Nebraska Energy Office

DOLLAR and ENERGY SAVING LOANS

Nebraska Dollar and Energy Saving Loans are offered statewide by the Nebraska Energy Office and the state's lending institutions. The simple interest rates are 5%, 3.5%, or less*. [ *final annual percentage rate (APR) may vary by lender and loan fees charged ]

Many <common home, building or system energy improvements qualify for financing.

<Prequalified projects for home and building improvements are generally cost-effective and can be financed with a low-interest loan for up to 15 years, or for 5 years for appliances. The term for other prequalified projects ranges from 3 to 10 years, depending on the loan category. Minimum monthly payments apply: $25 for appliances and electronics; $50 for all others.

Getting a Loan for Prequalified Projects

The first thing you will need are the loan application forms for the improvements you wish to make. Specific energy efficiency requirements are listed on the forms for each type of project.

If you are an individual or in the case of a business, a sole proprietor, you must complete and submit a United States Citizenship Attestation (Form A) in order to comply with Nebraska Legislative Bill 403 signed into law on April 8, 2009.

When you are ready to apply for loan, you may get loan application forms from your lender, the Nebraska Energy Office, or print a copy of the form from the list below. Just click on the form or forms you need and print them on your printer. Form B must be included with your loan application when submitting project application Forms 1, 2, 3, 4, 7, 8, 9, 20 and 30.

Get Price Quotes/Bids

Obtain price quotes or bids from contractors, dealers or installers for the desired projects, but do not proceed with any work or contractually obligate yourself to proceed. (If you do, you lose your eligibility to finance the project through the Energy Office. You may get a bid or quote, contingent on Energy Office approval of your project.)

Only one bid or quote is required by the Energy Office.

However, it is prudent to compare several bids or quotes and some lenders may require more than one. If there is a minimum performance requirement for a particular project, such as a heating or cooling unit, make sure the bidder is aware of the requirement and ask the bidder to mark the performance factor on the bid form.

If more than one project is included on a bid form, or if there is additional work which does not qualify for low-interest financing, costs of each qualifying project must be itemized.

Complete all the information requested on each form and attach the price quotes or bids that you intend to accept. You may install projects yourself, but may not include the value of your labor in the project cost. If the project will result in a rebate, the amount of that rebate must be deducted from the project cost.

Go To Your Lender

Energy loans are available statewide.

Take the completed forms to an eligible lender — a Nebraska bank, savings institution or credit union of your choice. Most financial institutions in Nebraska offer Dollar and Energy Saving Loans.

You must provide the information required by the lender to complete your loan application and determine that you meet the institution’s credit requirements. Lenders are encouraged to make these loans for the maximum term. If your lender does not, or if you are not satisfied with fees or other details of the loan, you may want to contact another participating lender.

The lender will approve your loan application subject to the Energy Office’s commitment of funds. After the Energy Office reviews your project and reserves funds for your loan, your lender will notify you to proceed with your project.

Do not begin any part of the project until your lender notifies you of the Energy Office’s commitment.

Your lender will notify you when to proceed with the work. All qualifying work should be completed within five months after the Energy Office’s commitment of funds. When completed, notify the lender to finalize any remaining details.

Start repaying your loan while you enjoy the lower energy bills and operating costs provided by the improvements you have made.

Typical Improvements You Can Finance

• Refrigerator, Freezer, Dishwasher, Dehumidifier or Clothes Washer Replacements
• Certain Commercial Appliance Replacements
• Room Air Conditioner and Room Heat Pump
• Insulation added to walls, floors, ceilings, attics and other building envelope surfaces
• Windows, Glass Doors and Exterior Doors
• Storm Windows and Doors
• Skylight Replacements
• Broken Windows
• Windows and Doors to be replaced with solid walls
• Reflective Window Film
• Building Air Leaks to be sealed with caulk and weather-stripping or thresholds
• High Efficiency Space Heating Equipment
• Forced air gas furnace
• Steam or hot water boiler
• Combination water and space heater
• Radiant heating
• High Efficiency Space Cooling Equipment
• Central air conditioner
• Air source heat pump
• Ground water or ground coupled heat pump
• Packaged terminal heat pump or air conditioner
• Programmable Thermostats and other controls
• High Efficiency Water Heating Equipment
• Duct, Pipe and Water Heater Insulation
• Whole House Fans, Heat or Energy Recovery Ventilator and Outdoor Combustion Air Intake Duct
• Fireplace Inserts
• High Efficiency Lighting and Controls
• Renewable Wind, Solar and Fuel Cell Projects
• Dedicated alternative Fuel Vehicles and Fueling Facilities
• Telecommunications Equipment such as network access equipment, video and audio conferencing products and other equipment which save energy by reducing the need for physical transportation
• ENERGY STAR^® Certified Home Electronics and Office Equipment
• Other Energy Efficiency and Waste Minimization projects can be financed in some situations. Contact the Energy Office for details.

Getting a Loan for Other Improvements, Equipment or Technical Analyses

If you want to make an improvement or purchase equipment that is not listed on forms 1-4, 7-9 or 20 as a prequalified project you may be able to qualify for financing by demonstrating that the project will pay for itself within:

• 15 years for building improvements,
• 5 years for replacement appliances or home electronics and office equipment or
• 10 years for all others

Do-It-Yourself Analysis and More

Steps to Obtain a Low Interest Loan Using an Energy Saving Improvement Analysis, Form 32 and Form 33 provide a simple energy saving analysis which you can complete yourself.

Form 36 provides the format for doing the same on waste minimization projects.

