Energy Savings Mortgage Incentive for New Homes

Summary

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.