The 2026 Guide to Housing Repair Grants for Energy Efficiency

What Are Housing Repair Grants for Energy Efficiency?

Housing repair grants, including those for energy efficiency, provide funds to eligible homeowners to upgrade their properties, make improvements, and reduce energy costs. Here are some of the options available.

1. Weatherization Assistance Program (WAP)

According to the official website Energy.gov, Weatherization Assistance Program (WAP) from the U.S. Department of Energy (DOE) supports low-income households by increasing their energy efficiency.

Additionally, it supports 8,500 jobs that provide weatherization to about 32,000 homes, ultimately saving homeowners an average of $372 or more each year. Some potential measures include insulation and energy-efficient windows and air conditioners.

2. Section 504 Home Repair Program

Another option is the Section 504 Home Repair program from the U.S. Department of Agriculture (USDA), Rural Development. The program provides housing repair loans to very-low-income homeowners in rural areas to modernize their homes, which could include energy-efficient updates. Housing repair grants are available to homeowners 62 and up but must be used to remove safety and health hazards.

3. The Department of Housing and Urban Development (HUD) Programs

The Department of Housing and Urban Development (HUD) also offers assistance programs as well as loans for both home repairs and improvements, like energy efficiency. But eligibility depends on age, location, and property. As part of this program, the housing repair grants are available to Native Americans and veterans with disabilities. However, those grants may have certain restrictions.

4. State and Local Governments

State and local governments also offer housing repair grants and loans. For example, there are Homeowner Repair Grants and Loans in New York City that provide assistance for energy-efficient upgrades. Separately, programs like the Energy Cost Savings Program (ECSP) help eligible New York City-based businesses reduce their energy costs, which can complement grant-funded improvement efforts.

The Comfort Home Program from the New York State Energy Research and Development Authority (NYSERDA) provides incentives to homeowners in the state to get energy-efficient upgrades by working with a qualified contractor (here's how to become one). Upgrades can include insulation, high-performance windows, sealing air leaks, and more.

Housing repair grants for small businesses may be available on the federal, state, and local levels. However, eligibility can be limited as you must meet very specific requirements.

How Housing Repair Grants Can Indirectly Help Home Repair Businesses

While these housing repair grants are geared toward homeowners, they help businesses in a few important ways by:

• Driving up demand for home repairs and renovations: Homeowners who receive housing repair grants for energy-efficient upgrades boost demand for your services. This can lead to more work for home renovation companies or home repair businesses, ultimately increasing revenue.

• Helping provide funds to licensed contractors and partners: Housing repair grants may be awarded to homeowners, but business owners are paid to do the work. Licensed contractors and companies connected to specific government agencies and nonprofit organizations stand to benefit from these repair assistance programs.

• Reducing financial barriers, making it easier to start energy-efficient projects: Making home repairs and improvements for energy efficiency can be a substantial investment. Housing repair grants from the federal, state, or local government can lower the upfront cost and speed up the sales cycle. As a result, businesses may see an increase in clients and get higher-value projects.

Funding for Home Repair Businesses

Since housing repair grants are generally granted to homeowners, you might wonder what funding options are available directly to home repair businesses or similar service providers. Some options include:

1. Term Loans

For larger-scale projects or energy-efficiency upgrades on a commercial property, term loans are a solid option providing upfront funding. As a financing solution, term loans can be appealing as they typically come with fixed interest rates and repayment terms. So, business owners can access the funding they need and budget for the monthly payments.

2. SBA Loans

The Small Business Administration has three main loan programs that may help home repair businesses cover the cost of energy-efficient upgrades. These include:

• SBA 7(a) loans: With financing up to $5 million, eligible business owners can use SBA 7(a) loans to improve real estate (such as energy-efficient upgrades), for equipment, machinery, and working capital.

• SBA 504 loans: These loans are for major fixed assets and funds can go toward existing buildings, land, and long-term machinery and equipment. Similar to SBA 7(a) loans, the maximum loan limit is $5.5 million.

• Microloans: If you need a smaller loan to get started, microloans provide up to $50,000 for equipment, machinery, working capital, supplies and fixtures.

Borrowers should be aware that the application process can be lengthy, with funding taking more time as well. That's the primary drawback, but the main benefit is that SBA loans are backed by the government agency, therefore reducing lenders' risk.

3. Business Lines of Credit

Depending on your business needs, you may need a financing solution that's more nuanced. A business line of credit is an alternative to a traditional loan. Instead of receiving a lump sum, borrowers are approved for a credit limit from which they can tap funds on an ongoing basis.

It provides maximum flexibility as borrowers only pay interest on what they actually use. Plus, once you pay down the balance, the credit limit resets like you might see with a credit card.

So, if you get a credit limit of $75,000 but only need $45,000 to complete your project, interest will be charged on the $45,000. As you repay that amount, you might realize down the line that you need additional funds to complete a separate project.

From there, you can access additional funds as needed. These arrangements can be attractive, but it's important to understand how repayment is structured and any potential fees.

Commercial Real Estate Loans

Business owners looking to lower utility costs can look into energy-efficient upgrades, like solar panels, LED lighting, and HVAC systems. If you want to purchase a commercial property with these features or make significant upgrades on your existing property, a commercial real estate loan can help.

Green energy upgrades like these can both reduce costs and increase property value, providing short-term and long-term benefits.

Before applying for financing, understand your goals to identify the type of financing that might best serve your business needs. Compare lenders across a range of platforms and look at eligibility requirements, interest rates, fees, and repayment terms.

These funding options, along with housing repair grants and other energy-efficiency initiatives, may help increase revenue and generate leads. Understanding how each program and loan option works allows you to serve clients effectively and expand your operations.

Final Thoughts

While housing repair grants are a tool to help homeowners who are making energy-efficient upgrades, the benefits can cascade down to business owners as well. Whether you're a contractor, home repair business, or home renovation company, you can capitalize on these funding opportunities to help grow your revenue. You can contact your local housing authority, clean energy agency, or nonprofit organizations and apply to be a licensed contractor or service provider for relevant programs.

Additionally, you can look into other financing options that can help fuel your growth. Business lines of credit are a flexible financing tool that gives you ongoing access to funds, while term loans provide a lump sum upfront.

Being a business owner requires creativity, adaptability, and perseverance, as well as the understanding that funding can come in different ways.