BankFive Launched Interest-Free Energy Upgrade Loans
The bank has joined the $9.7 million Z-Loan Program to help Massachusetts homeowners fund energy-efficiency projects.
Updated on Oct. 7, 2026 in Utilities
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BankFive has begun offering interest-free loans to homeowners served by Municipal Light Plants for energy-efficiency upgrades. The initiative is part of the $9.7 million Z-Loan Program backed by the Healey-Driscoll administration.
Why it matters
This program fills a critical gap for residents who fall outside of existing Mass Save offerings, providing financial support for critical home improvements. It aims to increase the adoption of clean energy technology across the state by lowering the cost barrier for participants.
Qualified borrowers can access up to $25,000 for energy projects with repayment terms of up to five years. BankFive manages these funds across its 17 locations, supported by its $1.9 billion in total assets.
The players
BankFive
Founded in 1855, this financial institution manages $1.9 billion in assets and operates 17 locations across Massachusetts and Rhode Island.
Healey-Driscoll administration
This is the current state executive leadership of Massachusetts responsible for launching the Z-Loan Program.
The details
Homeowners in areas served by Municipal Light Plants can now apply for financing to cover expenses such as heat pumps, insulation, and water heaters. BankFive processes these applications for residents through a dedicated web portal to facilitate the upgrades.
Timeline
BankFive was founded in 1855.
The bank announced its participation in the Z-Loan Program in October 2026.
Market Landscape
This program positions BankFive as a key partner in regional green energy financing, extending the reach of state initiatives beyond the standard Mass Save program. It mirrors a broader industry shift where regional banks are increasingly underwriting sustainability-linked consumer loans.
Homeowners who previously could not access efficiency incentives may now upgrade appliances like water heaters and heat pumps at no interest. Applicants should verify their utility provider status before applying to ensure they reside in an eligible Municipal Light Plant area.
The takeaway
This initiative provides a viable pathway for homeowners to reduce utility costs while bypassing traditional interest-bearing debt. Residents are encouraged to prioritize efficiency projects that offer the longest-term utility bill savings.
Further reading
Learn more about local energy infrastructure and access resources on the Massachusetts Utilities section page.
More information
To review eligibility requirements or start your request, visit the Z-Loan Program homeowner application.
Source note: This article includes information reported by The Herald News.
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