Emporia
Emporia Classic Level 2 48 AMP EV Charger UL Listed
The Emporia Classic Level 2 48 AMP EV Charger UL Listed is a home charging solution designed for electric vehicle owners seeking efficiency, safety, and smar...
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Money Talk
Financing Home Energy Efficient Upgrades: How To Guide
As sustainable home building becomes ever more mainstream, thousands of homeowners consider energy-efficient and sustainable homes to be a better investment of their money. Sustainable homes are more durable and resilient. They can save you money in the long run by reducing the residents' amount of water and energy. However, these new homes and retrofits can cost you more money upfront, depending on how you place your priorities. There has been a strong push to lower the cost of some of the more expensive features found in more energy-efficient homes. Despite these efforts, thousands of homeowners cannot secure financing for the expenses that sustainable home building and renovations bring. Fortunately, there are several strategies to find financing alternatives for either new home construction or retrofits to your existing home.
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By Tobias Roberts, Rise Writer
Mar 3, 2025 · 6 min read
How Do You Present Sustainable Upgrades To Banks?
Mortgage lenders tend not to be the most flexible institutions in the financial world. However, homeowners can use strategies to demonstrate to the bank the financial sturdiness of your plans to build or retrofit a sustainable home.
Firstly, make an effort to show the bank the potential savings associated with your building plan. You might even consider hiring a certified energy auditor or advisor to document the expected energy savings associated with the blueprint for your new home construction or sustainable retrofit. Your energy advisor will be able to identify certain rebates and incentives that are available to you. These rebates and incentives will further increase your expected monthly savings.
Secondly, consider utilizing a simple mortgage calculator to experiment with increased mortgage costs. You can then compare how these costs correspond to your expected savings through energy-efficient upgrades to your building plan. You may be able to convince your bank to offer a lower interest rate if you can demonstrate that the savings offset the higher monthly payments.
Show your bank how sustainable upgrades to your home will increase your home's value and help it maintain its premium price into the future. For example, a Berkeley Lab study demonstrated how solar panels add significant long-term value to a home.
What Are Alternative Financing Options for Sustainable Homes?
Suppose your local bank or mortgage lender is not prepared to finance the upgrades. You do not necessarily have to throw away your dreams of living in a beautiful and energy-efficient home. Below are several alternative financing options designed for homeowners looking for sustainable housing options.
Green Energy Money (GEM)
Green Energy Money (GEM) is an alternative financing company specially designed for energy efficiency and renewable energy, new construction, and retrofit projects. This company works with mortgage lenders, builders, utility companies, and others involved in designing, constructing, and financing energy-efficient homes. They have standardized a green appraisal method that has made visible a "recognized green premium" for energy-efficient homes. According to their website, "these methods have been accepted and approved by the national mortgage and appraisal industry organizations and meet all regulatory compliance guidelines." GEM offers several free online calculators, such as an accelerated mortgage repayment calculator, incremental property value calculator, and a loan to value calculator. These calculators help you evaluate the costs versus potential paybacks of your sustainable construction.
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Article by
Tobias Roberts
Tobias runs an agroecology farm and a natural building collective in the mountains of El Salvador. He specializes in earthen construction methods and uses permaculture design methods to integrate structures into the sustainability of the landscape.
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