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Financing Alternatives

If mPOWER is not a good fit, these might be

mPOWER’s primary goal is to help property owners – both homeowner and non-residential – save money, conserve energy and water, and create jobs. As a matter of policy, mPOWER wants property owners to know about other financing options available. If mPOWER does not fit your project, financing, or timeline needs, then perhaps another program might.

The U.S. Department of Energy has created Finance Navigator to help simply many of the options available.

Here are some more options to consider:

Other residential financing options

The programs listed in this section are offered through a variety of providers like the Federal Housing Authority and the State of California. mPOWER recommends thorough examination of each option and consideration of its terms and conditions, just like with any financing.

HomeStyle Energy Loan

The HomeStyle® Energy mortgage loan helps lenders offer affordable financing to borrowers seeking to improve the energy and water efficiency of their homes. HomeStyle Energy is open to all Fannie Mae lenders; no special approval needed.

Federal Housing Authority/Housing and Urban Development Energy Loan Programs

  • Energy Efficient Mortgage Loan: helps current or potential homeowners significantly lower their monthly utility bills. Energy efficient improvement costs can be incorporated into an FHA loan.
  • PowerSaver Home Energy Retrofit Loan Pilot Program: offers borrowers low-cost loans to make energy-saving improvements to their homes. FHA PowerSaver loans offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including the installation of insulation, duct sealing, doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.
  • Energy Star: Includes partner lenders, FHA and VA program listings and more.
  • Housing Urban Development Lender List: Look up lenders who work with FHA/HUD programs in your area.

USDA Rural Housing Programs for Individuals – Energy and Water Projects

The USDA offers a variety of options for funding energy efficiency, biofuel, water conservation and treatment, and more at its Rural Housing Energy and Water Projects page.

California Residential Energy Efficiency Loan Assistance Program (REEL)

The Residential Energy Efficiency Loan (REEL) Assistance Program is the first of seven CHEEF pilot programs to roll out in the state of California. The program is designed to help homeowners and renters access lower-cost financing for energy efficiency projects by reducing risk to participating lenders. The program has more than $20 million available in loan loss reserve funds to help participating lenders mitigate energy efficiency loan risk.

Other non-residential financing options

Non-residential properties have a variety of options including on-bill financing among others. These programs are provided through the utilitiesand the State of Calfornia. There may be more financing options out there. MPOWER encourages you to look.

PG&E Interest Free Loan

You must have been a PG&E commercial customer for at least 24 months with a good standing 12-month payment history to qualify. To start the process, talk to your PG&E account representative or call 1-800-468-4743. You can also complete a request form online. Visit Energy Efficiency Financing Request Form for more information.

USDA Rural Energy for America Program

The USDA Rural Energy for America Program offers grants and loans for Renewable Energy Systems & Energy Efficiency Improvement.

Rural Business-Cooperative Service offers a variety of programs that will help attain the President’s goal and ensure America’s energy independence. Authorized by the Agricultural Act of 2014, it offer funding to complete energy audits, provide renewable energy development assistance, make energy efficiency improvements and install renewable energy systems.

Small Business Loans, Lease and Energy Service Agreements

A credit enhancement will be offered to encourage energy efficiency financing for small businesses. The option to make payments on customer’s utility bills (on bill repayments) will be available for loans, leases and energy service agreements. In addition, an off-bill option will be provided for leases and energy service agreements. Details at the California State Treasurer Website.

Special District Financing Opportunities

Special districts including K-12 Schools Districts, County office education, State Special schools, Community Colleges, Cities, Counties, Public College or University, among others will find additional funding opportunities at the State of California’s Energy Commission.

Small Business Loans, Lease and Energy Service Agreements

The Small Business Association offers a variety of loan and grant programs, including energy efficiency.

Tips for Working with Contractors

The California Better Business Bureau offers guidance on working with contractors.

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