Starting today, January 31, 2012, “homeowners can use their utility bills to borrow money to help pay for new air conditions, boilers, hot water heaters and other home improvements that will save energy over time,” (Syracuse.com).
The program, known as the “on-bill recovery financing program,” allows homeowners to borrow up to $25,000 over 15 years at 2.99% interest to make approved home improvements and appliance purchases. “The amount borrow will be paid back on National Grid or other utility bills,” (Syracuse.com).
Besides convenience, the new option may offer lower costs as well. Additionally, because the loan installments are included on the utility bill, and carry the same penalties for nonpayment, including service termination, the on-bill loans are considered less risky.
Homeowners can start applying for the program today, regardless of their income. There is no income requirement to be approved for the program. The payback doesn’t kick in until May 31st and no interest will be charged to qualifying homeowners before then.
Homeowners must apply for the loans through the New York State Energy Research and Development Authority.