May 4, 2012 MassSave HEAT Loan Program Changes

HEAT Loan Program Changes

Conservation Services Group has informed us of some important changes to the HEAT Loan Program, effective April 30, 2012. The changes provide more flexibility with the eligibility requirements, which will allow more of your clients and customers to more easily participate in the HEAT Loan Program. Additionally, the measures eligible for financing through the program have expanded.

The HEAT Loan Program is intended to assist qualified residential customers with the installation of eligible energy efficiency improvements in their homes, and since 2006 the HEAT Loan Program has financed over $94 million dollars of energy efficiency improvements. Improvements eligible for financing include high efficient heating and cooling equipment and domestic hot water systems, heating equipment using natural gas, oil, propane, and heat pumps.

HEAT Loan Program Streamlining and Changes – Effective April 2012:

  • The elimination of the heat loss calculation requirement for fossil fuel heating equipment. Manual J Sizing will only be required for heat pumps and central air conditioning equipment.
  • AFUE efficiency requirements for natural gas and propane equipment have increased in 2012.
  • The requirement for the loan checks to be two party checks has been eliminated. Lenders will provide the customer with a one party or two party loan check depending on the lender. The customers will be responsible for contractor payment.
  • Central air conditioning can now be financed providing the new equipment qualifies for COOL SMART rebates, and Quality Installation Verification testing is performed. This is for replacement and new systems.
  • All residential electric, individually metered condo units are eligible to apply for HEAT Loan financing for eligible measures. Condos that are master metered or heated with propane or oil in condo complexes are NOT eligible to participate in the HEAT Loan Program.

To Be Eligible to Apply for the HEAT Loan, Customers Must:

  • Be a current resident in the territories of National Grid Electric, NSTAR, or other participating utilities.
  • Be the owner of a residentially metered 1-4 unit house that is served by the Mass Save® Home Energy Services Program
  • Be the owner of a residential individually metered condo unit served by the utility’s Multifamily Program and heated with Natural Gas or Electricity. (see the details below)

Loan Features:

  • Loans are available from $500 to $25,000
  • 0% Financing for loan terms up to 7 years
  • Financing is for both owner occupied and non-owner occupied residences
  • Payment will be either one party check or two party checks depending upon the lender.
  • No prepayment penalty
  • Loan approval is determined by the Participating Lender

Key Points about the HEAT Loan Program:

  • Not all customers may be eligible for the program. Municipal Light utility customers who heat with NSTAR or Columbia Gas are eligible to apply for this program. Refer to the Eligibility and Loan Options sheet on the HEAT Loan section of
  • Customers living in a 1-4 unit house must first complete a Mass Save Home Energy Assessment to be eligible. To schedule an appointment they need to call 866-527-SAVE(7283).
  • Customers living in condo complexes should call the state-wide MMI number—1-800-594-7277 and state that they want to participate in the HEAT loan program. The MMI representative will submit the customer information to the multifamily utility vendor and the HEAT loan administrator.
  • All eligible energy improvements must meet the required efficiency thresholds set forth by the Program in order to be financed (i.e. AFUE, U-value, and EF ratings). These thresholds are listed on the enclosed Minimum Standards Forms. Contractor proposals should state the make, model numbers and the efficiency ratings for all equipment being installed.
  • Turn around is quick this time of year:
  • Home Energy Assessments are generally completed within 5-10 days
  • Loan authorization review and production generally takes 24 hours, as long as proposals are complete and include all required information
  • Lenders generally take 1-3 days to do loan determination and produce the loan check
  • More information and a Participating Lender list is available online at Over 47 lenders are now participating in the program.