1. Federal Energy-Efficient Financing Programs

The Federal Housing Administration (FHA) PowerSaver Loan allows homeowners to borrow up to $25,000 at low-interest rates to install energy-efficient HVAC systems, including heat pumps.

2. Energy Efficient Mortgage (EEM)

The Energy Efficient Mortgage (EEM) program, backed by FHA, VA, and Fannie Mae, enables homeowners to finance the cost of heat pump installations by adding the cost to their mortgage.

3. State and Local Loan Programs

Many states and municipalities offer low-interest or zero-interest loans for energy-efficient home upgrades. Examples include:

  • California GoGreen Financing: Special energy loan programs for homeowners and small businesses.
  • New York On-Bill Recovery Loan: Offers fixed low-interest rates with repayments included in utility bills.
  • Mass Save HEAT Loan: Provides 0% interest loans for up to $25,000 for qualifying HVAC systems.
4. Utility Financing Programs

Some utility companies offer on-bill financing, allowing customers to install heat pumps and pay over time as part of their monthly energy bill.

5. Property Assessed Clean Energy (PACE) Financing

PACE financing enables homeowners and businesses to finance heat pump installations with no upfront cost, repaying the loan through their property tax bill over a long-term period.

6. Private Lender and Credit Options

Many banks, credit unions, and online lenders provide personal loans or home improvement loans for HVAC system upgrades. Some financing options include:

  • GreenSky Financing: Offers deferred interest or fixed-rate financing for HVAC projects.
  • Wells Fargo Home Improvement Loan: Provides flexible repayment options.
  • Credit Cards with 0% APR Introductory Offers: Can be used for short-term financing.
7. Manufacturer and Installer Financing

Many heat pump manufacturers and HVAC contractors offer promotional financing, including 0% interest for a set period or low monthly payment plans.

8. How to Apply for Financing
  • Compare loan terms, interest rates, and repayment periods from different lenders.
  • Check eligibility criteria for federal, state, and utility-backed financing programs.
  • Work with an approved HVAC contractor to estimate installation costs.
  • Apply for rebates and tax credits to reduce the total loan amount.
Conclusion

With multiple financing options available, homeowners and businesses can install energy-efficient indoor heat pumps without significant upfront costs. Whether through government programs, private lenders, or manufacturer-backed financing, there are solutions to fit various budgets and needs.