What Does a “0% Interest HEAT Loan” Actually Mean?

If you’ve been exploring ways to upgrade your home heating and cooling system in Massachusetts, you’ve probably seen the phrase “0% interest HEAT Loan” pop up in rebate guides and contractor quotes. It sounds almost too good to be true — financing a major home upgrade with zero interest?

But it’s real. It’s a great way for homeowners to make heat pump upgrades and transition to an all-electric home, without the high upfront cost.

Let’s break down exactly what the HEAT Loan is, how it works, and what it means for you.

What Is the HEAT Loan?

The Mass Save™ HEAT Loan is a no-interest financing program offered to eligible homeowners who want to make energy-efficient upgrades to their homes. It’s designed to remove the upfront cost barrier that often prevents homeowners from switching to heat pumps.

You can borrow up to $25,000 for qualifying systems and pay it back over up to 7 years — with 0% interest. It’s important to note that your household income can impact the length of your loan.

What Can It Be Used For?

HEAT Loans cover a wide range of energy upgrades. These include:

Air-source and ground-source heat pumps
High-efficiency central AC
Insulation and weatherization
High-efficiency heating systems
Solar hot water systems

How Does 0% Interest Work?

Here’s what it means in plain terms:

If you borrow $20,000, you pay exactly $20,000 over the life of the loan.
No interest. No hidden fees. Just fixed monthly payments.
Example: A $20,000 loan over 7 years = ~$238/month.

The loan is administered through participating banks and credit unions, so you apply with one of their partners after getting a HEAT Loan Authorization Form from Mass Save.

How to Get a HEAT Loan for Your Heat Pump Project

Get a Home Energy Assessment
Schedule a free Home Energy Assessment through Mass Save. This is required to qualify.
Work with a Qualified Contractor
Your qualified contractor (like Forge) will help design the system and provide the paperwork you need to submit to Mass Save for the loan.
Complete Your Loan Application with Mass Save
You will need to include your signed contractor proposal and any additional required documentation on your Mass Save loan application. If your project meets the eligibility requirements, you will receive an Authorization Form from Mass Save.
Apply for the Loan with a Participating Lender
Submit the Authorization Form from Mass Save to a participating lender and apply — approval typically happens within 7 business days.
Provide the Contractor with the HEAT Loan Check(s)
After your energy efficiency project is scheduled and/or completed, you’ll pay your contractor by signing over the loan check(s) issued by your lender. The timing of when those checks are collected may vary, so be sure to confirm the details with your contractor directly.

Why It’s a Big Deal for Homeowners

Let’s be honest — switching to a heat pump system is a smart investment, but it’s still a big expense upfront. The HEAT Loan lets you:

Upgrade your comfort without draining your savings
Spread payments over time with zero added cost
Still take advantage of rebates and federal tax credits
Lock in energy savings from day one

Final Thoughts

The 0% interest HEAT Loan is one of the most homeowner-friendly financing tools available today. It’s designed to make your path to energy efficiency simpler, smarter, and more affordable — whether you’re ready to go all-electric or just starting the journey.

Thinking about a heat pump this year? We can walk you through the entire process, from rebates to financing to install. Connect with us at forgeheatpumps.com.