Smart-E Loan FAQ

What is a Smart-E loan?

A Smart-E loan is an unsecured, fixed rate loan (available for 1-4 unit owner-occupied homes) that assists homeowners with financing over 40 home energy and resiliency-related improvements.

What is the Smart-E Loan Process?

1. Choose from one of our pre-approved contractors for your project.
   1. TIP – schedule a Home Energy Solutions (HES) audit for additional savings (not required for Smart-E loan)
   2. The Green Bank recommends comparing 3 contractor quotes
2. Once a contract is in place, apply for Smart-E Loan pre-approval with a participating lender and notify contractor which lender has pre-approved your Smart-E Loan.
3. Contractor submits project to the Green Bank, which reviews and instructs lender to close loan.
4. Lender closes loan with customer, issues first 1/3 payment to contractor.
5. Contractor completes project and submits final docs to the Green Bank for review.
6. The Green Bank approves release of final funds for contractor.
7. Lender issues final payment to contractor.  (Optional survey and inspection becomes available)

How long does the Smart-E process take?

The process can vary depending on the type of project.  However, many go from application to loan closing in less than a week’s time, with some taking as little as day.

What can I finance with Smart-E?

There are over 40 different measures available that can be financed with Smart-E.

What if I do not see my project on your list?

Our list of 40+ energy efficient projects is always expanding.  If you believe your project contributes to the energy efficiency of your home, please reach out to us at [email protected]

What if my project does not meet your technical requirements?

Our equipment requirements are set to ensure efficiency standards that will generate savings and comfort for homeowners.  Additionally, many of our requirements are aligned with state and local rebates and cannot be adjusted.  If you have a unique situation and an extenuating circumstance arises where the equipment cannot meet the listed requirements, please contact us.

I need to complete additional work to install the Smart-E equipment, can I include it?

Possibly!  If work needs to be completed for the energy efficient measure to be installed, this may be included in the 25% of the related project costs section.  Examples include roof repair for solar, electrical upgrades for heat pumps, wall repair for windows, etc. The Smart-E program reserves the right to make a final determination on eligibility.

Am I required to put any money down for my project?

As long as a homeowner’s pre-approved Smart-E Loan covers the total project amount they will not need to put any money down.

If a homeowner’s total project cost exceeds the Smart-E Loan maximum, the project cost balance not covered by their Smart-E Loan will need to be paid for out of pocket by the homeowner to their contractor.

Can I use rebates or another loan product with my Smart-E loan?

Yes! Smart-E loan financing does not prohibit a homeowner from qualifying for additional programs, rebates, incentives, etc. and can be used in conjunction with a Smart-E loan.

I have a question regarding my rebate.

The Smart-E program does not handle or approve any rebate questions.  Please reach out to your contractor, utilities or energizect.com for additional information.

What role does the Connecticut Green Bank or Smart-E team play in the financing process?

The Connecticut Green Bank Smart-E team is the program administrator.  We prioritize project facilitation along with the vetting and compliance of contractors and post installation inspections when necessary.

Who is responsible for the Smart-E program?

The Smart-E program is administered by the Connecticut Green Bank, a quasi-state agency.

If I get approved for and accept a 10-year term Smart-E loan and I sell the house before the end of 10-years, can the new owner assume the remaining balance on the loan?

No. A Smart-E loan is not transferable from the seller to the buyer during the sale of a home.  If a Smart-E loan is in repayment when a home is sold, please consult your home closing attorney for available options.

Can I use my own contractor?

More than 300 contractors across the state are currently offering the Smart-E loan for various projects.  We welcome new contractors to join the program, however they must become an approved contractor in order to use the Smart-E Loan program.  New contractors should contact us to learn more about joining the program.

What is required to be a contractor?

All Smart-E contractors must be properly licensed and insured for the work being performed.  Additionally, contractors must agree to the Smart-E program requirements along with completing a Smart-E training that discusses the program and how to use our program management tool, NGEN.

How is my contractor paid?

Your lender will pay your contractor directly. One-third of the loan amount will be disbursed at loan closing, while the final two-thirds of the loan amount will be paid by your lender to your contractor after project completion.  Note: Solar projects split the final two-thirds disbursement in half, moving one-third of the loan amount to an additional disbursement during installation as a result of the length of project installation.

I am having an issue or disagreement with my contractor, what should I do?

All installation contracts are between the homeowner and contractor, and every attempt should be made to resolve the dispute between these two parties.  If a solution cannot be reached, please contact the Smart-E team with a description of issue.

I smell gas from my installation. What should I do?

Immediately call the gas company for them to inspect your project.  Also be sure to follow up with your contractor.

My contractor has told me they have not received any notification from the lender to submit the project to the Green Bank. What does this mean?

One lender, Capital for Change, requires contractors to sign up with them directly to execute projects.  As a result of that sign up, contractors are notified when a customer loan application is approved.  If you have not applied for your Smart-E loan with Capital for Change, please inform your contractor of the lender who provided your loan pre-approval and ask your contractor to submit the project to the Connecticut Green Bank.

Is an inspection required after (or for) my installation?

All contractors have periodic inspections performed on their installations at random to ensure compliance with the program.  As a homeowner you are not required to have your project inspected by a Connecticut Green Bank inspector. You also have the option of requesting an inspection.

What lenders are available?

You can find the participating lenders here.

Can I use my own lender?

No, you must use one of the approved, participating lenders. At this time, we are not adding new lenders for individual projects.

With whom do I complete my loan paperwork?

You will complete your loan paperwork with one of the approved, participating lenders. Please note: the Smart-E team does not issue loan paperwork.

When is my first loan payment due?

Your loan paperwork should have this date listed.  If you have any additional questions, please contact your lender directly.

Where do I make my loan payments?

Your loan payments are made directly to the lender you signed your loan documents with, so please reach out to that lender directly for more information.

I have not heard from my lender about closing the loan. What should I do?

Please feel free to reach out to your lender at any time for an update on your Smart-E loan and to inquire about signing your loan paperwork.

My lender informed me they have not received the approval to close the loan. What does that mean?

This most likely means your contractor is still in the process of submitting your project to the Connecticut Green Bank for review. The Connecticut Green Bank typically completes their technical review of submitted projects within 48 hours.  Please feel free to reach out to your contractor for an update.  Contractors may also be looking to contact you as well for any signatures or project questions.t