FHA PowerSaver Loan Program
Amount: $7500.00 to $25000.00
Federal Housing Administration (FHA) PowerSaver loans provide three financing options for homeowners to make home energy efficiency and renewable energy upgrades or improvements. FHA PowerSaver financing products are insured by the FHA.
PowerSaver started as a 2-year pilot program in 2011. The U.S. Department of Housing and Urban Development (HUD) and the FHA developed PowerSaver as part of the Recovery Through Retrofit initiative launched in May 2009.
Eligible home energy upgrades include, but are not necessarily limited to, the following:
- A whole home upgrade through Home Performance with ENERGY STAR
- Insulation and air sealing
- Replacing doors and windows
- Upgrading heating, ventilation, and air-conditioning systems and hot water systems
- Home automations systems and controls (e.g., smart thermostats)
- Installing solar photovoltaic (PV) systems, solar thermal hot water systems, small wind power, or geothermal heat pumps
Availability and Eligibility
For all three PowerSaver products, borrowers must select from a list of approved PowerSaver lenders and locations. PowerSaver products are not currently offered in all states, so all potential applicants are encouraged to first check the program website to ensure product availability in their location.
PowerSaver is available to borrowers with good credit and manageable overall debt.
PowerSaver Home Energy Upgrade—Up to $7,500
This unsecured consumer loan is intended for smaller projects (e.g., insulation, air and duct sealing, water heating, replacing heating and cooling equipment, etc.). It does not require a home appraisal or lien on the property. Single-family homeowners may qualify for the loan if they have manageable debt and a credit score of 660 or higher. Interest rates vary, but typically range from 4.99% to 7.75%. PowerSaver participating lenders, markets, and contact information is available here.
PowerSaver Second Mortgage (Title I)—Up to $25,000
This Title I loan is intended for financing larger retrofit projects, including energy efficiency, PV, solar hot water, geothermal, or other renewable energy projects. A home appraisal or equity is generally not required, but PowerSaver lenders may request it if required by their investor. Borrowers cannot currently have an existing home equity loan, a second lien, or second mortgage to qualify for this product. Interest rates vary but typically range from 4.99% to 9.99%, and the maximum loan term is 20 years. PowerSaver Title I participating lenders, markets, and contact information is available here.
PowerSaver Energy Rehab (203(k))—First mortgage up to FHA loan limits
This 203(k) loan is for home purchase or refinance, targeting either home buyers wishing to combine home improvements with a home purchases or to homeowners wishing to include home improvements when refinancing an existing mortgage. It is FHA-insured up to 100% for a home purchase or refinance, plus the cost of a home improvement project. Current loan limits for a single-unit property vary by area from $217,500 to $625,000 (higher amounts are permitted for two-, three- and four-unit properties); specific loan limits for an area can be found at this website. In order to qualify as a 203(k) PowerSaver loan, at least $3,500 of the home improvements must consist of eligible PowerSaver measures. PowerSaver 203(k) participating lenders, markets, and contact information is available here.
The two types of PowerSaver 203(k) loans are Standard and Streamlined. Standard 203(k) loans are for major improvements, where a home improvement project costs at least $5,000 and includes $3,500 in energy upgrades. The Streamlined 203(k) loans are for minor home improvements, where the home improvement project cost must not exceed $35,000. A HUD consultant is only required for oversight of home improvements for Standard 203(k) loans.
Alliant Energy Iowa – Residential Energy Efficiency Rebate Program
Amount: $0.00 to $3500.00
Alliant Energy offers a number of rebates for energy efficiency for Iowa residential customers a variety of high efficiency heating and cooling measures, including air conditioners, gas furnaces and boilers, heat pumps and thermostats. After completing an energy audit, a residential customer is eligible for up to $500 in rebates for attic and $500 for wall insulation up to 70% of costs. Qualifying attic insulation will have a rating of R-19 to R-49. More details, the incentive application, and an energy audit request form are available on the program web site.
- ENERGY STAR New Construction: $500-$3500/home
- Home Energy Audit: Free
- CFLs: 50% of cost
- Light Fixtures or Fan: $20/unit
- Central Air Conditioners: $100 or $200 depending on SEER
- Geothermal Heat Pumps: $300/ton + $50/EER/ton
- Desuperheater: $100
- Insulation: 70%
- Windows/Sash: $20
- Appliance Recycling: $20
- Room A/C: $25
- Freezer: $25
- Refrigerator: $50
- Electric Tank Water Heater EF 0.93 or Higher $50
- Heat Pump Water Heater $100
- Natural Gas Water Heater EF 0.67 or Higher $75
- Natural Gas Condensing Water Heater EF 0.90 or Higher $300
- Natural Gas Tankless EF 0.80 or Higher $300
Alliant Energy must supply primary heating energy.
Home must be built before January 1, 2001.
Linn County Rural Electric Cooperative – Solar Water Heater Rebate Program
Incentive Type: Utility Rebate Program
Eligible Renewable/Other Technologies: Solar Water Heat
Applicable Sectors: Commercial, Residential, Agricultural
Eligible System Size: Auxiliary tank must be at least 40 gallons
Equipment Requirements: Must be Energy Star rated
Linn County Rural Electric Cooperative Association (Linn County RECA) is a member-owned cooperative. To encourage energy efficiency, Linn County offers a number of rebates to commercial, residential, and agricultural customers. Owners of both new construction and existing buildings are eligible for a $500 rebate for solar water heaters. The water heaters must have an auxiliary tank of at least 40 gallons and the solar water heater must be Energy Star rated. See the program web site for applications and more information.
Home must be built before January 1, 2001.
Residential Geothermal Energy Credit
Residential Energy Efficient Property Credit (Section 1122): This nonrefundable energy tax credit will help individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. ARRA removed some of the previously imposed maximum amounts and allows for a credit equal to 30 percent of the cost of qualified property.