Understandably, financing actions such as weatherization, electrification, and new appliances can be an obstacle for many. What options are available to help pay for these projects?

While energy savings over time can reimburse a significant portion of the upfront costs, your Energy Navigator can help outline the incentives available to all income levels including tax credits, rebates, on-bill financing, and low interest loans. If you find this all overwhelming and bewildering, you aren’t alone. We completely understand how complicated this can be – that is why we are here to help!

Big Ideas:

• Start with an Energy Navigation and use the report to create a plan to reduce your energy costs. 
• Work with your navigator to understand what rebates, tax credits and/or free programs are available for your household income level
• Refine plan to take advantage of available resources. This could mean grouping work to take advantage of loan programs, or spreading work out over a number of years to maximize tax credits.
• Decide how much work to do and arrange financing if needed.
• Arrange work with Efficiency Vermont’s Efficiency Excellence Network (EEN) contractors if you plan to take advantage of rebate and/or loan programs. We can help you understand contractor quotes and answer any questions!

 A few Addison County energy cost facts:

• On average, the county’s median annual spending on household energy is ~$7,400 (about 9.8% of a median household’s budget). This includes $1,583 for electricity, $2,415 for home fuels, and $3,400 for transportation fuels. 
  • Despite varying median incomes, annual energy spending is pretty consistent across Addison County towns. Percent of income spent on energy varies town to town from 6.7% to 14.3%. 
• The cost of fossil fuels are consistently more volatile than electricity costs. Through Green Mountain Power, electricity costs are relatively stable and rising only slowly. Delivered fuel and gas costs, however, have jumped around wildly in the past 10 years, creating uncertainty for many while planning their budgets. The cost of piped gas (only available in Middlebury and Vergennes) is more consistent, but still produces significant greenhouse gas emissions.
• Electrifying heating systems with heat pumps typically saves money on heating costs compared to oil and propane. While winter electricity bills will increase, a household’s oil or propane bills will decrease – thus overall reducing a household’s energy expenditures.
• Weatherization/energy retrofit work (particularly air-sealing and providing consistent insulation) can save 10% to 50% of heating/cooling costs, depending on the extent of the work. 
• Heat pump water heaters have one of the best returns on investment, and are currently eligible for large Efficiency Vermont rebates (income dependent), and save an average of 1 ton of carbon per year.

Overview of Financial Resources Available:

• Efficiency Vermont and power company (GMP, VGS) rebates:
  • For weatherization and efficient electric equipment and appliances.
  • Bonuses are available for low/moderate income (under 120% of median income).
  • Efficiency Excellence Network contractors required. 
• Weatherization Assistance Program (WAP): 
  • Free weatherization available if income qualified.
  • Available through community service agencies like the Champlain Valley Office of Economic Opportunity (CVOEO).
• Weatherization Repayment Assistance Program (WRAP): on bill financing (through GMP or VGS): 
  • Can cover remaining costs of weatherization and electrification after rebates and tax credits.
  • 2% loan rate, up to 15 year term, carries with home if sold. 
  • Limited contractors for this program- Efficiency Excellence Network contractors required.
• Home Energy Loans ($25,000 max.): 
  • 0%-7%  loan rates available depending on income and term length (between 5 and 15 yrs).
  • Efficiency Excellence Network contractors required. 

For more details on financing options organized by household income and home type, in the Deep Dive section below.