Funding Providers

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There are many avenues for funding energy improvements. 

States have programs offering rebates and incentives, utilities have their own programs, banks have special financing options just for energy improvements and the American Recovery and Reinvestment Act (ARRA) has designated millions of dollars toward energy improvements for residential buildings.  By joining with and supporting the EnergyARM network and processes, administrators in charge of these funds are assured that the transparency, accountability and oversight they require are being systematically addressed.

EnergyARM includes an escrow account process, with the escrow account held by Enterprise Bank, to ensure funds are used as intended.  Work is completed to predefined standards before any funds are released.  The main point of contact in the EnergyARM network is the Energy Improvement Project Manager (Project Manager).  Depending on the funding source, the Project Manager may have to meet prerequisites to become a conduit to direct homeowner applicants to the program.  The process works like this:

1. A Project Manager works with the funding program(s) to ensure the homeowner applicant is qualified for the energy improvement funding offered and ensures any required paperwork is completed.
2. The funding program deposits funds designated for energy improvements into the escrow account.
3. Multiple funding sources may be utilized as well as loans and the homeowner’s own funds.
4. The energy audit and improvement analysis is performed and the approved improvements are made and verified.
5. Funds are released to pay the contractors who performed the work.

The benefits of utilizing the EnergyARM system as a means to disburse energy improvement funds are great:

• EnergyARM projects make use of the EnergyARM network of contractors and nationally certified energy professionals.  Funders can be assured the work performed is being tracked and quality-checked.
• Improvements are paid from the escrow account as the work is completed and approved.  There can be no “double-dipping” by having a program pay or provide reimbursement for an improvement that has already been covered by another program.  Improvements are paid for only once.
• Homeowners are more likely to make use of the available programs due to their visibility and easy accessibility within the comprehensive EnergyARM process.
• Contractors are more likely to make use of the available programs since they know the funds are available to them immediately when they complete the work as agreed.
• Fund Administrators can receive customized reports, including energy and carbon savings, based on the requirements of their program.

Before any payment is transacted, the work is approved through a three tier quality assurance process:

1. Each work order item has a quality check description built in.  The contractor understands the quality requirements of the work before accepting the job and, depending on the work scope, the Project Manager or the Building Analyst perform a quality check and sign-off.
2. The Building Analyst’s work is quality checked by the HERS Rater who is responsible to sign off on the energy improvement recommendations and on the initial and final improved building energy rating reports.
3. The HERS Rater’s work is quality checked by a RESNET Certified QA Designee through the quality assurance process that is part of the national home energy rating certification program.

Since EnergyARM allows only certified HERS raters access to the REM/Rate software, the resulting reports and forms can be used for both Energy Efficient Mortgages and Energy Improvement Mortgages. This nationally recognized approach to energy improvement lending allows the EnergyARM system to function long after the ARRA stimulus funding has run out. By using the time-proven HERS Rater/lending process the lender can be assured that the resulting reports are developed by certified professionals who have to maintain their credentials and insurance levels in order to be allowed access to the software involved in the EnergyARM system.

Once the entire energy improvement project is completed, the Home Energy Rater then ‘archives’ the rating. This means that the data file of the completed rating is stored or ‘archived’ in one or more secure locations.

Archival of energy ratings serves several purposes.

• The mortgage industry must have access to the rating score for financial verification purposes.
• Certain programs use the energy score to determine compliance, i.e.: the EPA ENERGY STAR program, the US Green Building Council’s LEED® for Homes program and including energy mortgages – EEMs & EIMs.
• The amount of energy saved and corresponding pollution reduction is also recorded with the archived HERS rating. This information of record can be very important for compliance with pollution reduction programs, carbon footprint calculations and the possible generation of white tags, green tags and related credits.
• Because home energy ratings are conducted by a certified home energy rater using an industry-approved software program, involve quality assurance checks and require 3rd party inspections, the actual amount of saved energy and pollution reduction is independently verifiable and therefore of a trustworthy nature.
• The real estate industry can use the HERS rating scores during real estate transactions, which, in some circumstances, the HERS rating score must be calculated and given to the purchaser at the time of closing by local or regional mandate.
• The applicable funding program has access to historical data and can view the records in many formats depending on what the funding program administrator requires.
• Government entities can access the stored ratings for reporting and statistical purposes.

Ready to get started?  All you need do to offer your funding program through the Retrofit Exchange is click on the following logo and then the “Sign Up Now” button: