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Home Energy & Member Engagement

How Home Energy Upgrades Can Unlock New Members and Deepen Member Relationships


In an increasingly competitive financial landscape, credit unions are grappling with the challenge of attracting new members while retaining and deepening relationships with their existing ones. Changing consumer expectations, the rise of digital-first banking alternatives, and the growing emphasis on sustainability have reshaped how members perceive value. To stay relevant, credit unions must not only offer competitive financial products but also demonstrate a clear commitment to their members’ goals and priorities. One way to achieve this is by embracing home energy upgrades—an area of rising demand that aligns with both financial and environmental interests.


Broader Credit Union Headwinds


Credit unions are currently navigating several significant challenges that impact their operations and financial health:


  1. Declining Income


In the first half of 2024, federally insured credit unions reported a net income of $15.7 billion, representing a 10% decrease from the $17.5 billion earned during the same period in 2023. This decline in profitability can be attributed to increased loan loss provisions and a competitive lending environment.


  1. Membership Growth Disparities


While the credit union industry experienced an overall membership increase of 3.3 million over the year, reaching 141 million members by mid-2024, this growth was uneven. Credit unions with assets exceeding $10 billion saw a 4.5% membership growth, whereas institutions with assets between $500 million and $1 billion experienced a 7.5% decline in membership. This disparity suggests that smaller credit unions are struggling to attract and retain members compared to their larger counterparts.


  1. Competition with Larger Banks and FinTechs


Credit unions face intense competition from larger financial institutions and fintech companies that offer advanced digital services and extensive product lines. This competitive pressure challenges credit unions to innovate and invest in technology to meet evolving member expectations.


  1. Regulatory Compliance and Resource Constraints


Navigating complex regulatory requirements demands significant resources, which can be particularly taxing for smaller credit unions with limited budgets and staff. Balancing compliance obligations with the need to invest in technology and member services remains an ongoing challenge.


Rise of Home Energy Upgrades


Driven by the increase of energy costs, the past decade has seen an explosion in interest around energy-efficient home improvements. From solar panels and heat pumps to better insulation and energy-efficient windows, homeowners are embracing these changes to reduce costs and their environmental footprint.


Optimized home energy efficiency upgrades can save homeowners thousands of dollars annually on utility bills. Additionally, government incentives like tax credits, rebates, and grants make these upgrades more accessible and bolster the ROI of each upgrade.


For Credit Unions, this presents an opportunity to align their financial products with their members' goals. By facilitating access to energy upgrades— through a combination of education, partnerships, and financing—they can position themselves as trusted allies in their members' journey.


How Credit Unions can Capitalize on Home Energy Upgrades


Home Energy Upgrade presents a singularly unique opportunity to leverage their local expertise to engage and attract new members as well as effectively cross-sell to existing members.


Attracting New Members


Offering home energy upgrade programs can be a powerful way for credit unions to attract new members, particularly when they address key challenges and simplify the process for homeowners.


  • Removing the Friction in FinancingOne of the biggest barriers to home energy upgrades is the upfront cost. Homeowners often hesitate to invest in projects like solar panel installations or energy-efficient windows because of the perceived complexity of securing financing. Credit unions can remove this friction by offering straightforward financing options designed specifically for energy upgrades. By creating seamless loan application processes with quick approvals, credit unions can position themselves as an accessible and supportive partner, eliminating a major hurdle for prospective members.


  • Guidance on Rebates and Tax CreditsNavigating local and federal incentives can be overwhelming for homeowners, especially when rebates, grants, and tax credits vary widely by region. Credit unions can play a vital role in simplifying this process. By providing members with up-to-date resources, credit unions can ensure members understand and maximize available benefits. 


  • Personalizing ROI for Maximum Energy SavingsMany homeowners are curious about the return on investment (ROI) for energy upgrades, but they need personalized insights to make informed decisions. Credit unions can offer tools or consultations that calculate individualized savings based on factors like home size, energy usage, and upgrade type. For example, showing a prospective member how upgrading their HVAC system could lower their utility bills by 30% or how solar panels could pay for themselves within seven years can make the decision more tangible. 


Strengthening Relationships with Existing Members


Home energy upgrades don't just attract new members—they also strengthen existing relationships by creating ongoing value and fostering trust. Credit Unions can leverage these programs to deepen connections with their members:


  • Addressing Member Pain Points

    Rising energy costs are a concern for many families. By providing solutions like affordable financing, members will see their cooperative or credit union as an advocate for their financial health.


  • Educating Members

    Education around energy efficiency helps members make informed decisions. Hosting webinars, sharing online resources, or creating a hotline for energy-related questions can position the organization as a trusted resource, not just a financial institution.


  • Building a Long-Term Relationship

    Home energy upgrades are often a multi-step process. Members who start with one program—say, a loan for solar panels—are likely to return for additional services. By offering a range of related products and programs, organizations can stay engaged with members over time.



How Homegrown Can Help


Consumer Tooling


Homegrown’s suite of digital products can align customers with your existing lending solutions by providing consumers with simple tools to understand the home level energy savings of specific energy upgrades and streamline the financing and tax credit process


Targeted Outreach


Analyze existing residential assets or targeted geographic areas to understand which members’ would benefit most from home energy upgrades. Homegrown can facilitate growth marketing campaigns to increase top of funnel marketing activities.


Measure Impact and Highlight Success Stories


Homegrown’s data platform allows Credit Union to seamlessly measure and celebrate financial savings and environmental impact of home energy loans. Sharing metrics, like how much energy expenses saved or how many tons of CO2 emissions were avoided, underscores the broader positive impact in the communities served.


For more on how Homegrown partners with Credit Unions, check out our solutions for lenders and member experience demo, or reach out to a member of our team (contact form).



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