Did you know that the average cost of utilities in America is $500 to $600 per month? Increases in utility usage and costs can drain your budget and have a broader global impact by depleting limited natural resources in our environment.
One way to take care of your finances and the planet is to make energy efficiency upgrades in your home. By reducing energy losses, you can save money on your monthly bills and reduce greenhouse gas emissions contributing to climate change. For example, fixing air leaks, improving insulation, and replacing an underperforming HVAC system can also make you feel more comfortable and increase the value of your home.
Upgrade financing can require a significant investment; however, there are loans for energy efficiency improvements and other programs that homeowners can take advantage of and live sustainably.
Common Efficiency Upgrades to Consider
One common place to start making your home more energy efficient is your windows and doors. Check for air leaks, then seal any gaps so that unwanted hot and cold air doesn’t escape inside. To take this one step further, consider replacing old windows and doors with new, energy-efficient ones.
You can also look into improving your home’s insulation, upgrading your heating and cooling systems, and installing solar panels on your roof.
Financing for Energy Efficiency Improvements
Although energy efficiency improvements will save money in the long run, they require an upfront investment that you may struggle to afford all at once. Fortunately, financing for energy efficiency improvements is available through energy-efficient loans and incentive programs.
1. Western Shamrock Installment Loans
Western Shamrock offers loans for utility bills that you can pay back in affordable monthly installments. You can use your loan funds to install solar panels, a wind turbine, an HVAC system, or a geothermal heating and cooling system.
Visit a local Western Shamrock branch to see how much you qualify for, or start your application online today to expedite the process.
2. On-Bill Payment Programs
Some utility providers and third-party companies offer on-bill financing programs to lend customers money for the upfront costs of efficiency upgrades. Contact your utility company to ask if it provides any such program that would add loan repayment fees to your monthly energy bill. These programs are beneficial because they are cost-effective, require no large upfront payment, and the annual energy savings often cover loan payments.
Pay As You Save is a program that benefits low- and middle-income families by making utility upgrades more accessible. It is not a loan but rather an energy-efficient investment directly in customers’ homes. It adds a fixed charge to monthly bills until the upgrades are paid off, eventually allowing energy bills to become lower.
3. Solar Leases
One alternative to loans for utility bills is a solar lease, which covers solar panel systems so you don’t have to buy them with cash. It is typically quick and easy to qualify for a solar lease from a solar installation company. There is no initial cost for a solar lease, but it can become expensive in the long term.
4. Property Assessed Clean Energy Financing
Also known as PACE financing, this is a property tax lien connected to your property for energy and water efficiency upgrades. Part of the financing comes through origination fees and interest, and you can apply for it through a contractor or program website.
5. Home Equity Line of Credit
Another approach to financing for energy efficiency improvements is a home equity line of credit, which can pay for any home improvement, including energy upgrades. This option comes with variable interest rates and tax-deductible interest, and you can apply through a credit union or lending company.
6. Energy Efficient Mortgages
Homeowners can take out energy-efficient mortgages to pay for upgrades based on a Home Energy Rating System report. This report identifies qualifying improvements for your property, such as HVAC, windows, insulation, and solar. Energy-efficient mortgages are similar to regular mortgages but often have slightly higher interest rates.
7. Renovation Loans
Meanwhile, renovation loans for energy efficiency improvements come in three types: FHA 203k, Fannie Mae HomeStyle, and the Freddie Mac Renovation Loan. Specialized lenders offer these loans, which are similar to conventional mortgages but have additional closing fees.
8. Credit Union or Bank Loans
Credit unions and banks can offer loans for energy upgrades and green projects. Interest rates can vary, but no property collateral is required.
Considerations Before Financing for Energy Efficiency Improvements
As you can see, many options are available to upgrade your home’s efficiency and conserve resources for the environment.
As you compare these options, pay close attention to interest rates, terms, and upfront costs for programs. Understand your loan’s repayment periods and monthly obligations, and factor potential tax deductions on interest payments into your overall energy upgrade calculations.
How Western Shamrock Can Help
A Western Shamrock personal loan can be used for essentially any purpose, making it a flexible source of financing for energy efficiency improvements. Many of our clients can secure hundreds or even thousands of dollars in loans to put toward efficiency upgrades that pay for themselves over time.
Our energy-efficiency loans for homeowners offer a simple application process, flexible repayment terms, competitive interest rates, and personalized support to help you find the best option for your project. With our accessible and reliable loans, you can begin saving significantly and doing your part to reduce utility waste and conserve resources for future generations.
Contact us today to learn more about energy efficient loans!
