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Pennsylvania's Special Energy Efficiency Loan and Rebate Program

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Title: Pennsylvania's Special Energy Efficiency Loan and Rebate Program


1
Pennsylvania's Special Energy Efficiency Loan
and Rebate Program HP 101 Training
2
What is Keystone HELP ?
  • Keystone HELP, Pennsylvania's special program
    for Energy Efficient Home Improvements now has
    lower rates and new rebates as a result of the
    Alternative Energy Investment Fund Act (Act 1).
  • Principally supported by the Department of
    Environmental Protection, Pennsylvania Treasury
    Department and the Pennsylvania Housing Finance
    Agency
  • Pennsylvania homeowners can improve the energy
    efficiency of their homes with special financing
    and rebates for high efficiency heating, air
    conditioning, insulation, windows, doors,
    geothermal and whole house improvements using
    Home Performance with Energy Star.

3
History of Keystone HELP
  • Lehigh Valley-based energy efficiency lender, AFC
    First started Keystone HELP with the West Penn
    Power Sustainable Energy Fund in 2005 as an
    enhanced version of AFC Firsts EnergyLoan
    program for higher efficiency improvements.
  • The Pennsylvania Treasury Department helped
    expand Keystone HELP statewide in 2006 with a
    commitment of 20 million in lower cost funding,
    which resulted in lower rates to consumers on
    unsecured loans of up to 10,000.
  • A great success with 3,500 loans and over 19
    million funded
  • Complete statewide reach with loans made in 65
    counties and a network of 1,000 AFC
    First/Keystone HELP Approved Contractors.

4
History of Keystone HELP
  • Expanded in late 2007 in cooperation with the
    Pennsylvania Housing Finance Agency with the
    creation of the Keystone HELP RR Energy Loan
    for larger amounts, up to 35,000.
  • As a result of the Alternative Energy Investment
    Fund Act, the Department of Environmental
    Protection has committed funds to expand the loan
    program, reduce interest rates and create a new
    rebate program for high efficiency and whole
    house improvements.
  • Pennsylvania Treasury Department and Pennsylvania
    Housing Finance Agency continue to provide the
    core loan capital.
  • AFC First administers the program providing
    contractor management and training and all loan
    and rebate processing and servicing.

5
Who is AFC First?
  • Lehigh Valley, PA - based energy efficiency
    lender founded in 1947, processed over 50,000
    energy efficiency loan applications
  • One of three FannieMae Energy Lenders in the
    nation, only one based in the eastern United
    States.
  • Provides its EnergyLoan program in fifteen states
    from Maine to the Carolinas with over 2,000
    Approved HVAC and energy efficiency contractors.
  • Administers Connecticut state solar leasing
    program, CT Solar Lease.
  • Focus is on simple, contractor-driven residential
    and commercial energy efficiency programs
    including training, marketing support, education
    and web integration.
  • In process of creating Great Bear banking
    platform for geographic and programmatic
    expansion.

6
How Do Americans Pay to Improve Their Homes
Energy Efficiency?
7
Two Types of Energy Efficiency Customers
REACTIVE
HVAC Estimate
8
Two Types of Energy Efficiency Customers
PROACTIVE
I Must Reduce My Energy Bills!
HVAC Estimate
9
Monthly Payment Affordability is the KEY!
  • Customers may have an interest in more efficient
    systems or improvements but may be put off by
    higher price.
  • Average American current available cash is 3,000
    to 7,000..What is your average installation
    cost?
  • If a contractors closing ratio is 40, whats
    happening to the other 60 - why arent they
    buying?
  • Is it the Contractors reputation?
  • Is it the Price?
  • In todays economy are they scared of gimmick
    financing?
  • Or is it simply that they are not being given
    an affordable monthly payment option that
    comfortably fits their budget and can be offset
    by energy savings?

