Alaska Energy Rebates and Loan Programs

If you live in Alaska, it is no surprise to you that Alaskans have some of the highest home energy bills in the nation. The high costs are the result of fuel shipping costs and the large amount of energy needed to heat our homes during dark winters with subzero temperatures. With nationwide interest in energy use, several government programs have been created to provide financial incentive for increasing energy conservation. Of course, these improvements lead to cost reduction in energy bills for you. Available programs include rebates and loans offered through the Alaska Housing Finance Corporation (AHFC). Read on to see which programs could benefit you, then click on the links provided for more information.

Energy Efficiency Interest Rate Reduction Program

Who can apply: Homebuyers purchasing a 5star or 5star plus home, or a home with improvements to its energy rating.

Website: AHFC Interest Rate Reduction Program

With this program, homebuyers get an interest rate reduction for buying energy efficient homes. The rate reductions range from 0.125% to 0.750%. If a home was built after April 1, 2007, the home must meet The Alaska Building Energy Efficiency Standard. Homes built before 2007 must be rated for 5star or 5star plus to qualify for the full reduction.

If a buyer wants to make energy improvements for the home, they must let their lender know what improvements, and how many steps will be completed towards energy efficiency. The buyer may then get a pro-rated reduction based on the number of steps. After the loan closes, buyer has one year to complete the improvements.

Home Energy Rebate Program

Who Can Apply: Homeowners improving the energy efficiency of their homes.

Website: AHFC Weatherization rebates

After the homeowner gets an energy rating and a list of recommended improvements from a certified energy rater, you can begin making the improvements to your home. The program requires you to complete the improvements in 18 months. Once completed, you get a post-improvement inspection. Over 3, 339 Alaskans have completed this program so far, and more funding is available.

The inspections need to be performed by a certified energy rater – a list of available energy raters is available at the website above.

Since this is a rebate program, the initial inspection costs and only part of the costs for improvements will be covered by the rebate. The reduced energy bill you receive after improvements will more than likely be worth the costs to you.

The Second Mortgage Program for Energy Conservation

Who Can Apply: Homeowners who are seeking to improve their owner-occupied home.

Website: AHFC Second Mortgage

Are you seeking to make improvements to your owner -occupied home, and need to know what program can loan you the money? This is a loan program for up to $30.000 for 15 year term for energy improvements to a home that the owner lives in. You select from a list of upgrades provided by a Certified energy inspector. You can find a certified energy inspector through the link above. The improvements must be completed within one year of the loan closing. The interest on the loans changes, so see the website link above for current interest rate.

The Small Building Material Loan

Who Can Apply: homeowners of residences in small communities

Website: AHFC Small Building Material Loan

If you live in what Alaskans would call a small community, and would like to improve the livability, energy efficiency, or simply expand the living space of your home, this loan for building materials to complete or renovate your home could be the ticket. To see if your community meets the AHFC definition of small community, check the AHFC glossary.

This loan will help cover the costs of building materials, freight, or hired labor. Improvements are to be completed within 6 months of the loan closing.

Residential Energy Efficient Appliance Rebate Program

Who Can Apply: Renters and Homeowners with disabilities.

Website: AHFC Appliance Rebates

Rebates are available for replacing certain household appliances with Energy Star standard appliances in homes where people with disabilities reside. Rebate amounts range from $150 to $500, depending on the appliance, and if the resident is living in an urban or rural community. Appliances that are eligible for the rebate are refrigerators, dishwashers, clothing washers, and clothing dryers.

This rebate program is available to people who rent their home. If you are a renter and your landlord supplies the appliance to be replaced, you ask for the application and work the details out with your landlord.

These programs can help you make your home to be more energy efficient, and reduce your monthly energy bills. Combined with good energy use habits, even Alaskans can increase their energy conservation and lower their energy bills.

Sources: US Dept. of Energy http://dsireusa.org/
Sustainable North http://sustainable.cchrc-research.org
Alaska Housing Finance Corporation http://www.ahfc.state.ak.us