When I did research into sustainable business five years ago, the market was stymied by lack of liquidity. Sellers of green technology faced a lack of much venture and institutional investment interest. Buyers of green technology faced a different problem. Some energy conservation technologies have a long payback period. The buyer needs to spend the money up front, and then reaps consistent savings over the life of the asset. This is a financing opportunity.
via Sustainablog, Fannie Mae is offering an Energy Efficiency Mortgage Program. The program allows homebuyers to finance energy improvements.
According to Cascadia Blog, these mortgages have been on the market since 1979, but required cumbersome paperwork. FNMA’s program streamlines the paperwork and increases adoption. It’s still a niche product, says Joel Weise of Indigo Financial Group, based in Lansing Michigan, a network of mortgage brokers which specializing in these mortgages. Another gap in the market is the lack of home appraisers who can evaluate energy efficiency, says says Wiese in the comments of the Residential Energy Savings Network.
So, a large upside to be had from good marketing and education, with the biggest downside risk being the overall housing bubble. A real estate market crash would take down this generation of innovation and education.