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Strategy Toolkit

Strategy EI2.4: Improve residential energy efficiency through low-cost financing options and grants.

Strategy Description

Successful energy-efficiency financing tools rely on a concept known as “life-cycle costing.” Traditional financing methods consider only the up-front costs of new development, such as building design and construction, without factoring in the reduced energy consumption and projected savings associated with high-efficiency buildings. In contrast, a life-cycle costing approach takes a longer-term view, accounting for prospective operating and maintenance costs over the life of the building in addition to the initial costs of the upgrades. Financing options, including energy-efficient mortgages and programs for special assessment and interest rate buy-down, offer lower borrowing costs for energy-efficient improvements.

Additional Information / Case Studies


EI2: Improve residential, commercial, and industrial sector energy performance through the promotion of sustainable design, energy efficiency, conservation, and advanced energy analytics.