Loans Available to Help with Energy Upgrades

Statement

By Governor Dave Heineman

Dear Fellow Nebraskans:

With the growing interest in conserving energy and finding ways to manage higher utility costs, I want to share information on a statewide loan program that helps Nebraskans finance improvement projects that save money by lowering energy use.

Nebraska's Dollar and Energy Saving Loan program provides low interest loans of five percent to help homeowners and others ranging from farm operations to local government and non-profit groups.

Offered through a partnership between the Nebraska Energy Office and lending institutions across the state, loans can be used to help Nebraskans make energy saving improvements to their home, business, farm, or ranch.

While natural gas and propane costs have stabilized for the time being, they are likely to go higher as economic factors adjust and weather conditions change from season to season. Electricity rates for many Nebraskans have already increased or are expected to rise in the coming year.

The Dollar and Energy Saving Loan program encourages residents and commercial operations to replace aging furnaces, seal homes and other buildings against air leaks, replace drafty windows, or add insulation. These steps all help reduce energy costs.

Since 1990, nearly 25,000 loans totaling $198 million have been approved with more than 90 percent of all projects helping finance improvements on homes across Nebraska.

The program is used most often to replace furnaces, heat pumps and air conditioners. Other qualified upgrades include adding insulation, installing new doors and windows, upgrading to Energy Star rated appliances and office equipment, as well as installing telecommunications equipment that reduces the need to travel and associated costs.

Farms and ranches can lower energy bills by upgrading to more efficient equipment for irrigation and grain-drying systems. Loans can also be used to make energy improvements to buildings owned by non-profit organizations and local governments. A complete list of qualified projects can be found online, and other energy improvements may be eligible for financing based on an energy saving analysis.

Loans are obtained by getting a price quote or bid for the improvement project and completing one of the loan application forms available on the Energy Office Web site, http://www.neo.ne.gov. Application forms outline the types of projects that are pre-qualified for Dollar and Energy Savings Loans and their minimum requirements.

Once completed, application forms and bid or pricing information can be taken to a bank, savings and loan or credit union of the owner's choice for processing. Most Nebraska-based financial institutions participate in the program. Lenders will work with the Energy Office and notify applicants when their project is approved, usually within a couple of weeks.

In order to be eligible for a loan, improvement and upgrade projects must be approved before work is started. Energy Office staff can help connect potential applicants with participating lenders nearby. Additional information is available online or by contacting the Energy Office at 402-471-2867 or via email at energy@nebraska.gov.

Source