local utility programs
Although these programs vary widely, VanderWerf said they usually pay the buyer or builder (or both) $150 to $1,500 for a home that meets a specified energy-savings requirement. Typically, these programs reward dollars for overall efficiency or for specific features, like Energy Star-rated appliances or energy-saving construction techniques.
Most metropolitan-area utilities offer rebates; if your local utility doesn’t, ask it to develop a rebate program, the consultant recommended. One Kansas City, Mo., builder in the audience said he and other area builders convinced one of their local utilities to start one, and after that, the other two area utilities followed suit.
VanderWerf mentioned that consumers who install solar energy systems, including photovoltaics and solar hot water heaters, qualify for a federal tax credit and often utility rebates. But even with the incentives, full systems still may cost tens of thousands of dollars, he added, and be cost-prohibitive for most buyers.
Builders and their clients can gather more information about tax credits for renewable energies and energy efficiency improvements to existing homes at the U.S. Department of Energy’s website.
association programs
Some trade associations also offer rebates and other incentives. For instance, VanderWerf said that when he was building with ICFs, the Portland Cement Association (PCA) provided him with $1,000 for the first home he built in a development, and up to $20,000 for 10 houses. A PCA official in the audience confirmed that those rebates still exist.
In addition, many trade groups will help a builder promote its green homes to the local media and may even pay for open houses. “This can be for as little as one house,” VanderWerf said.
energy efficiency mortgages
Typically, these mortgages offer better terms for buyers of green homes, such as slightly lower closing costs and interest rates. Most require that the home be green-certified by a well-recognized organization.
The energy efficiency mortgage doesn’t provide money to the builder, but it does allow buyers to qualify for larger mortgages—typically 5 percent to 8 percent more, which can help the pro sell more green homes, VanderWerf said.
But it can be hard to find out if lenders offer energy efficiency mortgages, he warned, because even if a national lender has a program, local branches often don’t know about it.
“Local lenders deal in five to 10 types of mortgages,” VanderWerf said, advising pros to always verify with a mortgage company that it offers energy efficiency mortgages before sending clients there. If a lender doesn’t offer such mortgages, ask it to develop a product, he added.
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