Though the American Recovery and Reinvestment Act of 2009 (ARRA) provides tax credits and rebates for homeowners looking to make energy efficiency improvements to their homes, many families feel they can't afford the upfront cost of these measures, or of relatively costly items like solar panels or geothermal heat pumps. The ARRA is encouraging the use of funds to create low-interest loan programs to bridge this gap, providing a solution for those who want to make long-term investments in energy conservation and renewable energy systems.
Low interest loan programs for "weatherization" are now becoming more common and accessible to homeowners. Weatherization provides the basics of keeping the weather out -- and your comfortable, healthy indoor environment in -- by sealing gaps and cracks, and increasing insulation.
Replacing old appliances with energy-efficient models, upgrading heating and cooling systems, and even installing solar water and photovoltaic systems are also items that can qualify for loans from state energy departments and utility companies. These programs recognize that improving energy efficiency is in everyone's best interest, and agencies are working to allow loans to be secured quickly and easily.
State-operated loan programs are less common than ones offered by utility companies, but homeowners may find their rates and terms more appealing. One such program, the Home Energy Loan Program, is a statewide plan administered by Minnesota's Center for Energy and Environment Financial Resources. The program offers a maximum of $10,000 loans at 6.25 percent interest with a maximum term of five years. Residents of Minnesota need only to own their house, or be purchasing it through a mortgage, to qualify. The program loans money for new water heaters, air conditioners, windows, doors and improved insulation.