10
Welcome to the Twilight Zone REACTIVE Consumer
  • Typical urgent HVAC or home repair
    installations (3,000 to 15,000) are the
    financing twilight zone - too big for a credit
    card, too small for a home equity loan.
  • Time sensitive consumer needs work done ASAP
  • Contractor-Driven
  • Come-on Financing is not the answer for a major
    capital purchase
  • Borrower wants longer term or lower rate than he
    can get from bank
  • Solution Unsecured point of purchase loan
    programs with (lower rates based on simple
    product qualification ENERGY STAR)

11
The Thinker PROACTIVE Consumer
  • Larger whole house improvements (5,000 to
    35,000)
  • More project driven, less time sensitive
  • Interest Tax Deductibility a bigger deal
  • More customer thought, engagement and foresight
  • Contractor is more a consultant, less a sales
    person
  • Consumer with home equity can get a good rate
    from own bank, unless state sponsored program is
    more attractive
  • Consumer with good credit but limited home equity
    has no viable market-based option
  • Solution Home Performance model with Energy
    Audit, recommendations and better than market
    financing

12
Keystone HELP Addresses Both Reactive and
Proactive
  • FOR THE REACTIVE ENERGY IMPROVEMENT
  • Low Rate Unsecured Loan - 6.99, 10 Year Termor
    up to a 250 Rebate for ENERGY STAR Improvements
  • Lower Rate Unsecured Loan 5.99 or up to a 500
    Rebate for Advanced Performance Improvements
  • FOR THE PROACTIVE ENERGY IMPROVEMENT
  • Lowest Rate Loans 4.99 Unsecured, as low as
    3.875 Secured plus a 325 Energy Audit Credit for
    Whole House Improvements recommended by Certified
    Energy Audit that predicts a minimum 15 to 25
    energy savings (depending on homes energy
    profile)

13
Keystone HELP Special Loan Features
  • Unsecured Keystone HELP Loans 1,000 -
    15,000
  • Lower rates (from 4.99) and longer terms (up to
    10 years) than available from banks or credit
    unions
  • Fixed rate and fixed payment for term not
    adjustable like most credit cards no surprises!
  • No pre-payment penalty pay off whenever you
    like
  • Fast, simple, no fees or charges to consumer or
    contractor
  • Secured Keystone HELP Loans 5,000 - 35,000
  • Lowest rates (from 3.875 for Whole House
    Improvements) better than bank home equity
    rates
  • Up to 120 of homes value most banks stop at
    75
  • Fixed rate and fixed terms up to 20 years
  • First, Second or Third Lien

14
More Energy Savings Lower Loan Rates and Best
Rebate
15
Important Info
  • All qualifying equipment and material must be new
    and installed by an Approved Keystone HELP
    Contractor
  • Rebates are available only for projects completed
    after the programs effective date of Feb 23,
    2009, Loans are available only for projects
    initiated after the programs effective date of
    Feb 23, 2009.
  • An Eligible Applicant is permitted to receive
    only one rebate or one loan during each fiscal
    year, which is defined as the period from July 1
    until the following June 30. Eligible Applicants
    may apply for additional rebates or loans in
    future years, as long as the additional projects
    comply with the published guidelines current at
    the time of application.

16
Who is Eligible?
  • Pennsylvania homeowners who
  • Own and are making qualifying improvements to
    their primary residence located in Pennsylvania
    and 
  • Whose combined annual household income is
    150,000 or less
  • The Keystone HELP RR ENERGY STAR Loan (or other
    AFC First non Keystone HELP loans) may be
    available for homeowners whose income exceeds
    150,000 please contact us for details.  
  • Improvements must be made to 1 to 2 unit
    owner-occupied dwellings. Work under the secured
    Whole House Improvement Loan or Renovate and
    Repair ENERGY STAR Loan programs must be done on
    a 1-2 unit owner occupied, deeded property.
  • If you are applying for financing under the
    Keystone HELP program, you must meet the credit
    eligibility standards of the program.

17
What Improvements Are Eligible?
  • ENERGY STAR rated Heating and Cooling (All Fuels)
  • ENERGY STAR Water Heaters, Fans, Thermostats
  • ENERGY STAR Closed Loop GeothermalAbove must be
    listed on energystar.gov or ARI certified as
    ENERGY STAR
  • Solid Fuel Indoor Furnaces (Wood, Coal etc.)
    78 AFUE
  • Air Sealing (Whole House) and Insulation to
    Program Standards
  • ENERGY STAR Windows and DoorsMust have a NFRC
    label with U-Factor lt .35
  • Certain Non-Solar Alternative Energy Heating and
    Cooling
  • Recommendations of a Certified (BPI/RESNET)
    Energy Audit with sufficient predicted energy
    savings
  • Entire job can be financed if at least 75 of the
    work is for eligible improvements. Improvements
    not qualifying for Keystone HELP may be eligible
    for other financing programs at different rates
    and terms.

