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Archive for October, 2014

Creative Financing for Home Energy Efficiency – Save Now, Buy Later

Wednesday, October 8th, 2014

“What is my pay-back?” is the question homeowners often ask when they are considering an investment in home energy improvements.  In the renewable energy community, we like to think that the real pay-back comes in the form of saving fossil fuel and improving the planet.  However, we know that financial considerations are most often the driver for these important homeowner investments.

Green Mountain Power’s recent announcement of their On-Bill Energy Improvement Loan program is a real boost for homeowner s seeking to improve their home’s energy efficiency while keeping their monthly budget intact.  This program allows homeowners to keep their average monthly electric and heating fuel payments stable while adding value to their homes with solar, thermal and energy efficiency improvements.

Unlike leasing, GMP’s program allows homeowners to benefit from federal and state tax credits and rebates.  Over the long run, this reduces the pay- back time for these improvements and also allows homeowners to build equity in their home.

The PACE Program (Property Assessed Clean Energy) is another attractive financing program for Vermont homeowners.  PACE finances energy efficient home improvements and links the payments (through property tax assessments) to the property rather than the homeowner.  This way, financing can be transferred to a new homeowner whether or not the assessment has been paid off.  This ensures that homeowners make an investment that will serve them in the short term and serve future residents of the home through lower energy bills and improved comfort.  PACE loans can also be paid off in full at any time.  Assessment payments for PACE financed improvements are repaid with low fixed payments for a period of up to 20 years.

Efficiency Vermont has more info and a list of towns in Vermont that are eligible for PACE financing.  Towns that adopt PACE financing options benefit from the improvement of the overall energy efficiency for the town’s housing stock while promoting local job growth in the energy efficiency sector.

Of course, traditional home equity loans are also a great resource for financing energy efficiency.  Many homeowners do the math on projected monthly energy savings vs. their monthly loan payments for the equity line and find themselves with positive cash flow right from the start.  Home equity loans have other advantages:  homeowners can include a variety of improvements that might not be approved by other energy-related programs, such as major appliance upgrades, window replacement and landscape improvements.  VSECU has an attractive range of home energy loan products .

No matter which way you slice it, lowering your heating fuel and/or electricity usage brings benefits to your home’s value, your bottom line and most importantly, the planet.  At the Energy Co-op of Vermont , we have a variety of programs and services that can help jump start your path towards an energy efficient home.  Call us today at (802) 860-4090 or send an email to info@ecvt.net.

Member: Vermont Fuel Dealers Association, Vermont Businesses for Social Responsibility, Renewable Energy Vermont, Local First Vermont

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