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Residential Financing Programs

Home energy upgrades, from heat pumps to solar panels and insulation, can lower energy costs and pay for themselves over time through energy savings. Still, many homeowners use a combination of incentives, such as rebates and Inflation Reduction Act tax credits, and financing, to cover the cost of energy upgrades.

NYSERDA offers a suite of loans to help New York State residents finance energy efficiency improvements and clean energy equipment.

Prior to accessing a NYSERDA loan, homeowners must complete a no-cost energy assessment that provides an overview of a home’s energy use and identifies energy-saving opportunities and services for consideration. Homeowners may use loans to cover the costs of a variety of energy upgrades through the following programs:

Comfort Home Program
EmPower+
Home Comfort – PSE&G Long Island
NY-Sun
NYS Clean Heat
PSE&G Home Performance Program

Residential Financing Options

Homeowners could be eligible for up to $25,000 in loans for energy efficiency improvements or clean energy equipment at one- to four-family residential properties. Interest rates, repayment terms, and cost effectiveness requirements vary between each type of loan. Loans are not incentives or rebates and must be paid back. Loans over $13,000 are required by the Green Jobs Green New York (GJGNY) legislation to have a payback period of less than 15 years.

Homeowners can work with a participating contractor to help select the loan that works best for their home energy project.

On-Bill Recovery Loan

Apply NowFind Interest RateWith the On-Bill Recovery (OBR) Loan, your loan payments are paid as part of your utility bill. Estimated average monthly energy cost savings must be greater than monthly loan payments to use the OBR loan.

Technologies covered: Purchase and installation of solar photovoltaic systems, ground source heat pumps, air source heat pumps, and energy efficiency improvements.

Eligibility:

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 utility

Loan terms:

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 as long as written notice is provided to new owner
A declaration is filed with the County Clerk to record the obligation

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).

Technologies covered: Purchase and installation of solar photovoltaic systems, ground source heat pumps, air source heat pumps, and energy efficiency improvements.

Eligibility:

You must own the home or be an authorized representative of the property owner

Loan terms:

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

Renewable Energy Tax Credit Bridge Loan

Find Interest RateThe Renewable Energy Tax Credit Bridge Loan (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 (combined total cannot exceed $25,000). Speak with your contractor for assistance applying.

Technologies covered: Purchase and installation of solar photovoltaic systems, air source heat pumps, ground source heat pumps, and energy efficiency improvements.

Eligibility:

You must own the home or be an authorized representative of the property owner

Loan Terms:

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 2 years
Loan amount may not exceed the maximum of:
- Federal income tax credit (based on net project cost):
- The New York State Income tax credit for solar and ground source heat pump 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

Loan Approval Criteria

The table below summarizes credit approval criteria, but it is not a comprehensive list of loan underwriting guidelines. These standards are subject to change at NYSERDA's discretion.

Loan Approval Criteria

Credit Score	540-599	600-639	640-679	680-719	720+
Debt-to-Income (DTI)*	40%	45%	50%	60%	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 24 months.
Bankruptcy, Foreclosure, Repossession History	None in the past 24 months
Outstanding Collections, Judgments, Liens and Charge-offs	May not exceed $2,500
Prior GJGNY Loans	No customer will be eligible for a GJGNY Loan if the customer has a prior GJGNY Loan outstanding that is 30 days or more delinquent.

* 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.