Should New York’s New Energy Efficiency Plan Be the Norm Across the United States?

For decades, the most common reason stated by consumers when questioned about why they don’t make energy efficient improvements to their home has been the initial cost. Solar panels, wind generators and even simple things like additional insulation may shave a few dollars off the electric or gas bill, but in these trying economic times, such things seem unnecessary compared with putting food on the table.

New York Governor Andrew Cuomo has put forth an intriguing possibility. Rather than expecting homeowners to pay for energy efficient upgrades to their home through traditional sources such as credit card financing or additional mortgage loans, he proposes that the payments be made through their utility company. With a base 2.99% interest rate for loan terms ranging from 5 to 15 years, as well as the simplicity of making the payment directly through the utility bill, those seeking to upgrade their home’s green factor could potentially save thousands of dollars over the life of their loan.

The program was Governor Cuomo’s signature legislation in the Power New York act of 2011. While it was originally intended to go into effect in June of 2012, the starting date has been moved forward and now applies immediately. Interested New Yorkers should contact their local power company for more information.

Could such a program be a model for other states to follow? In light of the shaky economy, Governor Cuomo states that the program will create jobs, which it will, as professionals will have to be retained to process the applications, guide the program, and ensure that loan funds are used appropriately. The widespread, near-term effect of the widespread adaptation of such legislation might well create tens of thousands of jobs across the United States, as companies tool up for increased output due to greater demand for energy-efficient home upgrades.

While only time will tell if the program will succeed, few ideas put forth in recent years have had more ability to “kill two birds with one stone.” Not only can we expect a significantly more environmentally friendly and inexpensive future, but it couldn’t hurt to get those jobs in place, either.

Sources:
Empire State News “Low cost financing now available for homeowners to make energy efficient upgrades” www.empirestatenews.net


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