With Fall and Winter Around the Corner, Heat Pumps Offer Cost-Effective Heating and Cooling Options

If you're a Connecticut homeowner thinking about a heat pump before winter, there's a discount on financing worth knowing about. The Connecticut Green Bank, working with Energize CT and local lenders, is offering a reduced 1.99% interest rate through December 31, 2026 on its Smart-E loan program for heat pump projects. This covers air source heat pumps, ducted or ductless mini splits, geothermal heat pumps, and heat pump water heaters. Heat pumps use electricity to both heat and cool a home, often more efficiently than furnaces or traditional air conditioners.

The special rate applies to loans up to $25,000 with 5-year terms and no penalty for paying them off early. To qualify, you need to be an Eversource or Avangrid electricity customer, and your project must be approved for an Energize CT heat pump rebate. A previous version of this offer, running from September 2025 through July 2026, generated more than $8 million in financing across over 350 loans.

Beyond heating and cooling, Smart-E loans can also finance more than 90 other home upgrades, including solar panels, insulation, windows, wells, septic systems, and health and safety improvements. More than 10,000 homeowners have used the program so far to lower energy bills and improve comfort in their homes. Details on eligibility, participating contractors, and lenders are available through the Connecticut Green Bank's website.