Financing for Homeowners

Making energy-saving improvements can seem expensive, but there are budget-friendly ways to save energy in your home and upgrade its value. 

LOAN OPTIONS

Two different loan options are available to help you pay the upfront cost for the energy efficiency and renewable energy improvements in your home. Talk to your participating contractor and select the loan that works best for you. Loans are not incentives or rebates, and must be paid back.

These loan options can be used with the following NYSERDA programs:


On-Bill Recovery Loan

• Convenient – no separate bill to pay • Repay from the money you save on energy  • Interest may be tax deductible • Transferable if you sell your property • Your energy savings essentially pay for your work.

 

The On-Bill Recovery Loan Program allows you to finance energy efficiency improvements to your home through a charge on your utility bill. Your repayment amount will be based on projected savings on your energy bills. It’s a convenient way to finance improvements that make your home more energy efficient and comfortable. The payments appear as a separate line item on your utility bill and are financed at a special low interest rate that may be tax deductible, and it is transferable if you sell your property.  

 

  • Loan payment is built into your utility bill
  • Loan amounts from $1,500 - $25,000 with loan term of 5, 10 or 15 years
  • Balance may be transferred to new owner when home is sold
  • A declaration is filed with the County Clerk to record the obligation of the loan (this is not a lien on the property)
  • You must own the home and be named on the utility account
  • The home must be served by a participating utility, including: Central Hudson Gas & Electric, Con Edison, PSEG-Long Island, NYSEG, National Grid (Upstate NY customers only), Orange & Rockland, and Rochester Gas & Electric
  • No prepayment penalties  
  • Only Participating NYSERDA Contractors are eligible to perform the installation.

Smart Energy Loan 

  • The Smart Energy Loan is a more traditional loan that you repay monthly via check or automatic payment.

 

Take advantage of low-interest unsecured loans through the Home Performance with ENERGY STAR® Program (HPwES). Loans are available to participants in HPwES for the purchase and installation of recommended energy efficiency improvements that may be repaid through energy savings. The Smart Energy Loan is a more traditional loan that you repay monthly via check or automatic payment.

 

 

  • Interest rate is 3.49% for automatic bank withdrawal (3.99% for payment by check); interest rates subject to change
  • Monthly payments made to NYSERDA’s loan servicer
  • Loan amounts from $1,500 - $25,000 with loan terms of 5, 10, or 15 years
  • If you sell or transfer the property, you remain responsible for the balance of the loan
  • You must own the home or be an authorized representative of the property owner
  • No prepayment penalties   
  • Only Participating NYSERDA Contractors are eligible to perform the installation.

Interest Rate

3.49% for households with incomes up to 80% of the area median income (AMI)
4.99% for households with incomes above 80% AMI up to 120% AMI
5.99% for households with incomes above 120% AMI who are only eligible through Tier 2 criteria
6.99% for energy efficiency only projects for households with incomes above 120% AMI who qualify through Tier 1 criteria
7.99% for PV projects or projects including renewable energy systems for households with incomes above 120% AMI who qualify through Tier 1 criteria.

* Interest rates are subject to change without notice.

Online Interest Rate Estimator

The Interest Rate Estimator tool can help you find which interest rate may be available to you.  

Please note, the interest rate estimator is an estimator tool that will provide an interest rate based upon your selected criteria.  A credit application must be submitted and meet all of NYSERDA's qualifying criteria to determine the final interest rate which will be calculated by a loan professional. Please note that these interest rates apply to On-Bill Recovery Loans and Smart Energy loans, which include automatic payment deduction from a checking account.  Interest rates for Smart Energy loans that include standard billing by mail from the Loan Servicer are 0.5% higher than the rate shown here.


Do I Qualify for a Loan?

The Home Performance with ENERGY STAR® Loan Program offers New York residents two options to receive loan approval. Both approval options allow customers to access the same low-interest, Smart Energy Loan product.

Primary Approval Process (Tier 1):

Customers who meet the following underwriting criteria** may be approved through the primary approval process: • FICO credit score of 640* • Debt-to-Income Ratio less than 50% • No bankruptcies, foreclosures, or repossessions in the past seven years • Outstanding collections, judgements, liens, and charge-offs may not exceed $2,500 *Customers who are self-employed and have been in business for two or more years must have a FICO score of 680 or higher. Customers who are self-employed and have been in business for less than two years must have a FICO score of 720 or higher.

Alternate Approval Process (Tier 2):

Customers who are not approved through the primary approval process may still qualify for a loan if they meet the following criteria**: • Mortgage has been paid on-time for the past 12 months • Electric and gas/oil/propane accounts have been current for two consecutive months during each of the past two years - OR - electric and gas/oil/propane accounts have been current for nine of the past 12 months • No energy or mortgage payments more than 60 days late for the lesser of the last two years or the time of ownership • Debt-to-Income Ratio up to 55% - OR - up to 70% if FICO score is 680 or higher - OR - waived for applicants who qualify for Assisted Home Performance with ENERGY STAR • No bankruptcies, foreclosures, or repossessions in the past five years • Outstanding collections, judgements, liens, and charge-offs may not exceed $2,500 **These items provide an overview of the underwriting standards for the loan. Additional requirements may apply.


Energize NY Finance

Looking for details on commercial, multi family and non-profit financing? Click here to learn more.

If you are looking to save energy in your commercially or nonprofit owned building, Energize NY Finance provides an alternative to traditional equity or unsecured loans. The Program uses an innovative form of financing called Property Assessed Clean Energy (PACE) financing. Under the PACE financing model, a Property Owner opts to pay for energy Improvements by authorizing the municipality where the Property is located to add a special tax charge to the Property (a “Financing Charge”) for that purpose.

Full details on the Energize NY Finance page. Look for the Pre-Application in the left-hand column. 

 


SUBSIDY

Assisted Home Performance with ENERGY STAR 

The AHPwES program is exactly the same as the regular Home Performance with ENERGY STAR® program, except there is an additional financial incentive for upgrades made to single family homes and 1-4 unit rental properties with income-qualified tenants or owners. New York residents with a total household income equal to or lower than 80% of State or Area Median Income (whichever is greater), may be eligible to receive a subsidy that represents up to 50% of the total cost of an approved energy efficiency project--up to $5,000 for a single family home and up to $10,000 for a 2- to 4- family home. Low-interest financing is also available to cover the balance of the energy efficiency project. The Assisted Subsidy is available for existing 1- to 4- family homes with a total household income at or below 80% of the State or Area Median Income (whichever is greater). You will be required to submit your tax return. Ask your contractor about this option or call Energize for assistance.

 Size of Household

 1 person

 2 people

 3 people

 4 people

 Household Income Limit          (80%  of Westchester AMI)

  $59,733

  $68,267

  $76,800

  $85,200

 


Eligible Measures

The Home Performance with ENERGY STAR® Loan Program is designed to encourage the installation of high efficiency measures to increase the energy efficiency of your home. All energy efficiency measures to be installed must meet minimum efficiency requirements to be eligible for financing. Your contractor can help you understand the eligible measures or you can download this guide. 

NOTE: • Projects must achieve a Savings-to-Investment Ratio (SIR) of greater than 1.0 to be eligible for the HPwES Loan. The loan term may not exceed the weighted useful life of the financed measures. • Loans above $13,000 (up to $25,000) are required to achieve a payback period of 15 years or less. The payback period is calculated by dividing the tool amount of the loan by the estimated energy cost savings per year.

How Do I Get Started? 

You start by submitting an application for an approved energy assessment by one of the participating Energize contractors. Click here to get started.  If you've already done an application and have had your assessment, your contractor can walk you through your financing options. 

 

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