Thursday, Dec. 14, 2023 | 1 p.m.
A new loan program for Nevada homeowners seeking to make energy-efficient improvements will have a limited reach. But Nevada Clean Energy Fund officials plan to use what’s available to win more federal energy infrastructure funding.
The Residential Energy Upgrade Program, a federally funded program administered through the Nevada Clean Energy Fund, will provide unsecured loans to homeowners for improvements that make their houses more efficient.
That could mean anything from more efficient water heaters and heating and air conditioning replacements to solar power installations, electric vehicle chargers and better insulation.
Program Manager Will Pregman said NCEF plans to close at least 75 loans in the program’s first year, which began last month.
Nevada Clean Energy Fund CEO Kirsten Stasio said programs like Re-Up show the federal government that Nevada is ready for additional investment.
“We're launching this program at a time when the federal government is making an historic amount of funds available for clean energy, hundreds of billions of dollars,” Stasio said. “Nevada needs to build its capacity to take advantage of these funds and capture our fair share.”
“Part of the reason why we were created in the way we were was to create these revolving loan funds, so we can put funds back into these programs, scale and reach more people over time,” Stasio said.
Stasio said the program is aimed at people who will be able to pay back the loans.
NCEF will direct homeowners with incomes under 200% of the federal poverty line to other resources, such as the Nevada Weatherization Assistance Program. The Solar and Energy Loan Fund will underwrite the loans.
The loans range from $3,000 to $25,000, with fixed interest rates between 5% and 9% paid over the course of three to 10 years.
Solar loans can go up to $30,000 at interest rates between 5.5% and 7.5%. Depending on the project, applicants may need to pay a 2.5% origination fee and a project management fee between 2.75% and 2.99%.
To qualify, applicants must be current on their mortgages, auto loans, credit cards, property taxes, and can’t have filed bankruptcy within the last year. Depending on an applicant’s credit history, they might need to pay 3% of the project cost or find a co-signer.
Nevada homeowners must prove they have the ability to pay, either through employment, Social Security or disability benefits.
“The flexible method of underwriting is designed to prevent someone in the first place from being caught up paying for something that they wouldn’t be able to pay, because it’s based on their ability to pay rather than a credit score,” Pregman said. “It’s more of a cash flow analysis.”
The Nevada Legislature created NCEF in 2017. It offers unsecured loans for energy audits and projects such as heat pumps, insulation, roofing and solar-powered infrastructure. The nonprofit also directs customers to a list of vetted contractors.
Stasio said Nevada residents spend more than 20% of their income on electricity, natural gas and gasoline, and the loan program will help them lower their household energy costs.
“I hear, all too often, stories of the veterans who have to make the hard choice between paying their energy bills and buying food and medicine,” Stasio said.
She said the Re-Up program serves a second function. NCEF workers can tell applicants about federal programs for home rehab, rebates, tax credits and other incentives.
State Assemblywoman Shondra Summers-Armstrong said the program will help low income households whose homes are in disrepair.
“This project is going to be a catalyst in our community to help my neighbors who have not been able to afford to do repairs on their homes to be able to do so in a manner that is not going to put their properties at risk,” Summers-Armstrong said.
Assemblyman Howard Watts called the program “incredible.”
“We have abundant sunshine and other clean resources, and it’s time we help every family in Nevada take advantage of that and the economic benefits it brings,” Watts said.
