Most people are motivated to go green either through their desire to save money or by concern for the environment, but are put off by the high initial costs of materials and installation. In Babylon, N.Y (the name is interesting, isn’t it?), local town supervisors have figured out a way to make going green an affordable choice for residents. These local officials think they can overcome this hurdle by helping residents spread the costs over a decade or more.

From the Wall Street Journal:

Babylon’s program, Long Island Green Homes, launched last October after the city of 220,000 people redefined its solid-waste code to include energy waste, based on its carbon content. That allowed town supervisor Steve Bellone to tap $2 million of Babylon’s more than $25 million solid-waste reserve fund to seed the program.

Now residents can apply for as much as $12,000 in loans to finance home-energy-efficiency improvements like insulation and new furnaces. Homeowners also can use the program to finance rooftop solar panels.

After an energy audit to determine how much a homeowner could save in utility bills, the town pays a local contractor to do the energy improvements. The homeowner then pays the money back to the town through regular trash bills, with 3% interest, and the loan is structured so the homeowner pays less than he or she is saving in utilities.

Were you surprised to read that the program covers things like insulation? Going green doesn’t necessarily mean solar panels and wind farms. One of the first and most important step of green energy is conservation. You don’t need to be a rocket scientist to know that gaps around doors, windows and roofs can be costly when cooling or heating a space. Before I did a little simple weatherstripping around my doors, I used to feel the hot Phoenix summer heat pour in my house.

An extra bonus: conservation is not a 1-1 cost/energy savings. There is a rule in the solar panel industry that for every kilowatt hour (kw) saved, the installation cost is reduced by amount needed to generate 5 kw!

The move towards government financing seems to be growing. Eleven other states, including Texas and Ohio, now have laws on the books that allow local governments to establish financing programs for home-energy improvements. In addition to Babylon, pilot programs have launched in Boulder, Colo., and five California cities. Several other local governments — from Charlottesville, Va., to Albuquerque, N.M. — are moving forward with programs of their own.

Local businesses in states supporting either energy assessments or installation of solar panels and insulation are growing quickly and providing much needed jobs. Does your state have a program to finance green energy improvements? If it doesn’t, the ability to get one may be in your hands. Call or write your local state representative.

Have you participated in this kind of green energy financing? Tell us about it by leaving a comment!

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