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Energy Efficiency Financing Resources

The biggest hurdle to implementing energy efficiency programs can be the financing.  Fortunately there are many opportunities for energy efficiency financing through incentives and rebates.

Federal Programs
US Department of Energy Database of Tax Credits, Rebates & SavingsSection 179D Tax Credit Deduction for Energy Efficient BuildingsFederal Weatherization Program
US Department of Energy Database of Tax Credits, Rebates & Savings
Government agencies, utilities and others offer a variety of tax credits, rebates and other incentives to support energy efficiency, encourage the use of renewable energy sources, and support efforts to conserve energy and lessen pollution. Nationally available rebates are listed below.

Access the database here.

Section 179D Tax Credit Deduction for Energy Efficient Buildings

On August 8, 2005, history was made when President George W. Bush signed H.R. 6, the Energy Policy Act of 2005. The legislation set a precedent by containing a market transformation incentive in the form of a tax deduction for owner investments in commercial building energy efficiency. The Energy Policy Act of 2005 establishes a new deduction for expenses incurred for energy-efficient commercial building property. The deduction is equal to energy-efficient commercial building property expenditures made by the taxpayer, subject to a cap. This document describes the tax deduction provision in general. Nothing in this material should be construed as a substitute for consultation with a qualified tax professional.

Click here for a downloadable summary. 

Federal Weatherization Program

The Weatherization Assistance Program (WAP) enables low-income families to permanently reduce their energy bills by making their homes more energy efficient. Funds are used to improve the energy performance of dwellings of needy families using the most advanced technologies and testing protocols available in the housing industry. The U.S. Department of Energy (DOE) provides funding to states, U.S. overseas territories, and Indian tribal governments, which manage the day-to-day details of the program. These governments, in turn, fund a network of local community action agencies, nonprofit organizations, and local governments that provide these weatherization services in every state, the District of Columbia, U.S. territories, and among Native American tribes.

The energy conservation resulting from these efforts of state and local agencies helps our country reduce its dependence on foreign oil and decrease the cost of energy for families in need while improving the health and safety of their homes. During the past 33 years, WAP has provided weatherization services to more than 6.4 million low-income households. Families receiving weatherization services see their annual energy bills reduced by an average of about $437, depending on fuel prices. Because the energy improvements that make up weatherization services are long lived, the savings add up over time to substantial benefits for weatherization clients and their communities, and the nation as a whole.

Click here for a link to the Federal Weatherization Program Home Page.

 

National Programs
Enterprise Green CommunitiesProperty Assessed Clean Energy (PACE)
Enterprise Green Communities

Enterprise Green Communities is the first national green building program developed for affordable multifamily housing. Enterprise believes all residents and owners of affordable multifamily housing should have access to healthy, energy and water efficient homes.

Enterprise recently issued a national call to action to make all affordable multifamily housing in the United States meet green energy criteria by 2020.

Learn more about Enterprise Green Communities Certification here.

Multifamily and commercial real estate financing is offered through Fannie Mae’s partner network of qualified lenders, known as Delegated Underwriting and Servicing (DUS) Lenders. For a list of these lenders, visit this page. Strategic Energy Group is an approved Technical Assistance Provider with Enterprise Green Communities. We are qualified to perform Green Physical Needs Assessments (GPNA), a requirement for the Green Refinance Plus Loan.

Property Assessed Clean Energy (PACE)
Property Assessed Clean Energy is an innovative way to finance energy efficiency and upgrades to buildings.  Interested property owners work with the Strategic Energy Group of Nova to evaluate measures that achieve energy savings and apply to their local PACE administrator to receive 100% financing.  This debt is repaid as an additional charge on your property tax bill. Repayment obligations transfer to the next owner if the property is sold. Click here to see if there is a PACE program in your state.

Why use PACE financing?

  1. By offering up to 100% financing PACE can eliminate the need to pay out of pocket for your project.
  2. Depending upon the type of improvements installed, repayment may be amortized for a period of up to 20 years. You can optimize a project to realize positive cash flow.
  3. The interest may be tax deductible.
  4. Because PACE ties the loan to the property and not an individual, the loan may transfer upon sale or refinancing of the property. Therefore you may not need to be concerned about recouping the cost of your improvements if you decide to sell the property before the loan is repaid.

 

State Programs

Click on a state below for information on incentive and rebate programs in that state. Only states highlighted in color currently have information listed.


State Energy Efficiency Programs

 

Contact Us

Andrew Calise | Strategic Energy Group | E-mail | 800.656.9617