It is now easier than ever to get an energy audit and retrofit for your one to four family home to save energy and money. In June of 2011 the New York State legislature passed a bill mandating the development of an On Bill Financing program. With On Bill Financing homeowners can have their energy conservation measures financed through a charge on their utility bill. The fixed interest rate is a low 2.99%. The loan is repaid through a charge on the homeowner’s utility bill for the agreed loan period. The loan transfers to future owners upon the sale of the home. The interest may be tax deductible.
Through this program, homeowners can borrow up to $25,000 if the financed portion of the project has a payback period of 15 years or less, and $13,000 if the payback period of the financed portion is more than 15 years. In the On Bill Financing program, monthly payments can not exceed 1/12th of the estimated annual savings on energy cost. Payments and interest on the loan do not begin before June 2012. NYSERDA also offers an unsecured loan product at higher interest rates for those who would rather not have the loan obligation attached to their mortgage. A comparison of the two loan programs can be viewed here.
To qualify for the program a homeowner must first sign up for a NYSERDA Green Jobs Green New York energy audit which can be free to low cost, depending on income level. My wife and I are in the 250% of AMI (Area Median Income) bracket and our cost for the audit will be $50. The audit is performed by a NYSERDA approved certified home performance contractor, which means at least one member of their crew has completed Building Performance Institute (BPI) training and certification. These audits not only identify opportunities to improve a home’s energy performance, they also identify safety issues, such as gas leaks and carbon monoxide issues.
The audit takes 4 to 5 hours to complete. Upon completing the audit the home performance contractor will generate a report (usually within 1 to 2 weeks) and present the home owner with a list of measures that can be implemented and paid for by incentives or financing programs from the state. The homeowner can elect to finance with a low interest unsecured loan from the state or with On Bill Financing. It is important to know which loan program you intend to pursue, as the analysis and reporting requirements for On Bill Financing loans are apparently more stringent than for the unsecured loan product. If in doubt, tell your auditor to prepare his report according to the higher standards of the On Bill Financing loan product.
This is an important opportunity for homeowners to reduce their energy bills. Funding for the program is limited so act sooner rather than later. My wife and I signed up for an energy audit which was conducted this past Thursday. Stay tuned, I will be writing another blog post about the experience and the results.
Thanks for the info. I’ll be pursuing it.