BOSTON–Massachusetts has rolled out a new incentive program to get state residents to make more use of solar power, and it is providing $30 million to local banks and credit unions in order to make loans. The funds are part of the state’s new “Mass Solar Loan Program,” which aims to have people own solar panels after installation rather than just lease them.
According to the state, the money will be used by financial institutions in three different ways:
- To reduce interest rates for homeowners who are borrowing money to install the panels.
- To create reserve accounts to encourage loans to borrowers with lower credit score.
- To reduce the principal of loans to borrowers with low and moderate incomes.
Under the new program, all participating lenders will offer loans ranging up to $35,000, and some will offer loans up to $60,000.
Participating credit unions include First Citizens’ Credit Union, Shrewsbury Federal Credit Union, and UMassFive Credit Union, and Weymouth Bank.
The state indicated that additional lenders are expected to also join the program. In Massachusetts, electric utilities and suppliers are required by state law to buy a certain amount of renewable energy each year, an amount that escalates every year.