Financing your home energy upgrades
Looking to replace your old furnace or boiler—but not looking forward to the cost?
We get it. Updating your home’s heating and cooling equipment can be a significant investment. In fact, recent surveys reveal that a significant number of homeowners across the U.S. are putting off much-needed upgrades because of the steep costs (1).
However, you might not need to postpone that home heating system replacement after all, because more payment options are available than most people know.
Don’t worry; we’re here to guide you through. The good news is: it’s easier than ever to make home energy improvements for $0 out of pocket thanks to low-interest residential financing programs provided through Energy Finance Solutions on behalf of the New York State Energy Research and Development Authority (NYSERDA). These loan programs are designed to encourage the installation of high-quality HVAC systems and mechanical improvements to increase the energy efficiency of your home (2).
To qualify for these financing options, the eligible energy efficiency improvements for your home must be installed by an authorized NYSERDA participating contractor —that’s where we come in. We’ve helped many of our customers access financing for their home energy upgrades, and we take great care to ensure that the system design and equipment we recommend ensures that your monthly loan payment is less than what you save on fuel costs.
As a participating contractor, we also assist with the loan application process by submitting all required supporting documentation for your project—making that one less step you need to worry about!
Energy Finance Solutions offers the three following loan products:
Smart Energy Loan
This is a traditional loan that you repay monthly via check or automatic payment (ACH). If you sell or transfer the property, you remain responsible for the balance of the loan.
On-Bill Recovery Loan
Your loan payments are built right into your utility bill. Your monthly payments may not exceed your estimated average monthly energy cost savings. Your energy savings essentially pay for your work.
Renewable Energy Tax Credit Bridge Loan
A balloon payment of principal and interest is due at maturity and can be paid via check or ACH payment. You can pair this loan with a Smart Energy or On-Bill Recovery Loan (total cannot exceed $25,000) and a Companion Loan.
To be eligible, you must own the home or be an authorized representative of the property owner. Each loan can cover anywhere from $1,500 to $25,000 of project cost. Interest rates vary from 3.49% - 6.99%.
Your overall savings are ultimately determined by the efficiency of the equipment selected by you and your contractor (because equipment with lower efficiencies will require more energy to provide the same amount of heating and cooling). That’s why we specialize in HVAC technology with the highest efficiencies available on the market, and why we consistently recommend systems that cut our customers’ energy bills, so they’ll have saved more than they spent by the end of the loan repayment term.
Don’t just take our word for it! Our team recently completed a project for a customer replacing their old, 78%-efficiency propane boiler with a heat pump. (We should note that switching from oil or propane to a high-efficiency system in particular yields the best results, and that 78% efficiency is…not great).
At current propane and electricity prices, this residence is expected to save approximately $2800 in the first year after switching to a heat pump, or $233 a month. Their loan payment is roughly $160 a month. All in all, they are saving about $73 each month, with the added benefit of a brand new heating system that also handles cooling, unlike the boiler that was replaced.
Of course, the projected value is based on the price of electricity and propane right now—but we’re willing to go out on a limb and assume that fossil fuel prices (other than natural gas) will remain high.
Need to replace old equipment? We’ve got you covered—get in touch to discuss your options!
