Residential Financing Options

NYSERDA offers the On-Bill Recovery, Smart Energy, Renewable Energy Tax Credit Bridge and Companion Loans to help New York State residents finance energy efficiency and renewable energy improvements made through NYSERDA’s programs. These loans provide lower interest rates to lower-income New Yorkers and to those who cannot qualify for traditional financing. Through our Companion Loan, you can access additional financing for projects that exceed the $25,000 cap on the On-Bill Recovery and Smart Energy loans. The Bridge Loan, allows you access to short-term financing to borrow a portion of the renewable energy system cost that maybe eligible for a federal or state tax income tax credit or a New York City Real Property Tax Abatement for eligible renewable energy system costs.

Talk to your participating contractor and select the loan that works best for you. Loans are not incentives or rebates and must be paid back.

These loan options can be used with the following NYSERDA programs:

  • Assisted Home Performance with ENERGY STAR®
    Offers income-qualified homeowners a comprehensive, whole-house approach to improving energy efficiency and home comfort while saving money. Use the loans for the purchase and installation of energy efficiency upgrades.
  • Residential energy efficiency and Comfort Home
    Identifies where your home is wasting energy and how you can save money and improve your home’s comfort year-round. Use the loans for the purchase and installation of energy efficiency upgrades that are not participating in the Assisted Home Performance with ENERGY STAR Program
  • NY-SunLink opens in new window - close new window to return to this page.
    Makes going solar accessible and affordable. Use the loans to purchase and install solar at home.
  • Renewable Heat NY
    Supports the installation of high-efficiency, low-emission, wood-heating technology. Use the loans to help pay for eligible costs associated with purchase and installation.
  • Air and Ground Source Heat Pumps
    Offers more efficient heating and cooling option that eliminate fossil fuels. Use the loans for purchase and installation costs.

On-Bill Recovery Loan

Apply Now Find Interest RateWith the On-Bill Recovery Loan, your monthly payments may not exceed your estimated average monthly energy cost savings. Your loan payments are built right into your utility bill so you will not have an extra bill each month. Your energy savings essentially pay for your work.

  • Unsecured
  • Interest rates are subject to change. For available residential interest rates, click on the Find Interest Rate button.
  • Loan payment is paid through your utility bill
  • Loan amounts from $1,500 - $25,000 with loan term of 5, 10 or 15 years
  • Balance may be transferred to new owner when home is sold
  • A declaration is filed with the County Clerk to record the obligation of the loan (this is not a lien on the property)
  • You must own the home and be named on the utility account
  • The home must be served by a participating utility, including: Central Hudson Gas & Electric, Con Edison, PSEG-Long Island, NYSEG, National Grid (Upstate NY customers only), Orange & Rockland, and Rochester Gas & Electric
  • Electric customers of PSEG Long Island may be eligible, but must apply directly through their utilityLink opens in new window - close new window to return to this page.

Smart Energy Loan

Apply Now Find Interest Rate

The Smart Energy Loan is a traditional loan that you repay monthly via check or automatic payment (ACH).

  • Unsecured
  • Interest rates are subject to change. For available residential interest rates, click on the Find Interest Rate button.
  • Loan amounts from $1,500 - $25,000 with loan terms of 5, 10, or 15 years
  • If you sell or transfer the property, you remain responsible for the balance of the loan
  • You must own the home or be an authorized representative of the property owner

Renewable Energy Tax Credit Bridge Loan

Find Interest RateThe Renewable Energy Tax Credit Bridge Loan is a short-term loan product which enables you to finance federal and state tax credits and the NYC Real Property Tax Abatement for eligible renewable energy system products.

The Bridge Loan has a balloon payment of principal and interest due at maturity and can be paid via check or ACH payment. You can pair this loan with a Smart Energy or On-Bill Recovery Loan (total cannot exceed $25,000) and a Companion Loan. To apply, speak with your contractor they can assist.

  • Unsecured
  • Interest rates are subject to change. For available residential interest rates, click on the Find Interest Rate button.
  • Interest accrues from loan origination
  • Loan amounts from $1,500 - $25,000 with loan term of 5, 10 or 15 years
  • Loan amount may not exceed the maximum of:
    • Federal income tax credit of 26% for systems installed in calendar year 2021 and 2022 and a tax credit of 22% for systems installed in 2023
    • The New York State income tax credit for solar projects equal to the lesser of $5,000 or 25% of the net project cost 
    • The NYC Real Property Tax Abatement of 5% of the net project cost (offered for a four-year period, but only one year can be included in the Loan)  
  • Consult with a tax adviser to confirm your tax credit/liability, and the anticipated impact on your federal or state income taxes
  • If you sell or transfer the property, you remain responsible for the balance of the loan
  • You must own the home or be an authorized representative of the property owner

Companion Loan

The Companion Loan can be used in conjunction with an On-Bill Recovery or Smart Energy Loan to access additional financing for projects that exceed the $25,000 cap on those loans. This a traditional loan that you repay via automatic payment (ACH) or check. The Companion Loan cannot be repaid from your utility bill like the On-Bill Recovery Loan. To apply, speak with your contractor they can assist.

  • Unsecured
  • Must utilize the $25,000 On-Bill Recovery and Smart Energy Loan before being eligible for Companion Loan
  • Interest rate of 6.49% (pay by ACH) or 6.99% (pay by check)
  • Loan amounts from $1,500 - $25,000 with loan terms of 5, 10, or 15 years
  • On Bill or Smart Energy Loan term does not have to be the same as Companion Loan term (example: Smart Energy can have 15-year term and Companion Loan can have a 5-year term)
  • If you sell or transfer the property, you remain responsible for the balance of the loan
  • You must own the home or be an authorized representative of the property owner

Loan Approval Criteria

The following table summarizes loan approval criteria for On-Bill Recovery, Smart Energy, and Companion Loans, but it is not a comprehensive list of loan underwriting guidelines. These standards are subject to change at NYSERDA's discretion.

Credit Score 540-599 600-679 680-779 780+
Debt-to-Income (DTI)* Up to 70%** Up to 75%** Up to 80%** No limit
Mortgage Payment History

Mortgage has been paid on-time for the past 12 months. No mortgage payments more than 60 days late during the past 12 months.

Bankruptcy, Foreclosure, Repossession History

None in the past 24 months

Outstanding Collections, Judgments, Liens and Charge-offs

May not exceed $2,500

* Debt-to-Income (DTI) is a measure of your existing debt payment obligations (mortgage, auto loan, student loan, credit card payments, etc.) to your income.

**DTI is up to 100% for applicants who qualify for the Assisted Home Performance with ENERGY STAR 50% discount and up to 80% for applicants who qualify for Affordable Solar Incentives or the Low or Medium Income (LMI) Pellet Stove Incentives.

Contact

If you have additional questions, please contact Energy Finance Solutions, NYSERDA's loan provider at 800-361-5663.