Single- and multi-family homes could get energy help | News

The funding will establish the Housing Environmental Improvement Revolving Loan and Grant Fund, a new state loan-and-grant program. The program will help pay for energy efficiency upgrades at existing single-family and multi-family homes. It is expected to help residents save money on their energy bills.

“With this funding, we’re also removing barriers that prevent people from being able to install energy-efficient upgrades. Everyone should be able to realize the savings that can come from installing energy-efficient upgrades in the home,” Lamont added. “Altogether, these funds will help expand affordable housing in Connecticut by rehabilitating existing housing and integrating energy upgrades that lower utility costs, improve resident comfort and extend building life.”

The program will be run by the Connecticut Department of Energy and Environmental Protection (DEEP). It will help cover costs for upgrades such as more efficient heating and cooling systems, improvements to building insulation and other changes that reduce energy use.

State officials said the new program builds on the success of DEEP’s Residential Energy Preparation Services program. That program recently used all its available funding to remove hazards in dozens of homes, enabling those homes to move forward with energy upgrades.

Lawmakers approved the creation of the program and its bond funding earlier this year through Public Act 25-125. Lamont signed the bill into law during the summer.

DEEP Commissioner Katie Dykes said the program is focused on helping residents who are most affected by high utility costs.

“The Housing Environmental Improvement Revolving Loan and Grant Fund builds on DEEP’s commitment to addressing high utility costs for low-income residents,” Dykes said. “With housing and utility costs rising, this funding is essential to help residents and developers, who live in or own low-income single and multifamily buildings, access weatherization and energy efficiency measures that can lower utility bills, increase comfort and safety and keep housing costs affordable.”

Of the $18 million approved, $12 million will be used to offer loans to developers. Those loans will support energy upgrades in existing multi-family affordable housing. Improvements may include new heating and cooling equipment and upgrades to building envelopes, such as insulation and sealing.

The remaining $6 million will focus on helping lower-income homeowners remove health and safety barriers that prevent energy work from being done. These barriers include asbestos, old knob-and-tube wiring, mold and moisture problems.

Homes with these issues often cannot qualify for state or federal weatherization programs. Contractors are not allowed to proceed with energy audits, insulation or window work if these hazards are present.

State data shows how common the problem is. In 2024, about 30% of income-eligible Home Energy Solutions homes and 50% of Weatherization Assistance Program homes were delayed because of health and safety barriers.

Officials said lower-income residents face the highest energy burden, meaning they spend a larger share of their income on energy bills. Without help in removing these barriers, many homes cannot move forward with upgrades that would lower bills and improve comfort.

DEEP said it gathered public input last year through a request for information. Residents and housing groups pointed to challenges such as high costs, a lack of technical support, difficulty obtaining financing, and confusion about available programs. The agency also held three roundtable discussions in June focused on affordable multi-family housing.

The next step is to select organizations to help run the program. DEEP hopes to select those partners by early to mid-2026, with the goal of launching both loans and grants by the end of 2026.

State officials said the new program adds to other recent actions taken to reduce energy costs. Earlier this year, Lamont signed legislation expected to save ratepayers at least $300 million on electricity bills over the next two years. Connecticut’s energy efficiency programs are also expected to continue delivering hundreds of millions of dollars in long-term savings for residents.