Study: Energy-Efficiency Loans Have Low Default Rates
Energy-efficiency loan financing is proving to be a stable, low-risk investment with low default rates and large-scale potential, according to a study released by the American Council for an Energy-Efficient Economy (ACEEE), “What Have We Learned From Energy Efficiency Financing Programs?” A review of 24 energy-efficiency loan programs finds extremely low default rates ranging from 0-3 percent throughout the life of the financing program. Default rates for efficiency loan programs have also remained largely unchanged, even during the near collapse of the real estate market over the past few years.
“Energy-efficiency loans are proving to be a winning investment in a time of economic uncertainty. Based on these findings, now is the time to scale-up to serve many more homeowners and businesses,” said Steven Nadel, ACEEE executive director.