Upgrading your home energy system doesn’t have to break the bank. Thanks to special rebates, deals, and strategies, lending institutions can help offset the financial burden of your renovation.
Below is some advice on how to get the most out of your home energy upgrade for the least amount of money. While new advances in technology have certainly lowered the cost of green energy design, financial planning is still highly recommended before committing to any one plan.
Learn About All Your Options
When many homeowners decide to make energy efficiency upgrades, they want to jump headfirst into construction. Hold on! For many people, renovations may require a little help in the financing department. A simple googling will show you that there is a large variety of financing options to help you along the way. The question is: which one is right for you?
With green energy becoming a government initiative, many states have created extremely accessible tools to sort out financing options and strategies. For instance, Energize Connecticut (an initiative of the Energy Efficiency Fund and the Connecticut Green Bank) provides complete transparency for the green energy financing world. Check out it’s Find A Lender system for a local financing organization.
The Connecticut Green Bank actually has it’s own lending offer. Their Smart-E Loan is a low-interest financing tool with flexible terms, no money down tool to help upgrade your home’s energy performance. The loans are specific to energy efficiency improvements and can be taken out through local lenders.
Check Out the EnergyLoan Program
One of the most popular financing options for homeowners is called the EnergyLoan program provided by Renew Financial. This payment plan allows you to improve the energy efficiency of your home without setting yourself up for financial ruin.
Before we talk more about EnergyLoan, it may be helpful to discuss the accolades of Renew Financial. On March 23, 2016, Renew Financial won the Environmental Finance award, recognizing its collaboration on the world’s first securitization of energy efficiency loans and creating an accessible energy efficiency market. Past awards, Renewal Financial is a healthy company; in February 2016, it raised $70 million in growth capital, enabling the company to accelerate its expansion into innovative clean energy financing. What this information shows is that Renew Financial and EnergyLoan are trustworthy entities, with security of investment that will ensure you don’t suffer if the economy does.
How? The EnergyLoan program targets key energy-saving upgrades for reduced fixed rates, such as: heating, air conditioning, insulation, window, doors, sliding, solar, and other improvements.
Even if your home improvement project branches out past energy efficiency—let’s say you want to replace the boiler and finish the basement — EnergyLoan can finance your renovation as long as 50% of the project relates to energy efficiency work in the following areas:
- heating and cooling systems
- water heaters
- window and doors
- insulation (all types)
- roofing and siding
- solar PV and solar thermal
- geothermal heat pumps
- lighting and controls
- electrical and plumbing
- heated sunrooms
- most other energy-related improvements
As you can probably tell from this exhaustive list, practically any remodeling will include one, if not many, of these elements. Therefore, nothing should stop you from getting your upgrade.
Compared to other loan services, EnergyLoan provides fast, preferred rate with unsecured financing ranging from $1,000 to $25,000. In case you were wondering, unsecured financing means that you do not need a guarantor or collateral to access the loan; you can simply apply. Additionally, EnergyLoan offers longer term payment plans with reduced fees, fixed rates, no liens filed on your home, no home equity required, no closing costs, no penalties for prepayment, and up to 10-year for repayment. EnergyLoan also pays the contractor directly. It’s a simple, direct process.
Best of all, both primary residences and vacation homes are eligible. As with any financing system, lenders smile on good credit and the ability to repay the loan. Before you apply, be sure to get a cost estimate on your work.
The Benefits of Financing
Taking out a loan can be an intimidating process, but thanks to government incentives and regulations, energy improvement loans are a predictable, and certain bet. The majority of these loans have lenient payback plans with fixed rates that are customizable to your level of income and ability to repay.
Plus, the utility savings gained from undergoing a home energy upgrade may offset the payments of your loan.
Why feel stuck with an uncomfortable home when a home energy upgrade is well within your reach? Find the efficiency solution you’ve been looking for on a financial plan you can afford.