Homeowners on Long Island now have another way to pay for energy improvements to their property, including rooftop solar panels, after PSEG-Long Island agreed earlier this summer to participate in “on-bill financing” for energy improvements.
The repayment terms would be based on the projected energy savings of the home improvement.
The New York State Energy and Research Development Agency (NYSERDA) is sponsoring the on-bill recovery loan program, which has already been rolled out in neighboring states, and has been eagerly anticipated by the solar industry here for several years.
In order to participate in the program, homeowners need to first receive a comprehensive home energy assessment from a BPI-accredited contractor to determine the most effective methods of reducing their energy costs.
For residential customers, loans are available for up to $13,000, or up to $25,000 with higher cost-effectiveness standards, with repayment periods of 5, 10, or 15 years. The interest rate is currently 3.49 percent and the monthly payment may not exceed the estimated energy cost savings, meaning the price of the energy you’d save by making the improvements should cover most or all of your loan payment.
The loan payments will appear as a separate line item on energy bills and are transferable if the property is sold.
For small business and nonprofit organizations, loans of up to $100,000 at half the market interest rate and on-bill recovery loans of up to $50,000 at 3 percent interest are available, with repayment periods of up to 10 years.
For more information, call 1.800.361.5663 or access the application online here.