The Montgomery County Green Bank’s residential solar pilot program provides a model for crafting pro-climate financing initiatives.
Montgomery County, Maryland’s residential solar loan pilot program has far outpaced initial expectations, even as national demand for solar slows. Launched in partnership with OneEthos, Climate First Bank, and the Montgomery County Green Bank, the program originally aimed to issue 40–50 loans in its first year. By May, it had already approved 83 loans totaling more than $3 million. Key to its popularity is the loan’s structure: a 30-year term with no dealer fees and a low introductory rate of 4.99% for income-qualified borrowers, which increases to 7.
99% after 10 years. This design has helped make solar installations more accessible amid ongoing market uncertainty and a projected decline in installations in 2024.
The program illustrates how targeted, community-based initiatives can drive clean energy adoption even in uncertain policy environments. This initiative is especially important for state and local policymakers because it demonstrates how government, nonprofit, and private-sector partners can successfully collaborate to advance a key climate goal. As the federal government appears to be reigning in much of the climate infrastructure initially promised over the past several years, new models will be needed to combat climate change.
