Maryland Home Energy Loan Program Commits First $100,000 for Homeowners' Efficiency Improvements

Two months after its introduction, the Maryland Home Energy Loan Program (MHELP), which enables Marylander homeowners to access unsecured, low-cost, funds for efficiency upgrades, has cleared its first $100,000 in loan commitments.

“These measures not only help save on energy costs but could also make for a more comfortable home during heating and cooling seasons.”

“Ultimately, the goal is to help consumers reduce the cost of their power bills. We understand that most families don’t have extra money to make an investment in home improvements that an energy auditor might recommend, but might be inclined to implement the recommendations if the money was available. This program allows a consumer to borrow money for efficiency improvements at a very attractive rate without racking up high interest credit card debt or tying up the equity in their home,” said I. Katherine Magruder, Executive Director of the Maryland Clean Energy Center, which administers the MHELP program with funds from the Maryland Energy Administration and the federal 2009 American Recovery and Reinvestment Act.

MHELP is designed to help achieve Governor O'Malley's four-pronged energy strategy that includes reducing per capital peak demand for energy 15% by 2015 (from a 2007 baseline). Efficiency improvements also reduce harmful greenhouse gas emissions, help create green jobs by boosting demand for more certified energy auditors and contractors and, where appropriate, identifies where renewable energy systems that can supplant homeowners' need for electricity supplied by the power grid.

Homeowners interested in exploring a loan from MHELP need to complete a home energy audit by a certified auditor if they haven't done so within the past six months. The resulting assessment is likely to recommend several ways a home can save energy. Thus far, the Maryland Clean Energy Center has committed about $120,000 for loans to homeowners throughout the state.

As expected, most home improvement applications since the MHELP program launched in late December encompass upgrading insulation, plugging air leaks, sealing ducts and replacing furnaces, heat pumps and/or air conditioners that are at least 10 years old. “These measures not only help save on energy costs but could also make for a more comfortable home during heating and cooling seasons,” Magruder said.

With audit recommendations in hand, Marylanders can go to http://mcecloans.org/ to apply. These loans do not need to be secured by the owner's home or other large asset. The clean energy loan amounts are capped at $20,000. The rate is 6.99%. Most unsecured loans at commercial banks carry interest rates at twice that rate. Some interest rates are rising as the economic recovery picks up momentum.

The approval process typically takes a few days. Improvements need to be performed by contractors with a Maryland Home Improvement Certification. Lists of both qualifying auditors and contractors are available at http://www.mdhomeperformance.org/findacontractor.php.

Homeowners with proof of a qualifying audit within the past six months can proceed immediately to the application.

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Maryland homeowners offered low-cost efficiency loans

Homeowners in Maryland can now apply for low-cost loans to support energy efficiency upgrades from the Maryland Clean Energy Center.


The Center has launched a new Maryland Home Energy Loan Program to help fund upgrades including better insulation and higher-rated heating and cooling equipment.

Using economic stimulus funding, the program will help the state in its goal of reducing carbon emissions by 20% by 2025.

In order to apply for a loan, homeowners must first have a home energy audit carried out by a certified auditor, which will recommend ways that their homes can save energy. Homeowners who have had a qualified audit since July 1, 2010, can apply immediately.

With an audit in hand, homeowners can apply for up to $20,000 each toward home energy improvements, with interest rates for the loans set at 6.99%.

The approval process for the loans takes a few days, and improvements will need to be carried out by certified contractors.

The Maryland Energy Administration, the administrator of state stimulus funds, believes most home improvements will include upgrading insulation, plugging air leaks, sealing ducts and replacing furnaces, heat pumps and/or air conditioners that are at least 10 years old.

Maryland Clean Energy Center Executive Director Kathy Magruder said: “This month’s cold spell is a potent reminder of steps to save money by making our primary residences more energy efficient. A growing number of new Maryland businesses provide energy audits and will help consumers more easily implement the home improvements recommended in those audits.”

Malcolm Woolf, Director of the Maryland Energy Administration, added: “Building on the recent successes of our Home Appliance Rebate Program, these Low-Cost Home Efficiency Loans will help keep money in Marylanders’ pockets and bring our state closer to meeting our EmPOWER Maryland goal of reducing energy consumption by 15% by 2015.” Originally posted here

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