Sealed is excited to announce that we have partnered with the New York Green Bank to launch the groundbreaking Sealed HomeAdvance program!
HomeAdvance is the first program that invests in the energy savings resulting from residential efficiency improvements. This program will help New York homeowners benefit from up to $7.5 million in efficiency projects. For the first time ever, homeowners can pay for these improvements using the resulting energy savings instead of paying cash or taking out a loan.
This is a huge step forward for both our business and the residential efficiency industry, and we’re excited to spread the word and begin rolling out the program!
How does it work?
HomeAdvance takes the energy that a home is wasting and reinvests it into an efficiency project. The program covers most or all of the upfront project cost, and the improved efficiency pays back the project cost over time. Under this structure, the homeowner receives a more comfortable, valuable, and safe home while maintaining a similar energy budget.
The linchpin of HomeAdvance is our patent-pending energy analytics. We use our proprietary algorithms to predict a home’s energy savings, then guarantee the savings to the customer by replacing their utility bills with a Sealed bill based on their past usage, adjusted for weather and energy prices.
Why did we create HomeAdvance?
Our industry routinely tells homeowners, “Install these improvements, and the energy savings will pay for everything.” However, two main problems usually stand in the way:
- Most homeowners can’t or don’t want to write a large check or take out yet another loan to do this work.
- The homeowner retains all of the performance risk. If the project underperforms, the homeowner is on the hook — no one’s going to give a refund or reduce the customer’s monthly loan payments.
We created the HomeAdvance program in response to these market challenges. We’re the first company to put our money where our mouth is: we pay for most of the upfront project cost, then use the guaranteed energy savings to pay ourselves back.
The customer bears no risk, and gets a higher quality home without another loan. Because Sealed is assuming the risk, it’s in our best interest to ensure high quality installation, maintenance, and provide helpful advice at every step of the process.
Why is this a big deal?
This is the first time that residential energy savings are being treated like a real financial commodity. Even though a “penny saved is a penny earned”, historically a “kilowatt saved” was not treated as a kilowatt earned… in other words, saving energy has not been valued the same way as producing new energy.
Since 1970, energy efficiency has more than doubled new energy supply in the US. But banks still don’t lend based on energy savings, and utilities don’t buy energy savings valued in the same way as new energy generation.
Sealed is working hard to ensure that energy savings are treated like any other valuable energy resource. We believe that the value of energy savings should be able to be invested directly into homes, which means that making your home more comfortable should not be an expensive endeavor.
When homeowners work with us to install insulation, air sealing, and/or HVAC upgrades that produce valuable energy savings, we work with financial institutions like the New York Green Bank to cover the costs of some or all of the project based on the future energy savings that we guarantee. And we coordinate with the utilities who will provide incentives based on the value of the energy savings (purchase less energy, prevent new power plants, less pollution, etc.).
Energy savings should be valued the same as energy production, and HomeAdvance is making it possible by making energy savings an actual resource instead of a hidden resource.
In short, HomeAdvance is turning energy efficiency into a real boy…