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New York: Home Performance with ENERGY STAR® Financing Program


|    Loan Features   |   Do I Qualify?   |
|    Eligible Measures   |    How to Apply   |
|    Assisted Home Performance with ENERGY STAR   |

Energy Finance Solutions (EFS) is proud to originate NY Home Performance with ENERGY STAR (HPwES) loans on behalf of the New York State Energy Research and Development Authority (NYSERDA). NYSERDA offers New York State residents two reduced-interest rate loan products to finance qualified residential energy efficiency improvements, as authorized by the Green Jobs-Green New York Act of 2009 and the Power NY Act of 2011. The two loan products are: 1) an Smart Energy Loan repaid in installments to NYSERDA's loan servicer; and 2) an On-bill Recovery Loan, repaid through an installment charge on your utility bill.




Loan Features

The New York State Energy Research and Development Authority (NYSERDA) offers New York State residents two reduced-interest rate loan products to finance qualified residential energy efficiency improvements, as authorized by the Green Jobs-Green New York Act of 2009 and the Power NY Act of 2011. The two loan products are: 1) an Smart Energy Loan repaid in installments to NYSERDA's loan servicer; and 2) an On-bill Recovery Loan, repaid through an installment charge on your utility bill.

Following is a summary of the terms and conditions of each type of loan:

LOAN PRODUCTS AND TERMS

Loan Type

Smart Energy Loan

On-Bill Recovery Loan

Eligible for Financing

Eligible energy efficiency improvements to a 1- to 4- unit residential building by a participating BPI-accredited Home Performance with ENERGY STAR contractor. The improvements may include ancillary "health and safety" improvements, provided they do not exceed 15% of the total cost and a maximum of $2,000.

Program Cost-Effectiveness Requirements

  • The total loan payments1 must be less than the estimated energy savings2 over the anticipated life of the improvements.
  • Applicant(s) who heat with natural gas, other than those who qualify for the Assisted Home Performance with ENERGY STAR subsidy, may elect to finance improvements provided the estimated energy savings2 over the anticipated life of the improvements are at least 80% of the total loan payments1. 4
  • The total loan payments1 must be less than the estimated energy savings2 over the anticipated life of the improvements.
  • The monthly loan installment payment may not exceed 1/12th of the estimated average annual energy savings2 from the improvements over the loan term.

Borrower Eligibility

  • An applicant and/or co-applicant who owns a 1-4 unit residential building, or who leases or manages such building and who has the authority to contract for energy efficiency improvements in the structure. At least one applicant must be an individual, but may include a legal entity as a co-applicant.
  • The applicant and co-applicant must meet eligibility requirements and loan underwriting standards. If either applicant is unable to meet the eligibility requirements, the applicants may be able to meet combined eligibility requirements. If so, both will be listed as co-borrowers on the Note and will be jointly and severally liable.
  • An applicant and/or co-applicant who owns a 1- to 4- unit residential building. At least one applicant must be an individual, but may include a legal entity as a co-applicant.
  • The applicant and/or co-applicant must be named on the utility account of one of the following participating utilities: Central Hudson, Con Edison, Long Island Power Authority3, National Grid (upstate), New York State Electric and Gas Corporation, Orange & Rockland Utilities, Rochester Gas and Electric.
  • The applicant and co-applicant must meet eligibility requirements and loan underwriting standards. If either applicant is unable to meet the eligibility requirements, the applicants may be able to meet combined eligibility requirements. If so, both will be listed as co-borrowers on the Note and will be jointly and severally liable.
  • All individuals or legal entity representatives named on the property deed must sign an On-Bill Recovery Program Declaration, which will be filed by NYSERDA to provide notice to any subsequent purchaser of the property.
  • The number of loans eligible by utility territory is limited, subject to increase by the Public Service Commission.

Repayment Terms

  • Repaid directly to NYSERDA's loan servicer through monthly statement billing or monthly electronic (ACH) payment.
  • If you sell or transfer your property, you remain responsible for the outstanding balance of the loan and the loan may not be assigned.
  • Nonpayment may subject you to a judgment, and NYSERDA is authorized under State law to certify amounts past due for collection by offset from income tax refunds or other payments due from the State.
  • Repaid through a NYSERDA Loan Installment charge on your utility bill, except in instances when utility service is terminated or suspended, when you will be billed directly by NYSERDA's loan servicer.
  • Requires an On-Bill Recovery Program Declaration. The Declaration is not a lien on the property, but is recorded in a similar way as a Mortgage to provide notice to others of the obligations under the loan transaction.
  • If you do not satisfy the remaining loan obligation prior to sale of your property, you must provide a notice to the purchaser. You will be responsible for any amounts billed by the utility up to the date of transfer. If agreed upon by the buyer and seller, the remaining monthly installments will be billed to the new utility account holder.
  • Nonpayment of billing by utility may subject you to termination of utility service; nonpayment of billing by loan servicer may subject you to a judgment.

