ROCKVILLE, Md.--(BUSINESS WIRE)--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.
“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.
The Maryland Clean Energy Center exists to grow the residential and business markets for energy efficiency and renewable energy, help clean energy entrepreneurs launch and scale up their businesses in Maryland and advise state policymakers on the economic development benefits of a more robust clean energy economy in Maryland.