Financing Energy Improvements on Utility Bills: Market Updates and Program Design Considerations for Policymakers and Administrators

Financing Energy Improvements on Utility Bills: Market Updates and Program Design Considerations for Policymakers and Administrators

TitleFinancing Energy Improvements on Utility Bills: Market Updates and Program Design Considerations for Policymakers and Administrators
Publication TypeReport
Year of Publication2014
AuthorsMark Zimring, Greg Leventis, Merrian Borgeson, Peter J Thompson, Ian M Hoffman, Charles A Goldman
Date Published05/2014
InstitutionState & Local Energy Efficiency Action Network (SEE Action) Financing Solutions Working Group
Keywordselectricity markets and policy group, energy analysis and environmental impacts department, energy efficiency
Notes

Financing Energy Improvements on Utility Bills: Market Updates and Key Program Design Considerations for Policymakers and Administrators provides an overview of the current state of on-bill programs and provides actionable insights on key program design considerations for on-bill lending programs. States and utilities are increasingly turning to on-bill financing to stretch their limited efficiency program dollars and to overcome a number of barriers to the uptake of energy improvements in residential and non-residential properties.

The report describes the historical evolution of on-bill programs and draws on data collected from 30 on-bill programs (including 13 in-depth case studies which are discussed in the technical appendices) to review and analyze key trends in on-bill programs, including their geographic reach, loan volumes, loan performance, and four important program design features.

  • How is the loan product structured?
    • Power disconnection and meter attachment
       
  • Where does loan funding come from?
    • Selecting sources of capital
       
  • Who is eligible?
    • Assessing customer creditworthiness, underwriting criteria
       
  • What can participants finance?
    • Eligible energy, and non-energy, improvements.

Financing Energy Improvements on Utility Bills: Market Updates and Key Program Design Considerations for Policymakers and Administrators is available as a full report below. The executive summary, a summary of the report in presentation form, and technical appendices (which include 13 in-depth case studies) are also available individually. 

To view the report and related documents, click here.