The U.S. Department of Housing and Urban Development (HUD) has announced that 18 national, regional and local lenders will participate in the PowerSaver program. PowerSaver is a new two-year pilot program that will offer qualified borrowers living in certain parts of the country low-cost loans to make energy-saving home improvements, including the installation of PV systems.
Backed by the Federal Housing Administration, PowerSaver loans will offer homeowners up to $25,000 to make energy-efficient improvements of their choice. Initially, the PowerSaver pilot program is estimated to assist approximately 30,000 homeowners to finance energy-efficient upgrades, though higher market demand may increase this impact.
According to HUD projections, more than 3,000 jobs will be created through this pilot program, and the impact may be larger if market demand for the loan program increases over time.
PowerSaver has been designed to meet a need in the marketplace for borrowers who have the ability and motivation to take on modest additional debt to realize the savings over time from home energy improvements, according to HUD. PowerSaver loans are only available to borrowers with good credit, manageable debt and at least some equity in their home (maximum 100% combined loan-to-value).