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Using the U.S. Department of Energy's (DOE) free Home Energy Score, home inspectors can provide a miles-per-gallon type rating to their clients. By offering the rating and accompanying recommendations for efficiency improvements, home inspectors can help clients become eligible for mortgage incentives from FHA.
This webcast covers DOE's new white paper, Capturing Energy Efficiency in Residential Real Estate Transactions, which highlights how residential energy efficiency programs can help make homes' energy efficiency visible to appraisers, real estate agents, mortgage lenders, homebuyers and sellers. The webcast provides examples of programs around the U.S. that are successfully engaging the real estate community and overcoming barriers to valuing energy efficiency in the home resale process.
This website provides an overview of financing as it pertains to state, local, and tribal governments who are designing and implementing clean energy financing programs. Residential financing tools include residential PACE (R-PACE), on-bill financing and repayment, loan loss reserves and other credit enhancements, revolving loan funds, and energy efficient mortgages.
This paper investigates the credit enhancement value of NYSERDA's on-bill energy efficiency financing program relative to its similar conventional unsecured loan program. In the raw data, while both loan pools perform well relative to credit card lending, the on-bill loans default more often than the unsecured loans. This paper shows that this result persists: on-bill loans default more often, and this finding is not sensitive to model specification. This paper also shows that NYSERDA's alternate underwriting mechanism based on mortgage and utility bill repayment history performs well, and that projected dollar savings from the installed projects do not significantly influence loan performance.
Communicate the results of your financing activities to internal and external partners.
This webcast provided an overview to the PowerSaver Loan; described the role of financing in home energy efficiency projects and examples of program's experience; introduced how DOE program sponsors and partners can utilize PowerSaver to offer affordable energy efficiency loans to homeowners; and discussed options, strategies and next steps for interested programs to partner with participating PowerSaver lender(s).
This fact sheet describes the PowerSaver loan program, including benefits, eligible improvements, and requirements.
Improve your program’s efficiency and effectiveness through regular information collection, assessment, decision-making, adaptation, and communication.
Solidify your program strategy and decide which customers you will focus on; what products, services, and support you will provide; and how you will partner with contractors and others to deliver services to your customers.
Determine how your target audience currently funds energy efficiency services, to what extent upfront cost is a barrier, and whether improvements to their financing options would increase the uptake of energy efficiency measures.
Determine if enhancements to existing financing products or the development of new products are necessary to allow you to achieve your goals and objectives.
Ensure that your program’s customers will have access to affordable financing, so they can pay for the services you offer.
Study examining actual loan performance data to assess whether residential energy efficiency is associated with lower default and prepayment risks. Results show that default risks are on average 32 percent lower in energy-efficient homes, controlling for other loan determinants.
This study examines actual loan performance data obtained from CoreLogic, the lending industry’s leading source of such data. To assess whether residential energy efficiency is associated with lower default and prepayment risks, a national sample of about 71,000 ENERGY STAR and non-ENERGY STAR-rated single-family home mortgages was carefully constructed, accounting for loan, household, and neighborhood characteristics. The study finds that default risks are on average 32 percent lower in energy-efficient homes, controlling for other loan determinants.
This summary from a Better Buildings Residential Network peer exchange call focused on the features and eligibility of the PowerSaver Loan Program.
Reviews and summarize energy efficiency financing models and strategies. Models are analyzed according to funding sources, program structures, limits to scale, repayment vehicles, and project risks. Strategies consider applicable building sectors, models, levels of establishment, growth potential, advantages, and disadvantages.
This webcast discussed how market research can help spur demand for home energy efficiency programs.
This peer exchange call summary focused on the background and features of the PowerSaver loan program.
Policy brief outlining the HUD PowerSaver Pilot Loan Program.
Focus on the continuous improvement of your financing activities by tracking and evaluating data, responding to feedback, and modifying strategies when needed.
Local financial institutions can be valuable partners to residential energy efficiency programs. They not only can introduce their customers to your program’s services, but also enable customers to pursue larger home energy upgrades by providing financing. To promote loan products crafted for residential customers, programs and their lending partners have co-marketed loan products and upgrades. As a trusted source of information, local lenders may also receive homeowner questions about...