Across the country and around the world Passive House is being recognized as the building standard that delivers predictably efficient, healthy housing. As states and jurisdictions look to create a more resilient community that will be able to weather the ongoing storm of climate change, more and more incentives are being offered to make these resilient buildings more accessible.
Passive House can be built affordably and close to, or at cost parity, with experience. Your first couple of Passive House buildings can pose enough of an additional cost to dissuade those otherwise interested in providing the benefits of Passive House. Consequently, government and public utility program building financial incentives have been vital in instigating Passive House production. The building financial incentives are typically addressing multifamily housing, both market-rate and affordable. There are, so far, four basic forms of incentive providers:
- Utility-based funding
- Municipal funding
- States with low-income tax credit-based incentives
- Lender preferential financing pricing
Here is what we hope will be a growing list, of incentives available across the US.
National Building Incentives and Financing Opportunities
DSIRE USA: We recommend searching this database to find potential subsidies across the country.
45L Tax Credit: From 2023 to 2032, Section 45L of the Internal Revenue Code provides a $5,000 tax credit for any home or multifamily unit with a Zero Energy Ready Home certification meeting specified prevailing wage requirements.
IRA possibilities, the 45L tax credit, and the 30% ITC: PHN hosted a webinar on projected incentives for Passive House projects here. A guide to the Inflation Reduction Act incentives can be found here.
Fannie Mae Green Building Loans: Passive House certification is recognized for preferential financing via Fannie Mae’s Green Building loan program.
California
CEDA -California Energy Design Assistance: This program offers energy modeling assistance as well as incentives for Decarbonization, Design Team, and High Performance measures. The program is funded by California utility customers and administered by PG&E and other investor-owned utilities (IOUs), under the auspices of the California Public Utilities Commission.
Multifamily Energy Savings Program (MESP): This program offers various financing options, plus a “custom incentives” option that may well be suited to Passive House-specific items not currently on their radar. All-electric HVAC is also well supported by the program.
CEC’s BUILD Program: This program offers developers support for projects that can confirm above baseline code projected savings. Details regarding qualifications and subsidy amounts may be found here.
CA Energy Smart Homes: This program offers up to $20k in electrification subsidies (new and retrofit) for MEP design, plus additional incentives for electric HVAC in new and existing low-rise multifamily buildings (in addition to SFH’s and ADU’s).
DOE Innovative Clean Energy Loan Guarantee Program: This is not a direct funding source, but offers loan guarantees to projects that meet one or more of their listed criteria. Passive House projects could convincingly fit into a couple of their categories.
Demand FlexMarket Program: This California program is structured to pay owners based on delivered efficiency. Based on modeled data of Passive House projects in California, we know that PH projects deliver the peak-load shifting and load shaving features most valued by the program. We’d love to see large tracts of Passive House buildings enrolled in this program to reap the well-deserved rewards of building better.
Sacramento Municipal Utility (SMUD) Program: This program is designed for multifamily properties of 5 units or more with incentives to support switching to cleaner, more efficient electric space heating, water heating, and cooking appliances. Incentives are also available to install upgrades that improve energy efficiency and to install electric vehicle charging stations.
Southern California Edison (SCE) Multifamily Resources: These resources include programs for income-qualified multifamily properties to receive a no-cost energy assessment, attractive financing options for energy efficiency upgrades for both affordable and market-rate multifamily properties, interest-free financing for the installation of qualified energy efficiency measures in multifamily common areas, and incentives for solar-installation.
Central Coast Community Energy (3CE): The New Construction Electrification Program will provide housing developers and homeowners with incentives to build all-electric housing. Housing projects must be built to all-electric standards for all energy utilities needs, including but not limited to water heating, space heating, and cooking appliances. Incentives are determined on a per unit basis and will be provided “downstream” to developers and homeowners upon successful completion of the project. Eligible projects must be completed between August 1, 2024 through September 30, 2025.
Energy Smart Homes: This program supports the new construction of all-electric Single Family, Duplex, Townhome, ADU, or Multifamily Low-Rise structures. Additional incentives are available for Passive House Certification. See the guidelines.
Colorado
Colorado Springs Utilities Builder Incentive Program: Homes designed and built to operate efficiently using only electricity and located within the service territory have access to an incentive totaling more than $3,500 depending on requirements met. See the application for full details.
Xcel Energy Marshall Fire Recovery Reconstruction Rebate: Xcel Energy is offering one-time incentives specifically for those who lost their homes in the Marshall Fires. These incentives will be available to fire-affected residents who previously had an Xcel Energy account on a fire affected parcel at the time they take possession of their new house. Extra incentives are offered to Passive House certified houses. See guidelines.
Denver’s Office of Climate Action – All Electric New Construction Rebates: Denver’s Office of Climate Action will be launching rebates for new construction commercial and multifamily projects in early 2025. Learn more here and sign up for the interest form here.
Connecticut
Connecticut Housing Finance Authority: Find the Low-Income Housing Tax Credit (LIHTC) Guidelines for 2024 and 2025 here.
