The REEL program provides lenders with a credit enhancement, or a type of insurance, that helps control loan risk. If a borrower defaults, the lender may access the credit enhancement funds to mitigate losses. Because they have access to the credit enhancement, REEL lenders can offer more attractive terms to borrowers and/or make financing available to borrowers with a wide range of credit scores.
What if my electric service is provided by a different energy company, such as a co-op, or public utility like SMUD or LADWP)?
Your project can still receive financing under the REEL program if your project meets program guidelines and you receive natural gas service from one of the following investor-owned utilities: Pacific Gas and Electric Company, San Diego Gas & Electric Company or Southern California Gas Company.
An energy audit or pre-project inspection is required only if you or your contractor are also participating in an investor-owned utility rebate or incentive program that requires it.
Yes. If the project did not receive an investor-owned utility rebate or incentive, a program representative may visit the home within 180 days of the loan enrollment date to verify that the contractor complied with REEL program regulations.
Rental or leased properties are eligible with the owner’s written consent to have the eligible improvements installed. Some lenders limit financing to owner-occupied properties.
Eligible properties are single-family residences of 1 to 4 units. This includes single family homes, condos, townhouses, duplexes, triplexes, fourplexes, manufactured and mobile homes. Manufactured and mobile homes are eligible if the home is anchored to a permanent, site-built foundation constructed of durable materials, like concrete, mortared masonry, or wood). Note that some lenders will finance up to four units, while others finance only a single residential unit.
You can finance any measure that is listed on the REEL Eligible Energy Efficiency Measures+ list, as long as it meets the minimum efficiency requirements listed. Following are some examples of eligible energy improvement projects.
Contractors must be REEL participating contractors; however, it’s easy for licensed contractors to become REEL participating contractors. REEL participating contractors take a 1-hour, online training and submit a simple application to get approved. If you have a contractor you would like to work with, but they are not currently a REEL participating contractor, ask them to visit the contractor resources page to enroll.
Check our list of licensed contractors. You are always encouraged to do your own research and due diligence when selecting a contractor. You can look up information on a contractor through the Contractors State License Board (CSLB)+. Websites that review contractors include Better Business Bureau (BBB)+, Yelp+ and Angie’s List+.
Yes. If you currently have a PACE loan and would like to do additional energy efficiency projects, you can also apply for REEL financing, or vice versa. However, the lender will look at your total debt-to-income ratio when making a decision. Also, both loans cannot finance the same project.