Loan Amount

  • Up to $13,000 (up to $25,000 if the simple payback is under 15 years, calculated by dividing the loan amount by the 1st year energy costs savings).
  • Minimum loan $3,000 ($1,500 for consumers who qualify for the Assisted Home Performance with ENERGY STAR Subsidy)
  • Only one On-Bill Recovery Loan per account is allowed.

Loan Term

5, 10, or 15 years; term may not exceed expected useful life of measures

Interest Rate (subject to change)

3.99% Fixed Rate; 3.49% if borrower repays through automatic ACH payment

3.49% Fixed Rate

Fees

  • $150 Lender processing fee, may be included in amount financed
  • $5 late payment fee
  • $20 fee for returned payments
  • Collection fee of up to 22% of amount due if not received within 90 days of due date, as authorized by State law.
  • $150 Lender processing fee, may be included in amount financed.
  • Late payment fee of 1.5% of unpaid loan installment charges billed directly by NYSERDA's loan servicer.
  • If borrower's utility service is terminated, may be subject to a reconnection fee from the utility.
  • A past due balance on the utility account may be subject to a collection fee by the utility as authorized by the Public Service Commission.
  • A returned payments fee may be charged by the utility as authorized by the Public Service Commission.

1 Loan payments refers to principal and interest payments on the loan; payments attributable to health and safety measures are excluded.
2 Energy savings include forecasted utility rate increases of .8% per year.
3 LIPA customers who are on bi-monthly billing and apply for an On-Bill Recovery Loan will be changed to monthly billing when the approved loan installment charge is placed on their bill.
4 Revised 7-13-12; previously required anticipated lifetime energy savings at least equal to loan payments.


These standards are subject to change at NYSERDA's discretion.

For both loans, improvements eligible for financing include energy efficiency improvements to a 1- to 4- unit residential building that have been approved by NYSERDA and are installed by a participating BPI-accredited Home Performance with ENERGY STAR contractor. The cost of the financed improvements must be less than the estimated energy savings over the anticipated life of the improvements.

To be approved for loans, an applicant and/or co-applicant must meet NYSERDA credit standards, which include:

  • satisfactory credit score (or demonstrated history of satisfactory energy bill and mortgage payment);
  • acceptable level of income relative to outstanding debt obligations;
  • no bankruptcies, foreclosures, or repossessions within the last 7 years (5 years if demonstrated history of satisfactory energy bill and mortgage payment); and
  • not more than $2,500 in outstanding collections, charge-offs, liens and judgments.

If either applicant is unable to meet the eligibility requirements, the applicants may be able to meet combined eligibility requirements. If so, both will be listed as co-borrowers on the Note and will be jointly and severally liable.

The following information is reviewed to determine the applicant's eligibility for either loan:

  • Credit Application
  • A credit report inquiry will be made to obtain your FICO score, monthly obligations, and other information
  • Consent form to obtain payment history from energy service provider, if necessary
  • Additional items as necessary
  • For On-bill Recovery Loan, a title company under contract to NYSERDA will search public records to determine the ownership of the property

Click here to review the On-Bill Recovery Loan financing agreement (Note): Note.pdf
Click here to review the On-Bill Recovery Declaration agreement: Declaration.pdf


Only Building Performance Institute (BPI)-Accredited contractors participating in NYSERDA's Home Performance with ENERGY STAR Program (Participating Contractors) are eligible to perform the installation. For a list of Participating Contractors servicing your county, please call 866-NYSERDA or click here.

If you have questions about the BPI Accreditation, please contact the Building Performance Institute at 518.899.2727 or visit www.BPI.org.

If you have questions about how to become a Participating Contractor in the Home Performance with ENERGY STAR Program, please contact Conservation Services Group (CSG) at 518.207.4500.

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Do I Qualify for a Loan?

