Energy Savings Mortgage Incentive for New Homes

August 24, 2016


A tiered incentive is available for individuals purchasing a highly-efficient new home. In June 2013, the program was opened up to any lender working with a borrower buying a residential unit in Colorado (see H.B. 13-1105). The home’s actual energy performance must be certified by an independent Home Energy Rater who is responsible for conducting onsite testing and inspections of installed measures such as insulation, high performance windows, building envelope, duct systems, and efficient heating and cooling equipment.

The amount of the incentive depends on the energy efficiency of the new home, measured on the Home Energy Rating System (HERS) Index, and must include a non-state source match. (Homes with lower HERS Index Ratings are more energy efficient than homes with higher HERS Index Ratings; a standard new home has a HERS Index Rating of 100.) Available incentives include:

  • $2,000 (Non-State contribution $500) for a HERS Index Rating of 50-40,
  • $3,000 (Non-State contribution $1,000) for a HERS Index Rating of 39-25,
  • $4,000 (Non-State contribution $1,000) for a HERS Index Rating of 24-11, and
  • $8,000 (Non-State contribution $2,000) for a HERS Index Rating of 10 or below.

A home that receives a Passive House certification is given a bonus of a 10-point HERS Index Rating reduction for purposes of calculating the incentive amount.

The incentive should be reserved with the Colorado Energy Office before closing on a new house. For more information, visit the Colorado Energy Office’s Mortgage Incentives for Homes website

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Colorado
Incentive Type: Loan Program
Web Site:
Administrator: Colorado Energy Office
Start Date: 05/28/2013
Eligible Renewable/Other Technologies:
  • Comprehensive Measures/Whole Building
Maximum Loan: $8,000/home


Name: C.R.S. 24-38.5-102.7
Date Enacted: 05/28/2013
Effective Date: 05/28/2013



This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.