The author of today’s post, Jeffery Greenblatt, Ph.D., is a scientist at Environmental Defense specializing in low-carbon energy technologies.
Consumers and businesses alike complain that it takes years for savings on energy bills to repay the up-front costs of energy efficiency. No longer. As the Wall Street Journal recently reported, lenders have discovered what energy analysts have known for years: loans for energy efficiency improvements are low-risk, because borrowers can "finance" these loans through lower energy payments.
Energy-efficient mortgages have been available for some time, but lenders didn’t promote them, and customers resisted the extra inspections and paperwork. Now to get home buyers interested, banks are offering incentives of $500-$1000 off closing costs. Everybody wins: consumers save money, lenders make a profit, and the atmosphere enjoys lower carbon emissions.