Home Performance with ENERGY STAR offers New York residents two loan approval processes, each providing access to the same low-interest rate.However, the interest rate will vary by loan product (On-Bill Recovery loan and unsecured financing).


Primary Approval Standards:
Customers who meet the following underwriting criteria** may be approved through the primary approval process:

  • FICO credit score of 640*
  • Debt-to-Income Ratio less than 50%
  • No bankruptcies, foreclosures, or repossessions in the past seven years
  • Outstanding collections, judgments, liens, and charge-offs may not exceed $2,500

*Customers who are self-employed and have been in business for two or more years must have a FICO score of 680 or higher. Customers who are self-employed and have been in business for less than two years must have a FICO score of 720 or higher.

Alternate Approval Standards:
Customers who are not approved through the primary approval process may still qualify for a loan if they meet the following criteria**:

  • Mortgage has been paid on-time for the past 12 months
  • Electric and gas/oil/propane accounts have been current for two consecutive months during each of the past two years - OR - electric and gas/oil/propane accounts have been current for nine of the past 12 months
  • No energy or mortgage payments more than 60 days late for the lesser of the last two years or the time of ownership
  • Debt-to-Income Ratio up to 55% - OR - up to 70% if FICO score is 680 or higher - OR - up to 100% for applicants who qualify for Assisted Home Performance with ENERGY STAR
  • No bankruptcies, foreclosures, or repossessions in the past five years
  • Outstanding collections, judgments, liens, and charge-offs may not exceed $2,500

If you would like to pursue the Alternate Approval Process, please click here for information on how to obtain your utility payment and billing history.

These standards are subject to change at NYSERDA's discretion.

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Eligible Measures

The Home Performance with ENERGY STAR Loan Program is designed to encourage the installation of high efficiency measures to increase the energy efficiency of your home. All energy efficiency measures to be installed must meet minimum efficiency requirements to be eligible for financing. Click here for more information about the types of improvements that may be financed.

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How to Apply

Before you select from one of the four options below please download the document, "How to Participate in GJGNY Residential Financing" for a step-by-step instruction guide designed to assist you through the HPwES Loan process.

The HPwES Residential Credit Application is not a contract for a loan, nor does it lock you into any commitment with a Participating Contractor. The credit application will allow EFS to proceed with your request for a loan to finance your energy efficiency improvement(s). The Credit Application allows you to select which loan option you prefer.

NOTE: Any homeowner with a credit history involving a foreclosure, bankruptcy, or repossession in the past five (5) years will be ineligible for this loan.

Below are four (4) ways to apply for the Home Performance with ENERGY STAR Loan.

A) Apply Online

Use the credit application online to receive a fast pre-approval for your loan request. If you apply online, a loan representative will contact you via email within a few hours to inform you of the loan decision. You will also be notified by mail.

B) Print the Application

Click here to download the credit application. Your completed Residential Credit Application may be faxed to 608.249.5788 or mailed to:

Energy Finance Solutions
431 Charmany Drive
Madison, WI 53719

Click here to download the NYSERDA Residential Financing Product Information Sheet, which provides information regarding the features and requirements for both loan products.

C) Apply by Phone

Contact an EFS Loan Specialist at 800.361.5663 to apply by phone. Please note that, while you may obtain an initial pre-approval based on information provided by phone, you will need to submit a Residential Credit Application online, by fax, or by mail before your loan request can receive final approval.

D) Request an Application Packet by Mail

You may request an application packet by mail by calling 800.361.5663.

Supporting documentation: In order to fully process your loan request, you will need to submit the following information in addition to the Credit Application:

  • Proof of Income
  • ACH Authorization Form (Smart Energy Loans only)
  • Property tax bill (Smart Energy Loans only)
  • Additional items may be requested based on your particular income and credit history.
  • Submit by mail or fax to:

    Energy Finance Solutions
    431 Charmany Drive
    Madison, WI 53719
    Fax: 608.249.5788

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Assisted Home Performance with ENERGY STAR

New York residents with a total household income equal to or lower than 80% of State or Area Median Income(whichever is greater), may be eligible to receive additional financial incentives through Assisted Home Performance with ENERGY STAR. Click here for more information on Assisted Home Performance with ENERGY STAR.

To apply for Assisted Home Performance with ENERGY STAR, please download the application and return it with the required supporting documentation, to EFS.

Submit by mail or fax to:
Energy Finance Solutions
431 Charmany Drive
Madison, WI 53719

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