Committee Passes Bill to Increase Homeowner Access to Energy Upgrades

HB25-1268 would allow Coloradans to access low-interest financing for energy-efficient upgrades

DENVER, CO – The Senate Finance Committee yesterday passed legislation to allow customers to finance energy-efficient upgrades to their homes through smaller monthly payments on their utility bill.

HB25-1268, sponsored by Senators Kyle Mullica, D-Thornton, and Faith Winter, D-Broomfield, would create a utility on-bill program to allow customers to finance energy and efficiency upgrades to their homes through monthly repayments on their utility bills. Eligible upgrades would include windows, doors, insulation, certain water heaters, and heat pumps.

“Many Colorado homeowners want to make energy-efficient and long-lasting upgrades, but can’t afford the upfront cost,” said Mullica. “This bill creates an opportunity for homeowners to access low-interest financing that they can pay through their existing utility bill. Ultimately, this bill makes energy-efficient upgrades more affordable and approachable while taking steps to meet Colorado’s climate goals.” 

“This bill meets homeowners where they’re at by creating a simple, streamlined, and affordable way to pay back the costs associated with energy-efficient upgrades” said Winter. “This program is a win-win that gives homeowners more options, increases access to energy-efficient home improvements, and moves Colorado toward a more climate-resilient and sustainable future.” 

HB25-1268 would require a utility company with more than 500,000 residential customers to set up and maintain this on-bill program. Other utility companies could participate voluntarily. The Colorado Energy Office would establish program guidelines. 

Energy-efficient upgrades are one of the most effective ways to drive down utility costs and reduce strain on the electric grid. For example, homes with heat pumps, heat pump water heaters, and updated insulation can save hundreds of dollars per year on their utility bills. 

The Senate Finance Committee also passed HB25-1269, sponsored by Senators Matt Ball, D-Denver, and Cathy Kipp, D-Fort Collins. This bill would update Colorado’s Building Performance Standards Program and provide technical assistance to the commercial building sector to improve energy efficiency and reduce emissions, affirming Colorado’s place as a leader in building decarbonization. 

Both bills now head to the Senate Appropriations Committee for further consideration. Track their progress HERE: HB25-1268, HB25-1269.