EEM Eligible Upgrades Explained: What Energy Efficient Home Improvements You Can Finance

When buyers hear “Energy Efficient Mortgage,” the first question is usually: What upgrades actually qualify? The answer surprises many people—because EEM eligible upgrades go far beyond a single appliance or small fix.

An Energy Efficient Mortgage (EEM) is designed to help buyers finance meaningful energy efficient home improvements that lower utility bills, improve comfort, and reduce long-term ownership costs.

How EEM Eligibility Works

EEMs focus on improvements that measurably reduce a home’s energy use. Upgrades must be cost-effective and supported by an energy assessment, but they don’t have to be flashy.

The goal is long-term performance—not short-term cosmetics.

1. Heating and Cooling Systems (HVAC)

One of the most common and impactful EEM upgrades is HVAC replacement.

An energy efficient HVAC loan through an EEM can cover:

  • High-efficiency furnaces or heat pumps

  • Energy Star–rated air conditioners

  • Smart thermostats

  • System ductwork improvements

Why it matters: Heating and cooling are often the largest energy expense in a home. Upgrading systems can significantly reduce monthly utility bills.

2. Insulation and Air Sealing

Insulation upgrades are often invisible—but incredibly effective.

Eligible improvements include:

  • Attic, wall, and floor insulation

  • Air sealing and weatherization

  • Crawlspace and basement insulation

Why it matters: Proper insulation keeps conditioned air inside, reducing heating and cooling demand year-round.

3. Windows and Doors

Older windows and doors are a major source of energy loss.

EEMs can finance:

  • Energy-efficient windows

  • Insulated exterior doors

  • Proper sealing and installation

Why it matters: These upgrades improve comfort, reduce drafts, and help stabilize indoor temperatures.

4. Water Heating Improvements

Hot water usage adds up quickly.

Eligible upgrades may include:

  • High-efficiency water heaters

  • Tankless systems

  • Heat pump water heaters

Why it matters: Efficient water heating reduces energy consumption without affecting daily comfort.

5. Solar and Renewable Energy Options

Yes—solar panels can be financed with a mortgage when structured correctly.

A solar panels mortgage through an EEM may include:

  • Solar photovoltaic systems

  • Renewable energy components tied to energy savings

Why it matters: Renewable energy reduces dependence on utility providers and protects against rising energy costs.

6. Ventilation and Indoor Air Quality Improvements

Energy efficiency also impacts health and comfort.

Eligible improvements may include:

  • Energy-efficient ventilation systems

  • Air filtration and circulation upgrades

Why it matters: Better air quality improves livability while maintaining energy efficiency.

Why These Upgrades Matter Long-Term

Energy upgrades aren’t just about lower bills—they’re about future-proofing your home.

Long-term benefits include:

  • Lower monthly operating costs

  • Improved comfort year-round

  • Reduced exposure to energy price increases

  • Increased resale appeal

  • Better overall home performance

An EEM helps buyers invest in what matters most over time.

Why Guidance Makes the Difference

Not all upgrades deliver equal value. Working with professionals helps buyers prioritize improvements that offer the greatest return—both financially and functionally.

Not sure which upgrades make sense?

Every home is different—and the best improvements depend on your goals and budget.

Let’s review your options and identify which energy upgrades can deliver the biggest impact for your home.

If you’d like to learn more, click the link below for more information.

PPT Inspections is a trusted, locally owned company serving Detroit, Troy, Sterling Heights, and surrounding areas since 1994. Specializing in comprehensive home inspections, we provide peace of mind with expert evaluations for buyers, sellers, and homeowners.

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