NYSERDA Residential Financing (On-Bill Recovery, Smart Energy Loan, Companion Loan)

Administered by: New York State Energy Research and Development Authority (NYSERDA) Status: Active in 2026 Verified: May 27, 2026 against Residential Financing Programs, NYSERDA Source quality: Mixed. On-Bill Recovery and Smart Energy Loan terms verified against the NYSERDA program page; Companion Loan terms are not surfaced on the primary overview and are described below based on what NYSERDA's lending partner returns at application.

What it is

NYSERDA runs three residential loan products under the Green Jobs – Green New York (GJGNY) program, the 2009 state law that funds low-cost financing for home energy upgrades. The three are the On-Bill Recovery Loan, the Smart Energy Loan, and the Companion Loan. They cover the portion of a project that a rebate does not.

You do not pick the lender. NYSERDA contracts with a financing administrator (currently Slipstream) and a small set of lending partners. You apply through NYSERDA, your credit and project are reviewed, and a loan offer comes back if you qualify.

All three products fund the same work: heat pumps, solar PV, insulation and air sealing, heat pump water heaters, and other measures eligible under NYSERDA's residential programs. The difference is how you repay and how much you can borrow.

Who qualifies

1- to 4-family home in New York State; you own it, or you are the named utility-account holder with owner authorization (On-Bill Recovery).
For On-Bill Recovery: home served by Central Hudson, Con Edison, PSEG Long Island, NYSEG, National Grid (Upstate), Orange & Rockland, or Rochester Gas & Electric.
Minimum credit score of 540 plus a debt-to-income review. Recent bankruptcy and active mortgage delinquency are disqualifying.
Work performed by a contractor participating in the relevant NYSERDA program (Comfort Home, NYS Clean Heat, NY-Sun, or Home Performance with ENERGY STAR).
Stand-alone additions, new construction, and gut rehabilitation are excluded.

Income-qualified households at or below 80% of state median income may receive a discounted rate on the Smart Energy Loan and On-Bill Recovery Loan, applied at underwriting.

What you get

Same eligible work, different repayment and underwriting.

On-Bill Recovery Loan. $1,500 to $25,000. Term of 5, 10, or 15 years, capped at the useful life of the financed measures. Repayment appears as a line item on your monthly utility bill. A declaration is filed with the County Clerk so the obligation transfers with the meter if the property is sold. The monthly loan charge plus estimated energy savings must net positive (the bill-impact test) before the loan is issued.
Smart Energy Loan. $1,500 to $25,000. Term of 5, 10, or 15 years, capped at the useful life of the financed measures. Repayment is a standard monthly installment by check or ACH. No bill-impact test. Underwriting is credit-based and slightly more flexible than On-Bill Recovery.
Companion Loan. Sits alongside a Renewable Energy Tax Credit Bridge Loan or a primary GJGNY loan when a project exceeds the $25,000 cap on the other products, or when solar is financed separately from efficiency work. Indicative range not published on the program overview page; loan offers from NYSERDA's lending partners are returned after the eligibility check.

Interest rates vary by underwriting tier and are not published on the program overview page. NYSERDA's rate estimator returns a quote after you submit basic credit and project information.

How to apply

Get an itemized quote from a contractor participating in the NYSERDA program for your work — NY-Sun for solar, NYS Clean Heat for heat pumps, Comfort Home or Home Performance with ENERGY STAR for shell work.
Apply through NYSERDA's portal (administered by Slipstream) or at residential.financing@nyserda.ny.gov. The application captures scope, income, and authorization for a soft credit pull.
Receive a loan offer with product, rate, term, and monthly payment. For On-Bill Recovery, the offer includes the bill-impact calculation.
Sign the loan documents. For On-Bill Recovery, a declaration is recorded with the County Clerk. The contractor is paid from loan proceeds after completion and inspection.
Repayment begins the month after closeout, on your utility bill or by ACH or check.

Decisions typically return within 7 to 10 business days of a complete application.

How this stacks with other programs

These loans cover the unsubsidized portion of a project after rebates apply. A typical sequence:

A cold-climate heat pump quoted at $18,000. NYS Clean Heat pays a utility rebate of roughly $6,000 to the contractor. Out-of-pocket is $12,000. A Smart Energy Loan at $12,000 over 10 years covers the balance.
A 7 kW solar array quoted at $21,000. NY-Sun pays an upfront incentive through the installer. The federal residential solar credit expired December 31, 2025, so the remaining cost after NY-Sun is what you finance. An On-Bill Recovery Loan repays through your Con Edison or National Grid bill.
For an income-qualified household, EmPower+ covers most or all of the project at no cost. Use these loans when EmPower+ does not cover the full scope, or when your income sits above the EmPower+ threshold but below the GJGNY income-qualified rate threshold.

You cannot apply two NYSERDA loans to the same measure. Separate measures can be financed separately, such as a Smart Energy Loan for insulation and an On-Bill Recovery Loan for a heat pump.

What to ask your contractor

Which NYSERDA lending partner will receive my application, and what underwriting timeline do they quote?
Will the On-Bill Recovery declaration transfer with the property if I sell before the loan is paid off, and how does it show up to a buyer?
Does on-bill repayment appear on my credit report? Smart Energy Loan repayments do; On-Bill Recovery repayments are tied to the utility account, not a tradeline.
If my project exceeds $25,000, can I combine an On-Bill Recovery Loan with a Companion Loan?
What income documentation qualifies me for the income-qualified discounted rate?

Common pitfalls

Failing the bill-impact test. On-Bill Recovery requires estimated savings to exceed the monthly loan charge. Solar-only projects in low-usage homes sometimes fail. Smart Energy Loan is the workaround.
Wrong utility. Municipal utility territories and non-participating utilities cannot use On-Bill Recovery.
Contractor not participating. Loans are not issued for work outside the corresponding NYSERDA program. Confirm enrollment before signing a contract.
Useful-life cap. A 15-year term is not available for measures with a shorter useful life.
Below the credit floor. Loans are denied below a 540 score. Co-signers are not accepted.

Important dates

GJGNY financing has no announced sunset as of May 27, 2026. The program is funded through Regional Greenhouse Gas Initiative auction proceeds and ratepayer surcharges, both set on annual cycles. Interest rates can change at NYSERDA's discretion; your rate is locked once you sign.

Source

Residential Financing Programs, NYSERDA (retrieved May 27, 2026; loan amounts, terms, eligible measures, participating utilities, and underwriting floor verified here)
Green Jobs – Green New York Program, NYSERDA (retrieved May 27, 2026; program-mission context and minimum loan amount confirmed)
Companion Loan terms are not surfaced on the primary program overview. Confirm Companion Loan amounts and rates with NYSERDA at 1-866-NYSERDA before relying on them.

See also: Green Jobs – Green New York.

NYSERB.com is an independent research site. It is not affiliated with NYSERDA, the State of New York, or any utility. Verify all program details and incentive amounts directly with NYSERDA before making any financial decision.

Verified against www.nyserda.ny.gov, www.nyserda.ny.gov on May 27, 2026.