Start with an energy audit
Before you buy new equipment, find out where your home loses energy. A home energy audit checks insulation, air leaks, ducts and equipment. Some utilities offer audits at low or no cost. The results help you put money where it saves the most, which is often sealing and insulating before replacing big systems.
Common upgrades
- Attic and wall insulation and air sealing
- Heat pumps for heating and cooling
- Heat pump or high-efficiency water heaters
- Energy-efficient windows and doors
- Solar panels, with or without battery storage
- Smart thermostats and duct sealing
Check incentives, carefully
Federal tax credits, state programs and utility rebates for energy upgrades change often, and some federal credits have ended. Before you count on a credit or rebate in your budget, confirm the current rules with your utility, your state energy office and a tax professional. Rules vary by state.
Weigh savings against the payment
Estimate how much each upgrade could cut your monthly bills and compare that with the loan payment. Some upgrades pay for themselves over time. Others are mostly about comfort or replacing aging equipment. Both can be good reasons, as long as the payment fits your budget.
Budget for the whole job
- Get two or three bids for the same scope
- Add 10% to 20% for surprises, like wiring or roof work for solar
- Include permits and inspections
- Ask about warranties on equipment and labor
How to borrow
A home equity loan gives you a lump sum at a fixed rate and leaves your first mortgage alone. If your current mortgage rate is close to today's rates, a cash-out refinance may be worth comparing.
CapCenter offers fixed-rate home equity loans from $50,000 to $250,000, with 15, 20 or 30-year terms, on single-family primary residences and second homes, with ZERO Closing Costs (restrictions apply). A whole-home package, such as insulation, a heat pump and solar, is more likely to reach our minimum than a single upgrade.
A note on solar financing
If you lease solar panels or finance them through the installer, that agreement may be recorded against your home. It can affect a future refinance, home equity loan or sale. Read the terms and ask your loan consultant before you sign.
