Topic: On-Bill Repayment

On-Bill Repayment Articles

Could Behavior Change Insights Drive Demand for Energy Efficiency?

Proven strategies for encouraging customers to use new technologies and seek financing are critical to the diffusion of energy efficiency solutions. Even with financing, energy efficiency programs face significant hurdles in driving customer demand, particularly in the small- and medium-scale markets. The recent Behavior, Energy & Climate Conference (BECC) 2014 offered insights on customer motivation.

On-Bill Financing Report Shows Strong Performance

On-bill financing can be a powerful tool for offering attractive energy efficiency options to a broad range of utility customers, according to a new report by State and Local Energy Efficiency Action Network (SEE Action). Utility customers often fail to invest in energy efficiency because of its upfront costs, the report said. On-bill financing allows customers to pay for energy efficiency measures gradually over time through charges included on their utility bills. This approach makes it much easier for some customers to access energy efficiency financing.

Solar and Energy Efficiency Securitization Emerge

Organizations are beginning to securitize solar and energy efficiency loans to allow greater levels of investment. Securitization involves pooling loans to create consolidated securities that investors can purchase. Recently, SolarCity securitized $54.4 million in loans for solar photovoltaic installations. Also, the Green Jobs – Green New York program has achieved a high bond rating for securitized energy efficiency loans.

California Decision May Catalyze Energy Efficiency Financing

A new market-shaping decision took place at the California Public Utilities Commission (CPUC) on Sept. 19. To increase the state's reliance on private capital for energy efficiency financing, the CPUC allocated $65.9 million for a suite of financing pilot programs for the state’s investor-owned utilities. California’s multipronged approach could lead to original solutions that other states might adopt.

On-Bill Repayment Shows Great Promise, But Significant Challenges Remain

On-bill repayment has received a great deal of attention during the last few years as a potential approach to expanding the reach of energy efficiency financing in the residential and commercial sectors. With on-bill repayment, utilities or third-party lenders cover the upfront cost of energy efficiency retrofits and customers pay back the loans through their utility bills.