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The best energy financing deal in Massachusetts. Zero interest, zero fees, and income-tiered terms (3, 5, or 7 years). Covers heat pumps, insulation, weatherization, and more.
Last updated February 2026 | Federal 25C tax credit EXPIRED Dec 31, 2025
Everything you need to know about the HEAT Loan in six facts.
Interest Rate
0%
Truly zero interest — no dealer fees, no hidden costs
Maximum Amount
$25,000
Can cover most residential heat pump installations
Shortest Term
3 years
For households above 300% SMI
Longest Term
7 years
For households below 135% SMI
Origination Fee
$0
No fees of any kind
Prepayment Penalty
None
Pay off early anytime with no penalty
Starting in 2026, HEAT Loan terms are now based on your household income relative to State Median Income (SMI). Previously, every borrower received a 7-year term. Now:
The interest rate remains 0% for all income levels. Only the repayment period has changed.
Same 0% interest rate for everyone. Your income tier only determines how long you have to repay. Lower income means lower monthly payments.
| Income Tier | Term | $10,000 Loan | $15,000 Loan | $25,000 Loan |
|---|---|---|---|---|
Below 135% SMI Below ~$112,000 for family of 4 | 7 years (84 months) | $119/mo | $179/mo | $298/mo |
135%–300% SMI ~$112,000–$249,000 for family of 4 | 5 years (60 months) | $167/mo | $250/mo | $417/mo |
Above 300% SMI Above ~$249,000 for family of 4 | 3 years (36 months) | $278/mo | $417/mo | $694/mo |
All tiers pay the exact same total. A $15,000 HEAT Loan costs exactly $15,000 to repay regardless of your term length. The only difference is how much time you have to pay it back. No interest is ever charged.
Six steps from first call to approved financing. Most contractors handle the paperwork for you.
Call 866-527-7283 or schedule online at masssave.com. Assessment takes 2-4 hours.
Your assessment report includes a list of qualified contractors in your area.
Equipment must be on the Mass Save Qualified Product List (QPL). No R-410A systems.
Most contractors handle the loan paperwork. Approval typically takes 2-5 business days.
Contractor installs equipment, submits documentation to Mass Save for rebate processing.
0% interest for the full term. Payments auto-deducted monthly from your bank account.
The HEAT Loan finances a wide range of energy improvements. All items must be recommended during your Home Energy Assessment and installed by a Mass Save participating contractor.
How the HEAT Loan compares to common alternatives. On a $15,000 loan, the savings are dramatic.
| Feature | HEAT Loan | Solar Loan | Personal Loan | HELOC |
|---|---|---|---|---|
| APR | 0% | 7.5% | 9% | 8.5% |
| Fees / Points | $0 | ~$330 (2.2%) | $0 | ~$300 (2%) |
| Term | 3-7 years | 20 years | 7 years | 10 years |
| Total Cost on $15K | $15,000 | $31,200 | $20,100 | $21,800 |
| Extra Cost vs HEAT Loan | $0 | +$16,200 | +$5,100 | +$6,800 |
When you work with a Mass Save network contractor, the HEAT Loan application is built into the proposal process. No separate bank visit required.
The federal Section 25C energy efficiency tax credit expired December 31, 2025. There is no federal tax credit for heat pumps, insulation, or weatherization in 2026. The HEAT Loan at 0% interest combined with Mass Save rebates is now your primary cost-reduction pathway.
The HEAT Loan (Home Energy Assessment and Treatment Loan) is a 0% interest financing program offered through Mass Save. It provides up to $25,000 for qualifying energy improvements including heat pumps, insulation, air sealing, heat pump water heaters, and weatherization. There are no origination fees, no closing costs, and no prepayment penalties. The loan is serviced by Mass Save partner lenders such as Berkshire Bank and Cambridge Savings Bank.
Any Massachusetts homeowner who is a customer of a Mass Save participating utility (Eversource, National Grid, Unitil, or Cape Light Compact) is eligible. You must complete a free Home Energy Assessment first, and the improvements must be performed by a Mass Save participating contractor using equipment from the Qualified Product List. There is no minimum credit score requirement published by Mass Save, but the partner lender will conduct a standard credit review.
Most HEAT Loan applications are processed within 2-5 business days. Your contractor typically handles the paperwork. You will need to provide income documentation to determine your loan term (3, 5, or 7 years based on your household income relative to State Median Income). The lender will notify you of approval and your specific term and monthly payment amount.
Yes. The HEAT Loan is designed to cover your net cost after all rebates are applied. For example, if your heat pump costs $16,000 and you receive $9,500 in Mass Save rebates, you can finance the remaining $6,500 at 0% interest for up to 7 years.
Yes. There is no prepayment penalty on the HEAT Loan. You can pay it off at any time with no additional cost. Since the interest rate is 0%, there is no financial benefit to paying it off early (you are not saving on interest), but you have full flexibility to do so if your financial situation changes.
The HEAT Loan is a personal obligation, not a lien on your property. If you sell your home, you are responsible for paying off the remaining balance at closing. The loan balance will typically be deducted from your proceeds. Since the improvements add value to the home, the net effect on your sale proceeds is generally neutral or positive.
In 2026, Mass Save shifted from a flat 7-year term for all borrowers to income-tiered terms: 7 years for households below 135% SMI, 5 years for 135-300% SMI, and 3 years for those above 300% SMI. This change was designed to make the program more equitable by giving lower-income households more manageable monthly payments while maintaining 0% interest for everyone.
No. The federal Section 25C energy efficiency tax credit expired on December 31, 2025. There is no federal tax credit for heat pumps, insulation, or weatherization in 2026. The HEAT Loan at 0% interest combined with Mass Save rebates is now your primary cost-reduction pathway in Massachusetts.
NuWatt is a Mass Save participating contractor. We handle the HEAT Loan paperwork, coordinate your rebates, and ensure your equipment is on the Qualified Product List. Start with a free assessment.
Mass Save HEAT Loan: 0% interest, $0 fees, up to $25,000. Call 866-527-7283 to schedule your Home Energy Assessment.