Additional Considerations

1. Free or low-cost energy audits may also be available from your local electric or natural gas utility. If these are unavailable or not appropriate, you may seek assistance from a professional engineer, architect or other licensed or certified technician.
2. When a third party prepares the technical analysis, that person must complete and sign an Analyst No Interest Statement, and the borrower must complete the Utility Records Release, both on Form 34.
3. Submit the completed analysis of the energy saving improvement(s) or waste minimization project(s), with all supporting documentation, to the Energy Office.
4. The Office will review it to make sure that savings estimates are reasonable or the waste minimization project qualifies, and will return a Technical Analysis Acceptance, Form 6, to the participating lender you designate.
5. This form lists those improvements or projects identified in the analysis which qualify for a Dollar and Energy Saving Loan.
6. Meet with your lender when Form 6 is received and proceed with financing the qualifying improvement(s) or project(s).
7. The cost of an analysis prepared by a third party may be added to a Dollar and Energy Saving Loan as a part of the cost of the project.

Technical Analysis Loans

A technical analysis of energy saving improvements or waste minimization projects may be financed with a Dollar and Energy Saving Loan provided it will be done, as appropriate, by a Professional Engineer or Architect, Certified Energy Manager, Certified Lighting Efficiency Professional or Home Energy Rater.

Use Form 30 and Form 31 to apply for a technical analysis loan through a participating Nebraska lender.

Energy Efficient Housing Loans

Nebraska Energy Efficient Housing Application

Use Form M10 and the Energy Efficient Housing Application Guidelines to apply for new home construction financing for pre-sold homes. This application requires the services of a RESNET certified Home Energy Rating System (HERS) rater.

The home owner must receive the Energy Office's written approval of their application prior to applying for a building permit, if required, and any construction or ground breaking.

3.5% Nebraska Energy Office Construction Loan

The Nebraska Energy Office is offering 3.5% Dollar and Energy Saving Loans through eligible Nebraska lenders for the construction of single family, detached dwellings located in Nebraska which will be built as ENERGY STAR^®, Five Star Plus homes with a qualifying Home Energy Rating System (HERS) score.

You must supply the Energy Office with a set of the construction drawings and specifications showing inclusion of all required products, dimensions, R-values, efficiencies, mechanical design, etc., along with the Home Energy Rating System reports, from plans, which show the home meets the requirements for an Energy Efficient Housing Loan and shows the program inputs used by the HERS rater and Heating, Ventilation, and Air Conditioning sizing (a copy of the Building File Report and Equipment Sizing Summary).

Then the information will be reviewed for compliance with the requirements of the program and you will be notified that either (a) the plan complies and you may apply for a loan from an eligible Nebraska lender, or (b) the plan is deficient in specific areas and you have the opportunity to revise and resubmit the information.

If your plan complies with program requirements, the Energy Office must be notified by your Nebraska lender that your application for a construction loan has been approved by their institution and receive your loan application paperwork from the lender. Once a Commitment Agreement between your lender and the Energy Office has been signed, the lender will notify you that you may begin construction.

You may not begin construction prior to receiving notification from your lender that the Energy Office has committed funds to your project.

During and after construction the HERS rater will need to inspect the home to insure construction is completed according to the plans and ENERGY STAR^®, Five Star Plus requirements with a qualifying HERS Rating score, and provide the Energy Office with the associated completed checklists and final HERS rating.

The construction loan must be secured by a 1st mortgage on the home being constructed; have a permanent loan take-out commitment in place; not be written for more than 1 year; carry an interest rate of no more than 3.5%; and be covered in full by property insurance. Any loan fees charged by the lender will be only for costs associated with the loan paid to a non-affiliated third party or, if in-house fees, not exceed the lender's published fees for like extensions of credit.

The construction loan can include the costs of the lot, Home Energy Rating, design and plans, material and equipment to be installed in the house, building permits, utility installation or connection, general contractor, subcontractors and wages paid to employees, as well as loan fees charged by the lender. The costs of services by the borrower and the borrower's family or friends who are not actual employees or contractors engaged in the construction business are not eligible.

Lender may loan 100% of the total cost of the project up to the appraised value of the home as completed or $453,100.00, whichever is less, provided the lender determines the borrower has sufficient resources, or can provide additional collateral, to cover any amount over and above the permanent loan take-out commitment.

Conventional Construction Loan or Self Financing

To qualify as an ENERGY STAR^®, Five Star Plus new home with a qualifying HERS Rating score under the Nebraska Energy Efficient Housing Program, application must be made to the Energy Office and the Energy Office's approval of the plan received in writing prior to applying for a building permit, if required, and any construction or ground breaking.

Long Term Permanent Financing

Reduced fixed interest rate permanent loans for up to 30 years are available through Tecumseh Federal Bank, Tecumseh, Nebraska, for single family, detached dwellings located in Nebraska which are built as ENERGY STAR^®, Five Star Plus homes with a qualifying HERS Rating score and received the Energy Office's written approval of the plan prior to the start of construction.

Other eligible Nebraska lenders have the option to offer reduced fixed interest rate long term loans. Check with your local lender for availability.

The Energy Office must be provided with the associated completed checklists and final HERS Rating from the HERS Rater and determine the dwelling was completed in accordance with the approved plan and still complies with the requirements of the program.

Emergencies

Prequalified and other improvement, equipment or technical analyses projects may not be started prior to Energy Office commitment of funds to your lender except in two emergency situations:

• When a heating system fails or is red-tagged during the months of September through May, or
• When a cooling system fails during the months of April through October and immediate replacement is essential for verifiable medical reasons.

In either case, the lender must obtain Energy Office approval for immediate installation of qualifying equipment. Then the improvement may be financed with a conventional loan until the Energy Office commits funds to refinance the balance with an energy loan.

Equipment installed in an emergency must still meet minimum performance requirements and the borrower must still meet the lender’s credit requirements.

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