Efficiency vermont pace program

H ome loans for energy efficiency improvements at no or low interest are now approved for Brattleboro residents, with neighboring towns already implementing the program or on track to bring it to their residents as well. PACE is a clunky term for a new financing tool that turns home energy improvements into a no-brainer for many homeowners.

Furthermore, Efficiency Vermont is offering an interest rate discount for eligible households, with rates as low as 0 percent. The reason for this is simple: PACE removes one of the biggest barriers for making home energy improvements: how to pay for the project in a way that makes sense.

Furthermore, it does so without the need for state subsidies or grants. With PACE, the homeowner receives the financing through a new assessment on their home.

Like a tax or a water bill, this assessment stays with the property until it is paid off. If the homeowner takes out a PACE loan with a year term, makes improvements on the house to make it more energy efficient, then sells the house in 10 years, the remainder of the PACE assessment is paid by the new owner. This makes perfect sense, since the new owner will reap the benefits in the form of lower energy bills and a more comfortable home. With PACE, they can finance this project over a long term, which leads to low monthly payments that are more than offset by the energy savings.

If the homeowners decide to move to Outer Mongolia to join the circus, the new residents reap the financial benefits of a tighter, warmer house and also take over the PACE payments. If done properly, these home energy improvements will save a homeowner more money monthly or annually than the cost of the PACE loan.

Then, when the PACE loan is paid off, the homeowner is sitting very pretty indeed. As an investment or retirement strategy, this is very sweet. On top of these economic advantages are the additional benefits that will accrue to the homeowner as energy prices rise, which just about everyone in the industry expects the current dip in oil prices notwithstanding. The increased value of an energy-efficient home at resale is also a benefit of these improvements.

The icing on the cake is the social halo that people receive from reducing their carbon footprint, known in the vernacular as the Climate Hero effect. It is not hard to take these rates, apply them to a loan for a specific improvement, and project how much energy and money will be saved. Credit scores are not used in the assessment, a free analysis is available to determine the cost effectiveness of each project, there are certain debt-to-income and loan-to-value ratios required as with any loan , and all mortgage, tax, and other town payments must be up to date.

The program, funded by the U. Department of Energy, is expected to last for one to two years, says program coordinator Mark Kelley. PACE has been a long time in coming to Brattleboro. It was first approved by the Vermont legislature in after a lengthy debate.

The recent approval in Brattleboro comes on the heels of high-level negotiations between Brattleboro officials and the Vermont Energy Investment Corporation, which oversees both the PACE program and Efficiency Vermont. For those of us on the Energy Committee who have been working for over four years to bring PACE to town, this approval brought big whoops and hollers. Halifax, Westminster, and Londonderry are halfway there, with their residents having voted for PACE but the Selectboards not yet formally adopting the program.

Dummerston has been sitting on the sidelines watching attentively as PACE develops, and Chuck Clerici, the Wilmington Energy Coordinator, believes that it is only a matter of time before his town signs on. PACE will not fill every available niche in the home-energy project-financing world; other loan options offer different benefits.

In addition, a homeowner still needs to make sure to line up all of the other rebates and incentives, and ensure that the work is done right. Great financing for a sloppy insulation job or an oversized boiler is not going to benefit anyone. How to make your home net zero How to finance your business's energy-saving project More Blog Posts.

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Select your newsletter Sign Up. Qualifying improvements include cold climate heat pump heating and cooling systems , efficient hot water heaters , air sealing , insulation, renewables, and more. Visit the Neighborworks of Western Vermont website for more information. Close Search Efficiency Vermont. Can't find what you're looking for? Call us at 1 Services Financing. Financing for Homeowners Find low-interest loans to help you make energy improvements that boost your comfort and lower your bills.

Why Finance? Home Energy Loan. More Loan Options. Other ways you may be able to finance your energy efficiency improvements include personal loans, home equity loans or lines of credit, and standard mortgages. Terms, closing costs, and eligibility criteria for these products vary by lender. If you have questions about which option may be most suitable for you, contact local lenders or give us a call.