Financing Options for Energy Efficient Home Improvements

Installing proper insulation, high efficiency heating and cooling systems, and energy-efficient windows can lower your utility bills by 10 to 50 percent. But it can be costly to make these improvements and the savings will accumulate over time. There is an excellent chance that you will have to finance some of your renovation expenses.

Options for Financing Energy Efficient Home Improvements

There are a lot of people who are interested in helping you make energy efficiency improvements to your home - your banker and the government among them. They have good reasons.

An Energy Efficient Home Will:

* Consume fewer fossil fuels

* Reduce environmental pollution due to excessive fuel consumption

* Reduce the demand on public utilities

* Reduce the operating costs for the home

* Improve the market value of the home

The government is concerned with the use and impact of fossil fuels along with the strain on public utilities. They have to manage the nation's natural resources and the international relationships with countries supplying the fuel that can not be produced domestically. Recent world events have shown the delicate balancing act required. It is in their interests to promote conservation and efficiency. Some utility companies are under mandates to encourage efficiency to allow them to serve more customers without building bigger delivery systems.

Your banker knows that a home that costs less to operate is more attractive to buyers and will likely command a higher price. It is a good business choice to loan money for projects that will increase the value of your home.

There are also private organizations committed to promoting the efficient use of natural resources who help offset the costs of improvements as a means of encouraging efficient energy usage.

Where To Look for Financing

The first steps to finding money to finance your energy efficient home improvement project are to research the various government, banking, and non-profit institutions that offer home improvement loans and grants. Check their guidelines to determine if you qualify. Also contact the manufacturers of energy efficient heating and cooling equipment. They may offer incentives to encourage adoption of new technology.

Write up a detailed list of the improvements you intend to make. If possible, get estimates of the costs of these changes and an estimate of the reduction in operating expenses you anticipate as a result of the changes.

With your information in hand, contact the funding sources you identified. If they cannot help you, ask them for a referral to a program or institution that they think might be able to help.

A little persistence will lead you to the money you need to complete your home improvement project.