MaineHousing energy loans.
Each option has distinct advantages and limitations. Choose based on your project size, income, and municipality.
Property owners in participating Maine municipalities
CMP and Versant customers — limited program availability
Income-qualified homeowners (generally below 80% AMI)
Based on credit score and income/equity
How Maine's financing options compare to neighboring New England states. Maine has a clear gap in low-interest financing.
Best available loan program by state
Maine's best statewide option (PACE at ~6% APR) costs significantly more in interest than MA's 0% HEAT Loan or CT's 0.99% Smart-E Loan. Maine's on-bill financing is 0% but limited to $4,000 for 24 months.
The key to affordable energy improvements in Maine is stacking EMT rebates with financing. Rebates reduce the principal, then you finance the remainder. Here is a real example:
Finance $18,150 via PACE: At 6% APR for 15 years = ~$153/month. Your oil savings of $200-$300/month make this cash-flow positive from day one for most oil-heated Maine homes.
Section 25C (heat pumps, insulation) and 25D (solar) expired December 31, 2025. They provide $0 in 2026. Previously, you could use the 25C credit to pay down your loan balance. In 2026, EMT rebates are your only cost reduction before financing the remainder.
No. Unlike Massachusetts (HEAT Loan at 0% APR for 7 years) and Connecticut (Smart-E Loan at 0.99% APR for 15 years), Maine does NOT have a statewide zero- or near-zero-interest energy efficiency loan. This is a notable gap in Maine's program offerings. The closest option is the limited on-bill financing at 0% APR, but it caps at $4,000 for 24 months and is not always available.
PACE (Property Assessed Clean Energy) is a financing mechanism where loans for energy improvements are repaid through an assessment on your property tax bill. In Maine, PACE availability depends on whether your municipality has opted in. Not all towns participate. Contact your municipal office or Efficiency Maine at 866-376-2463 to check if PACE is available in your area. PACE rates are typically 5-7% APR with terms up to 20 years.
MaineHousing offers below-market-rate energy loans at 4-6% APR for up to $15,000 with terms up to 15 years. These loans cover heat pumps, insulation, windows, and heating system replacements. They are only available to income-qualified homeowners -- generally below 80% AMI. Applications are processed through MaineHousing and can take 4-8 weeks.
Yes. You can stack EMT rebates (80% off insulation, $1,000-$3,000 HP rebates) with any financing option. The rebate reduces your project cost, and you finance the remaining balance. For example, a $5,000 insulation project with 80% EMT rebate leaves $1,000 out of pocket, which you could finance through PACE, on-bill, or commercial lending.
Efficiency Maine's on-bill financing adds loan payments to your monthly CMP or Versant electric bill at 0% interest. However, this program has significant limitations: maximum of $4,000, term of only 24 months, limited availability (not always funded), and only through participating contractors. It is best for small projects like a single heat pump or minor insulation work.
No. The Section 25C (heat pumps, insulation) and 25D (solar) federal tax credits expired December 31, 2025 and provide $0 in 2026. You can stack EMT rebates with your chosen financing, but there is no federal credit to reduce your cost further.
For most homeowners, PACE (if available in your municipality) offers the best combination of long terms (up to 20 years) and reasonable rates (5-7% APR). PACE stays with the property on sale, requires no personal credit qualification, and covers a wide range of improvements. Income-qualifying households should explore MaineHousing loans for below-market rates. For small projects under $4,000, on-bill financing at 0% is ideal when available.
NuWatt Energy provides this guide as an educational resource. Financing details are sourced from efficiencymaine.com, MaineHousing, and the Maine PUC. Verify current availability by calling EMT at 866-376-2463.
80% off insulation. Finance the remaining 20%.
$1,000-$3,000/unit reduces your financing needs.
$850 off brings net cost down for financing.
Full cost breakdown after EMT rebates.
Enhanced rebates and MaineHousing loans.
Complete overview of all Efficiency Maine programs.
Stack EMT rebates with PACE or MaineHousing financing. Start by scheduling your HESP assessment to identify which improvements will save you the most.