Home energy efficiency improvements range from very little in cost to quite a lot depending on the type of work needed.  Caulking windows and wrapping a water heater cost less than $50, while replacing the insulation in an attic or sealing a crawlspace may cost thousands.  Homeowners benefit either way due to high return on investment of these measures, but in some cases homeowners turn to financing programs to get the work done, helping to lower their monthly energy costs and improve the value of their home.

Home buyers interested in improving the energy efficiency of a prospective home should consider an Energy Efficient Mortgage.  This type of mortgage includes capital to help pay for the needed energy efficiency improvements.  It works because those very improvements will lower the home’s operating costs and make the monthly bills easier to pay, resulting in your loan being more attractive to lenders due to the lower default risk.  Once improved, the home also carries a higher value in the market.

Financing options can be a crucial piece of the energy efficiency upgrade puzzle. With that in mind, Fannie Mae recently modified its energy improvement mortgage loan program to encourage homeowners to make energy-saving upgrades to their homes. HomeStyle Energy provides opportunities to finance new energy improvements or pay off previous debt incurred to increase the efficiency of their homes. A key adjustment to the program is the addition of DOE’s Home Energy Score reports to the line-up of approved reports when one is needed. This addition offers homeowners a quick, reliable, affordable approach for estimating a home’s expected energy use. The Home Energy Score also provides recommendations for cost-effective energy improvements.

Need more information?  Here are a few resources describing various energy efficiency financing options:

Looking to finance energy efficiency or renewable energy improvements in your home?  These institutions provide financing options to NC residents:

  • FHA Loan Program: Click here to learn how the Energy Efficient Mortgage Loan program helps current or potential homeowners significantly lower their monthly utility bills. Energy efficient improvement costs can be incorporated into an FHA loan.
  • Kilowatt Financial: Kilowatt Financial makes clean energy accessible and affordable for more homeowners throughout the United States. By putting our credit expertise to work, we are able to provide flexible solar and energy efficiency financing through easy-to-understand options that fit most consumer budgets. With responsible corporate values and dedication to our customers, business partners and lenders, Kilowatt is rapidly becoming a leading clean energy-focused consumer finance company in the US.
  • Renew Financial: Renew Financial is pioneering new innovations in financing that are helping efficiency and renewable energy contractors grow their business while promoting energy independence. We can’t make big changes by thinking small. Join our team and be part of the efficiency solution.
    • Homeowners: Efficiency improvements and renewable energy projects pay over the long run in comfort and utility savings. So why should you have to pay for them upfront?  Renew Financial has pioneered efficiency financing to allow homeowners to borrow 100% of project costs and pay over the course of up to 25 years. In many cases, your monthly savings will be greater than your monthly repayment amount.
    • Contractors: We have several low-cost financing options for you to offer your customers. Together, they provide coverage for the majority of homeowners you serve.
  • Mosaic:  Mosaic is the first peer-to-peer lending platform for solar power. We provide borrowers access to affordable solar loans, investors opportunities to invest in renewable power, and clean energy supporters the power to spread wealth from the sun to their communities. Mosaic is enabling thousands of people to profit from the ongoing transition to a better energy future.  Mosaic has been honored by Fast Company as a top ten most innovative company in energy for two consecutive years, by the Department of Energy as a SunShot Grant recipient, The Sierra Club as the Trailblazer Company of the Year, and Verizon Wireless as the environmental winner for their Powerful Answers Award.
  • Renovate America:  Renovate America is leading the way in making homes and communities more energy and water-efficient. We partner with cities and counties to provide innovative new financing solutions that help save energy, lower utility bills, reduce emissions, create new jobs and increase property values. We created the HERO Program, which has become the fastest growing energy efficiency financing solution in the country. With over $1.5 billion in funded projects in the program’s first 4 years, HERO is setting records nationwide.
  • GreenSky:  We provide a wide range of credit products to meet the needs of customers in multiple markets.  Our plans and products can be used to finance Home Improvement projects, including: remodeling, roofing, HVAC, siding, solar panel installs, electrical, decks, patios, and more.  We make it easy for businesses of all sizes to offer credit to their customers anywhere and everywhere.  With great credit plans, high approval rates and fast funding, the GreenSky® program is dedicated to helping you grow your business.