BankFive Launched Interest-Free Energy Loan Program

Homeowners served by municipal power can now access up to $25,000 for energy-efficiency upgrades.

Updated on Oct. 7, 2026 in Utilities

Bold vector illustration of an outdoor heat pump unit, representing residential energy-efficiency financing programs in Massachusetts. — BankFive has launched a $9.7 million interest-free loan program specifically for homeowners in 50 Massachusetts municipalities to fund energy-efficiency upgrades like heat pumps. AI Illustration. Upload story photo >

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BankFive has introduced interest-free financing for residential energy-efficiency projects, targeting homeowners serviced by Municipal Light Plants (MLPs) across Massachusetts. The initiative, funded by the $9.7 million Z-Loan Program, aims to fill a coverage gap for residents ineligible for standard Mass Save incentives.

Why it matters

The program addresses a specific service gap for homeowners in the 50 Massachusetts municipalities operated by local light plants who were previously excluded from state-wide efficiency initiatives. By providing low-cost capital for hardware like heat pumps, the state aims to accelerate residential electrification.

The Z-Loan Program offers qualified homeowners up to $25,000 in financing with repayment terms of up to 5 years. BankFive, a $1.9 billion asset institution founded in 1855, is managing the capital for participants.

The players

BankFive

A Massachusetts-based financial institution with $1.9 billion in assets and 17 locations that provides commercial and retail banking services.

Healey-Driscoll administration

The current executive branch of the Massachusetts state government responsible for setting statewide energy, climate, and economic policy.

The details

Homeowners in areas served by Municipal Light Plants can apply for these interest-free funds to cover upgrades like insulation, heat pumps, and water heater installations. BankFive handles the underwriting and processing for these applicants at myz-loan.com. This financing model allows residents to bypass conventional high-interest consumer credit lines for energy improvements.

BankFive was founded in 1855.
The bank announced its participation in the Z-Loan Program in October 2026.

Market Landscape

This initiative functions as a specialized extension of Massachusetts' broader energy-efficiency infrastructure. It serves as a necessary gap-fill measure for those operating outside the utility service framework of the Mass Save program.

Contractors and service providers in MLP-serviced towns should familiarize themselves with the application process at myz-loan.com to assist clients in securing project financing. Owners should verify their local utility provider status before promising these terms to potential customers.

The takeaway

The Z-Loan Program provides a new, low-cost capital lever for residential energy contractors operating in municipal utility territories. Providers should monitor the available funding pool of $9.7 million to advise clients on the viability of immediate project financing.