Finance the Future
RMI’s Finance the Future project--part of the Residential Energy+ initiative--aims to increase the availability of capital for home energy improvements, and promote transparency of home energy performance in the home purchase process.
In spite of benefits of high performing homes, homeowners have been slow to invest in home energy upgrades. This is largely due to the lack of availability of capital for home energy improvements, and little transparency into home energy performance during the home purchase process. This means mortgage underwriters have not generally considered monthly energy costs or the value of energy improvements, and home appraisals have not reflected the value of energy improvements.
By increasing the availability of innovative financing mechanisms, and incorporating home energy use into underwriting practices especially at the point of sale, the industry can mitigate default risk and collateral risk, improve access to higher-quality building stock, and generate substantial savings for all homeowners of varying income levels.
Finance the Future is focused on making home energy performance a factor in home buying decisions by convening technical experts and practitioners, generating thought leadership, and providing guidance to major market actors in order to:
- Increasing the availability of capital for home energy improvements by scaling innovative financing mechanisms including Property Assessed Clean Energy (PACE)
- Improving equitable access to capital for low income households who--on average--spend 18 percent of their annual income on energy costs and are at greater financial risk when energy costs rise by detailing specific recommendations to the Federal Housing Finance Agency’s Duty to Serve Ruling
- Promoting transparency of home energy performance during the mortgage underwriting process and advising mortgage agencies
Interested in supporting our work? Contact Martha Campbell.