18
What Improvements Are Eligible?
19
Who Can Perform the Work?
  • Three Levels of Contractors
  • Approved -
  • Trained
  • Certified
  • One Level of Auditor
  • Certified

20
Who Can Perform the Work?
Approved Contractors have been reviewed for
financial and ethical stability and are currently
authorized to perform work under all rebate and
loan programs except the Whole House Improvement
Loan programs.  Trained Contractors are Approved
Contractors who have undergone additional
training on building science and Whole House
energy improvements, and are currently authorized
to perform work under all rebate and loan
programs. If they are performing work under the
Whole House Improvement Loan program, they must
be working under a Certified Auditor who provides
on-site oversight of their work.  Certified
Contractors are Approved Contractors who have
achieved BPI (Building Performance Institute)
certification or accreditation. BPI is the
nationally recognized designation for building
and energy professionals who have undergone
rigorous training on Whole House energy
improvements. Certified Contractors are
authorized to perform work under all rebate and
loan programs.
21
Who Can Perform the Work?
Certified Auditors Certified Auditors are
Approved Contractors certified by both BPI
(Building Performance Institute) and RESNET
(Residential Energy Services Network) to conduct
home energy audits and must have a HERS rater
number, be operating under a HERS provider, or
be an approved audit provider under the PA Home
Energy Home Performance with ENERGY STAR program.
Certified Auditors may work independently from
the contractor or they may be Certified
Contractors who have also met the qualifications
to perform as Certified Auditors.
22
How Does a Consumer Get a Loan or Rebate?
  • Apply online, by phone, by fax or complete the
    application and give it to your Approved
    Contractor for submission.  
  • Well have a quick decision on your loan or
    rebate application and are happy to answer any of
    your questions. 
  • Get an estimate for qualifying improvements from
    your Approved Contractor and sign the Keystone
    HELP Specification Sheet that details the
    qualifying improvements.  
  • For an Unsecured Loan, sign the Keystone HELP
    Retail Installment Agreement, utility bill
    release form, and auto-payment authorization
    provided to you. 
  • For a Secured Loan, we will send you disclosure
    information and a closing agent will come to you
    at a mutually convenient time and location to
    close your loan. 
  • When the work is done to your satisfaction, sign
    the Completion Certificate your Contractor will
    provide you.  
  • Well call you to confirm and pay the contractor
    upon your authorization if you obtained a loan or
    send you your rebate check.

23
What about a Whole House (Certified Energy Audit)
Loan?
  • Same loan process as shown plus these additional
    steps 
  • Obtain your energy audit from a Certified Auditor
    and select improvements from those recommended.
    (To be eligible for this program your energy
    audit must recommend improvements that predict a
    minimum 25 reduction for an initial HERS index
    greater than 100 or a minimum 15 reduction for
    an initial HERS index of 100 or lower.)
  • Get an estimate for selected qualifying
    improvements from a Certified Contractor or a
    Trained Contractor working under the supervision
    of a Certified Auditor and sign the Keystone HELP
    Specification Sheet that details the qualifying
    improvements.
  • The Certified Auditor will conduct a
    post-construction audit
  • Sign the Completiond Certification. Well call
    you to confirm and pay the contractor upon your
    authorization and send you a check for 325
    toward the cost of the audit.
  •  

24
Whats New for the Consumer?
  • At time of Application Consumer agrees to
  • Provide data on your energy usage for completion
    of the ENERGY STAR Home Energy Yardstick or
    equivalent
  • Grant access to your utility and fuel consumption
    data to the Department of Environmental
    Protection or its designees for 12 months from
    the date of your rebate or loan (not applicable
    for Renovate and Repair ENERGY STAR Loan) and
  • Complete a follow up survey in approximately 12
    months from the date of your loan or rebate.

25
Whats New for the Contractor?
  • Assisting consumer is getting energy usage for
    completion of the ENERGY STAR Home Energy
    Yardstick or equivalent can help improve your
    perception as an energy efficiency professional
    and expedite the loan or rebate
  • You must submit the specification form with your
    contract outlining the qualifying improvments and
    subscribe to the installation standards
  • If you are not BPI certified you must attend one
    of the one day Home Performance 101 courses
    being held around the state to achieve Trained
    Contractor status and be eligible to participate
    in the program in the future
  • Exposure to Home Performance may change your
    whole way of doing business!

26
(No Transcript)
27
keystonehelp.com
28
Marketing Materials New Web Portal Coming Soon
29
(888) 232-3477 (888 - AFC FIRST)
keystonehelp.com
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