Energize Connecticut: The Residential New Construction All-Electric Program supports residential customers building an all-electric new home or gut rehab that will receive electric services from Eversouce or UI. The All-Electric Bonus Incentive is available to those who achieve Passive House certification. See guidelines.
Eversource: Eversource is offering new incentives and assistance to support the construction of multi-family buildings (five units or more) with deep energy savings. Certification and design incentives are available to assist builders and developers in achieving Passive House certification or similar levels of efficiency. Learn more.
Delaware
Delaware State Housing Authority: Find the Low Income Housing Tax Credit (LIHTC) Guidelines here.
Idaho
Idaho Housing and Finance Association: Find the Low Income Housing Tax Credit (LIHTC) Guidelines here.
Illinois
ComEd Affordable Housing New Construction Program: ComEd offers technical assistance and incentives to developers of affordable housing to help them exceed Illinois Energy Conservation Code. Find the project eligibility requirements here.
Massachusetts
MassSave: MassSave is a collaborative of local electric and natural gas utilities and energy service providers and includes Berkshire Gas, Cape Light Compact, Eversource, Liberty Utilities, National Grid, and Unitil. Multifamily buildings of 5 units or more can receive significant incentives. MassSave also provides Training Incentives for CPHD Training.
Minnesota
Minneapolis Homes Financing Program: This program has a yearly competitive application process to sell City-owned properties and provide financing for affordable ownership developments that meet City goals. There is an additional funding incentive for homes that receive Passive House certification. Find the guidelines here.
Minnesota Power: The New Construction Energy Efficiency Program offers a building certification bonus of $250 per home for DOE ZERH certification, in addition to up to $4000 in rebates for air sealing, insulation, window, HVAC, and water heating incentives.
New Jersey
New Jersey’s Clean Energy Program: Builders can earn $4,000 per single family home, $2,500 per townhome, and $1,500 per multifamily unit certified under DOE ZERH, with additional incentives available for each MMBtu saved/and or renewables. See current guidance.
New York
New York State Energy Research & Development Authority (NYSERDA): This organization is a quasi public-private entity, funded in large part from an energy sales surcharge from an array of energy utilities, and their customers, across the state. NYSERDA provides significant funding support for new construction.
Homes and Community Renewal Multifamily Finance Program: Find the Low Income Housing Tax Credit (LIHTC) Guidelines here.
Resilient and Ready Home Repair Program: Homeowners under certain income thresholds who were affected by the Long Island Storm, Tropical Storm Debby, or the July 2024 storms can apply for funds to repair some damage. Funds may only be used to address damage that occurred as a direct result of the qualifying storms and related floodings. Use of funds is limited to emergency house repairs necessary to make the home safe, sanitary, and livable, including replacement of HVAC systems, water heaters, insulation, window and door repair or replacement, and more. Find the Resilient and Ready Home Repair Program guidelines here.
Oregon
Eugene Water and Electric Board: The Energy Efficient New Multifamily Construction Program awards $1,100 per dwelling unit for multifamily buildings that are built to Passive House standards. See guidelines.
Midstate Electric Cooperative: This Energy Efficient Rebate can be awarded for Heat Pumps, Heat Pump Water Heaters, Energy Efficient Windows, and more. See guidelines.
Umatilla Electric Cooperative: This Energy Efficient Rebate can be awarded for Heat Pumps, Heat Pump Water Heaters, Energy Efficient Windows, and more. See guidelines.
Pennsylvania
Pennsylvania Housing Finance Agency: Find the Low Income Housing Tax Credit (LIHTC) Guidelines here.
Texas
Entergy Solutions: The High-Performance Homes program is a residential market transformation program that offers incentives to homebuilders to advance the adoption of new, energy efficient homes in Entergy Texas’ territory. These incentives reward homebuilders who prioritize high efficiency, helping to reduce energy and operational costs. DOE ZERH structures can be awarded up to $350 per home.
Oncor New Homes Program: The Oncor New Homes Program is a market transformation program that provides incentives to homebuilders who construct Zero Energy Ready Homes. See Guidelines.
Virginia
The Department of Housing and Community Development: The Housing Innovations in Energy Efficiency (HIEE) funding makes energy efficiency upgrades to new and existing residential buildings to reduce energy bills for low-income Virginians. Funds are allocated between the Affordable and Special Needs Housing program and the Weatherization Deferral Repair program.
Washington
Snohomish County Public Utility District #1: SnoPUD will offer an incentive for ZERH-certified homes through 2026. Contact SnoPUD for details on available incentives.
Wisconsin
Focus on Energy Manufactured Homes Pilot: This pilot program will provide incentives to manufactured housing retailers pursuing Zero Energy Ready Home certifications. A single floor home may earn $1,250 for a ZERH certification while a double floor home may earn $1,750. The incentive can be collected after the home has been sited. See Guidelines.
We are continually advocating for Passive House-specific subsidy programs across the country. We will continue to update our resource list as new programs are added. Please notify us if you find any other funding or subsidy programs that we may have missed: info@passivehousenewtork.org.
