On-Bill Financing: Cost-Free Energy Efficiency Improvements


MARCH, 2016

Although there is a strong business case for using energy-efficient technology, a significant barrier to its adoption is the initial cost of new appliances, HVAC systems, furnaces, insulation, lighting or weatherization. On-bill financing allows customers to overcome cost barriers by providing financing for these upgrades, which are then paid over time via charges on their utility bill.

On-bill financing programs may require “bill-neutrality,” meaning energy-efficiency efficiency savings on monthly bills must be greater or equal to a customer’s loan payments. This approach provides customers with efficiency upgrades at no added cost, since the expected energy savings from efficiency improvements are greater than the on-bill finance costs. Default rates have been found to be lower than with other loans, making them lower risk for lenders—customers may be more likely to make payments as they appear as part of their gas or electricity bill. Policymakers have encouraged on-bill financing programs in a number of states by authorizing the use of public benefits funds for these programs, creating pilot programs or requiring utilities to adopt an on-bill financing program.”

Read more of what NCSL has to say about this at: http://www.ncsl.org/research/energy/on-bill-financing-cost-free-energy-efficiency-improvements.aspx

Want new blog posts before they get published?
Subscribe to our awesome blog.

Blog email

3 + 6 =

Mike Brady: The Energy Efficiency Genius

12MARCH, 2019I love the Brady Bunch and have many episodes committed to memory, but it was only recently after trying to explain to my kids how much energy we use in the house, that I truly understood his genius. In the episode “Sorry, Right Number,” Mike, who was...

Are You Smarter Than a High Schooler?

Are You Smarter Than a High Schooler?

8 JANUARY, 2019 If you were like me, then you thought you knew everything when you were in high school. How the world should be run. An expert on whatever latest thing you learned about in school, and so on. However, did you know that much about energy? Let’s be...

What Pink Floyd Taught Me About Renewables and Energy Efficiency

What Pink Floyd Taught Me About Renewables and Energy Efficiency

4 JANUARY, 2019 I was at an energy conference in 2015, and a speaker, whose name I have long forgotten, uttered a comment that has stuck with me to this day. It was one of those comments that immediately sent your brain into a frenzy making connections to other...