Zero Percent Loan For My Heat Pump

User: kazuokev@hotmail.com

Vendor: Drive Green - Green Energy Consumers Alliance

Action: 3540 - Explore State & Federal Incentives

One incentive that I think doesn't get enough attention is the Mass Save HEAT loan (0% Interest Financing | Residential | Mass Save).   As indicated in the link, you can get a zero percent loan for qualified efficiency upgrades including the cost of a heat pump installation.  

I had a heat pump installed a few years ago, got a HEAT loan for the $17,000 cost of my heat pump at 0% interest for 7 years, resulting in 84 monthly payment of about $215.  At today's rates of about 7% for home equity loans, the same $17,000 would result in a monthly payment of about $300, so the HEAT loan is saving me about $85 a month for the life of the loan.  If you'd rather think of the upfront cost savings, I estimate the HEAT loan was equivalent to a $5,000 upfront discount, or about 29% of my upfront cost.  Keep in mind that the HEAT loan value is in addition to the current Mass Save rebate which could be as much as $16,000 and federal tax credit of up to $2,000.  (Air Source Heat Pumps | Residential | Mass Save)

So my advice: make sure you (or your installer) understand the after-incentives cost of a heat pump installation because that high upfront cost could be reduced by 80% by stacking the available incentives.