by Rich Marcello ·
Friday, June 26, 2026
Climate goals can sometimes feel distant. We hear about goals to reach net-zero emissions by 2050, but for most of us in Harvard, the transition starts at home. It happens when you’re considering new solar panels or weighing the cost of a new heat pump. It happens when you’re wondering if you can afford to winterize your home, even with the help of Mass Save. For many of us, the biggest hurdle to going green isn’t a lack of desire. It’s the upfront capital.
Fortunately, Massachusetts has a new program designed to help with the upfront costs, the Energy Revolving Loan Fund (under Massachusetts General Laws Chapter 44, Section 53E). In simple terms, the program allows towns like Harvard to borrow money at low municipal rates and lend it to homeowners to fund energy conservation and renewable energy upgrades. If we choose to adopt it, it could provide Harvard residents with an affordable pathway to take a step toward carbon neutrality in their homes.
Here’s a detailed look at how the program works. The fund is entirely community-driven. The process begins with our normal local democratic processes. Before the fund can be created, our Select Board must hold a public hearing. This will allow Harvard residents to voice their opinions, ask questions, and help shape the program. Once the public has given its input, the town must pass a bylaw to establish the fund.
Once the bylaw passes, the town must appoint a fund administrator. This could be a person or an existing board, like the Harvard Climate Initiative Committee. The administrator handles the day-to-day operations, signs the loan agreements, ensures the fund remains healthy, and submits annual transparency reports.
If Harvard adopts this fund, the financial assistance can be used for a wide range of practical upgrades. Here’s the list:
- Installing, repairing, or replacing solar panels
- Installing electric vehicle charging stations
- Removing oil tanks and transitioning the property from gas/oil to electric power
- Upgrading home insulation and replacing old doors and windows with energy-efficient models
- Replacing outdated heating and cooling units with heat pumps.
The fund can even cover preliminary costs, such as feasibility studies, architectural plans, or engineering services. To qualify for a loan, the property must first undergo an energy audit to ensure the upgrades are warranted.
A really cool part of the program is how the money is paid back to the fund. Instead of all the mechanisms associated with a traditional loan, property owners repay the loan directly through their property tax bill.
The loan is treated as a “betterment.” That’s a special tax assessment levied on property because the project has increased the property’s value. The town and the property owner agree on an interest rate at the start of the loan. Towns are encouraged to set the interest rate slightly higher than the rate the town paid to borrow the money to ensure the program is self-
sustaining.
Because the fund is revolving, the money isn’t lost once it’s spent. Residents pay back their loans through their tax bills, and that money flows right back into the fund, ready to be lent out to the next resident looking for an upgrade. The account rolls over from year to year, creating a continuous source of local green funding.
If you sell your property, the buyer can choose to assume the loan obligation. The new owner continues to make the payments through their tax bills while enjoying the energy savings. If a buyer doesn’t want the system, the seller is on the hook to pay off the loan and remove the upgrade. This outcome seems unlikely given the energy benefits of the new system, but it’s worth including here as something the town will need to debate.
I believe the Energy Revolving Loan Fund is a pragmatic, elegant approach to environmental action. It makes green technology accessible to everyday homeowners. If you want to see Harvard take advantage of this program, your voice is essential. Reach out to the Select Board to express your support.
Rich Marcello is a member of the Climate Initiative Committee. In writing his latest novel, “The Means of Keeping,” he spent several years researching the climate crisis.