California Specific - Financing for Energy Upgrades

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Just thought I would let everyone know of this home energy efficiency improvement financing resource available for most areas in California. I am not a representative of this financing program, but do act as a general contractor within the program. Many of my clients have found this financing useful when completing a large remodel or room addition. This post is not meant to be an advertisement,  but instead a resource in case you need help financing home energy upgrades on your next rehab project.  

Residential Energy Efficiency Loan (REEL) program benefits (see image below for more details):

  • Unsecured financing 
    • APR 4.5% - 9.95%
  • Finance 100% of the project costs
  • Loans up to $50,000
  • up to 15 year term 
  • 0$ closing costs
  • Quick loan approval, typically less than 24 hours
  • 70% of the amount borrowed must be used for energy efficiency improvements such as HVAC, water heating, cool roofs, insulation, duct sealing, air sealing, lighting, appliances, pool pumps, windows, and more
  • 30% of the amount borrowed can be used for non-energy related improvements such as cabinets, flooring, and other finishes.
  • This program can also be combined with local utility rebate programs and federal tax incentives

Property Eligibility Requirements:

  • Single family residential property
  • Upgrade 1- 4 units
  • Must receive gas or electric service from one of these utilities (SocalGas, Socal Edison, PG&E, SDGE)
  • Mobile homes need to be anchored to permanent foundation

Borrower Requirements:

  • 580 - 600 minimum credit score (depends on lender)
  • Debt to income ratio less than 55%

Project Eligibility Requirements

  • Work has to be completed by a participating REEL contractor
  • A combustion safety test by a contractor who is certified by BPI or NGAT must be completed upon project completion (typically this is the contractor doing the work)
  • Work must meet building code requirements.

you can find more information here: https://www.thecheef.com/reel

I hope you found this post useful.

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