April is Earth Month, the perfect time to discover ways you can make your home more energy efficient. Tackling home improvement projects can be simple, especially if you’re using an energy-efficient loan such as Travis Credit Union’s Go Green loan. Such loans provide you with resources now so you can begin saving on your energy costs sooner rather than later. Plus, you’ll be helping the environment. In this blog, we’ll discuss how you can save better with a Go Green Loan in honor of Earth Month and Earth Day on April 22.
Determine the Upgrades You’ll Need
Depending upon the age of your home, there may be a few upgrades that are needed which can have a big impact on reducing your home’s energy consumption. These include replacing your windows; heating, ventilation and air conditioning (HVAC) system; and your appliances, such as refrigerators, washers, dryers and dishwashers.
What Is Go Green Financing?
The Go Green Home Energy Financing program was created by the State of California to offer financing for residential energy upgrades. No equity is required to qualify but the homeowner must be a PG&E customer. The loan is offered through various approved lenders, including Travis Credit Union.
What Does Go Green Financing Cover?
Go Green Financing requires that homeowners use the loan only to pay for projects that improve their home’s energy efficiency. The types of eligible upgrades include:
- Appliances: Home appliances age over time, becoming less efficient as they use more and more electricity or gas. Switching to new Energy Star-rated appliances is covered under Go Green Financing. Upgrading not only saves you money, but your new appliances may come with smart technology, such as Wi-Fi-enabled controls that make them easier to use and monitor.
- Solar Panels: Solar panels offer homeowners the opportunity to produce clean energy directly from the sun. This energy is stored in batteries that can be used to power your home and, in many cases, be sold back to your local electricity company.
- Heating and Cooling: Your central heating and air-cooling system uses energy to keep your home’s temperature comfortable depending on the season. Upgrading to a more energy-efficient system can save you money, reduce the impact on the environment and still keep your home pleasant.
- Windows: Having drafty windows can cause your home’s HVAC to work harder to keep your home at a desired temperature. This reduces your home’s efficiency and increases your monthly electric or gas bills. Be sure to inspect your windows and doors for any leaks. They often can be fixed with caulking or other materials that can stop leaks. If new windows are needed, a Go Green loan is the perfect way to finance that major project.
- Water Heating: Ensuring your home has hot water is important for bathing and washing clothes and dishes. Upgrading to a more efficient water heater – such as a heat pump water heater, gas storage water heater or tankless water heater – will ensure the water is hot when you need it.
Go Green loans can also finance LED lighting, a whole house fan, certain types of roofing, insulation and pool pumps.
What Are the Potential Savings?
Making energy-efficient updates to your home can help lower your energy bills. Energy Star reports that having certified windows can reduce your energy bill by about 12%. Energy Star appliances can significantly reduce your energy bills. Appliances account for about 20% of your home's electricity bill, so upgrading your appliances can save you real money.
How Do I Get Started?
It’s easy to apply for Go Green Financing. First, apply through an approved lender, such as Travis Credit Union. Then, select an approved Go Green contractor to get a project estimate. If it’s a self-installed project, it must be from this approved list. Wait for confirmation from TCU to start your project. Once notified, sign your loan’s closing documents and you’re ready to start.
Keep in mind that Go Green Financing focuses on energy-efficient home improvements only. If you are unsure that your project meets the requirements, visit the State of California’s Go Green Financing webpage to see the list of requirements.
Other Ways to Finance Your Project
There are other loan options if Go Green Financing does not work for your situation. These include a home equity line of credit, home equity loan or personal loan. A home equity loan lets you borrow from the available equity in your home without the need to refinance your current mortgage. A home equity line of credit (HELOC) is a line of credit that taps into your home’s equity.
A personal loan can also be used to make upgrades to your home. There is no collateral needed, so this loan may be quicker to get than home equity financing, which requires a bit more documentation to establish the lien.
How TCU Can Help
Travis Credit Union has partnered with local contractors to provide easy and affordable financing through Go Green lending. To date, TCU has helped to avert an estimated 1,003 tons in greenhouse gas emissions through energy-efficient projects financed with Go Green loans. Visit our Energy-Efficient Project Loans hub to get started.
If you’re interested in other funding options for your projects, or want to learn how TCU focuses on your financial wellness, visit us at Traviscu.org.