IN THE TRANSITION to clean energy, low- to moderate-income homeowners in Massachusetts have the odds stacked against them. Our state has the second-oldest housing stock in the country, along with some of the highest utility prices.  

A study from the American Council for an Energy-Efficient Economy shows that low-income Black, Hispanic, and Native American households face dramatically higher energy burdens – spending a larger share of their income on energy bills – than the average household. At the same time, this historically expensive market means more homeowners are seeking to improve where they already live instead of purchasing a new house. 

Programs for those types of energy improvements have largely focused on electrifying or decarbonizing units in larger multifamily buildings rather than on single-family homes — even though 1-4 family homes count for 60 percent of building emissions. Plus, higher-income borrowers tend to be the ones to take advantage of existing incentive programs, while low-income communities are vulnerable to predatory lending practices — particularly amid the confusing nature of solar leasing programs.  

Given that Massachusetts wants to reach net zero greenhouse gas emissions by 2050, we need to make clean energy improvements possible for every homeowner. We can’t afford to leave anyone behind. 

The answer: flexible, innovative financing options that empower homeowners — the ones who had been excluded from the chance to upgrade their homes — to make energy improvements that save money and cut emissions.  

Because of its ubiquity and quick return on investment, rooftop solar is an easy choice. When Nectar Community Investments designed and tested our Solar Plus pilot program in 2023, we had a chance to see what worked. The program included decarbonization assessments and subsidies, and three homeowners purchased solar panels and made other required energy-efficiency upgrades or retrofits required to get their homes ready.  

The Massachusetts Community Climate Bank is on the right track with the Energy Saver Home Loan Program, a new $20 million program that launched in April 2024 to help low- and moderate-income homeowners make clean energy improvements to their homes. After our Solar Plus pilot, we became an early participating lender in the Energy Saver program. We’re proud to partner with the Healey-Driscoll Administration, MassHousing, and others on this sustainable approach to financing green infrastructure. The Massachusetts Clean Energy Center’s Solar for All program is expected to be released this summer, and we look forward to participating in it. 

We’ve closed our first two homeowner loans through Energy Saver, but we know there’s more work to do. Just in our home city of Lawrence, there are more than 400 units heated by electrical baseboard and more than 2,000 units heated with oil, making them potential candidates for electrification and solar.  

Climate change is disproportionately harming these homeowners, and they need options to keep from falling behind. Flexibility and creativity in financing are exactly what we need to meet the moment before us. Our future depends on it.  

Glynn Lloyd is the executive director of Nectar Community Investments, a community development financial institution headquartered in Lawrence. He also serves on the Commonwealth’s Energy Transformation Advisory Board.