A logo of the CCEF RENU loan program and the words How to Apply

There is a wave of new energy efficient technology hitting the markets these days, and heat pumps are no exception.

And no matter if it’s insulation, solar, home batteries, EV chargers, or other equipment, it can all add up to thousands, if not tens of thousands of dollars.

Not everyone (understandably) has this kind of money laying around. And this is where financing becomes a critical necessity if we are to continue this environmental and home electrification movement forward.

One of the best financing programs out there for Colorado home and property owners is the Colorado Clean Energy Fund, also called RENU.

In this article, I’ll go over quickly what the program is, the great benefits of the program, how to apply, and more.

The CCEF RENU loan program is also hands down our favorite way to help homeowners finance their heat pump install projects with us, and we highly recommend the program as well.

Let’s get into it!

What Is The CCEF RENU Loan Program?

Also known as Colorado’s Green Bank, the Colorado Clean Energy Fund is a $30 million dollar program provided by the State of Colorado to help home and property owners install new energy efficient or renewable energy equipment, and to move Colorado home electrification and environmental goals forward.

CCEF partners with local credit unions to provide these loans at lower-than-normal interest rates, very low loan processing up front fees, longer loan periods, no repayment penalties, and many more benefits versus typical contracting or equipment financing.

At the time of this writing, there are three main local credit unions CCEF RENU loans work through. These are:

Both residential and commercial energy efficient and renewable energy projects can be financed through the program.

For solar energy you can get up to a 20 year loan, and for all other equipment (including heat pumps), you can get up to 15 year loan term, which is actually fantastic.

This is because average heat pumps have an average lifespan of 15-20 years anyway, so you can stretch out this loan to more or less match the lifetime of the equipment.

A list of RENU loan terms

What Type of Loan Is It?

The RENU loan itself is technically a personal loan. You get approved by submitting income verification, running a credit check, looking at credit history, and a few more typical basics of personal loans.

Here are some additional details after just attending their approved contractors webinar for the program as well:

  • Max loan amout: $75,000 with possible approvals up to $85,000
  • Terms: 20 years for solar and solar batteries, and up to 15 years for everything else (heat pumps included)
  • No prepayment penalty
  • No lien on property – UCC-1 fixture filing. This is great for homeowners from a risk point of view.
  • 2-3 business day credit approval

What Types of Equipment Can I Finance?

The loan program allows for heat pumps, efficient water heaters, insulation, air sealing, windows and doors, solar, solar batteries, EV chargers, and induction stoves.

Just about everything listed above needs to be on the Energy Star list, if that category or equipment list type exists.

You can finance up to 30% of the project costs for related indoor air quality measures, and the loan supports other measures that might be needed to accompany some of the equipment installs above.

These could include things like electrical panel or structural upgrades.

If doing solar, you may not include the price of a new roof into the loan. You’d have to get that financing elsewhere.

A list of eligible energy efficiency and renewable energy projects accepted by CCEF for the loan program

Who Qualifies For A RENU Loan?

CCEF has a few eligibility requirements, but overall they are quite homeowner-friendly.

You’ll need at least a 580 credit score, and there are certain debt-to-income requirements that they look at.

The great news is that your property can be a primary residence, second home, or even an investment property (for real estate investors looking to upgrade).

For new home builds, you must have a certificate of occupancy for the property in order to qualify.

A list of steps to apply for the RENU loan

How Do I Apply For The RENU Loan?

You will have to apply through a registered and approved contractor. These contractors have been vetted and have had to meet stringent standards in order to be able to offer these loans.

We know because we went through the process ourselves, and we’re approved to offer RENU loans for heat pumps.

Their approval process is in place to protect homeowners, and to make sure that the equipment is being installed properly, and that it’s done by professionals.

You can find an approved contractor on their interactive map here, or search the full list here.

Once the contractor provides you with a proposal or project that everyone agrees on, they will send you a link to apply for the loan as the home or property owner.

You’ll fill out and provide a number of things as mentioned above, but it should only take 2-3 days or so to hear back from your credit union of choice for approval.

Once approved, the credit union can issue some pre-funds (to help cover up front project costs), and then once the project is completed, the bank will send out the rest.

That’s pretty much it! There are some other details and things, but that’s generally how the program works.

Wrapping Up

If you have more questions about the CCEF RENU loan itself, how it works, or if you’re interested in financing for heat pumps or anything else, feel free to contact us here.

In the end it’s an incredible program with great people facilitating it, and (in our opinion), the absolute best way to finance any of your energy efficiency or renewable energy projects in Colorado.

Cheers!

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