June 9, 2014
The State and Local Energy Efficiency Action Network (SEE Action), a state- and local-led effort facilitated by the U.S. Department of Energy and the U.S. Environmental Protection Agency to achieve all cost effective energy efficiency, recently published a new report that provides an overview of the current state of on-bill lending programs with actionable insights for consideration by state policymakers, utility regulators and program administrators. States and utilities are increasingly turning to on-bill financing to stretch their limited efficiency program dollars and encourage the uptake of energy improvements in residential and non-residential properties.
Entitled “Financing Energy Improvements on Utility Bills: Market Updates and Key Program Design Considerations for Policymakers and Administrators” and authored by Lawrence Berkeley National Laboratory, the report describes the historical evolution of on-bill programs and draws on data collected from 30 on-bill programs (13 in-depth case studies) to review and analyze key trends, including their geographic reach, loan volumes and loan performance.
The report also finds that on-bill programs have delivered more than $1.8 billion in loans, with 90 percent of those loans done through six organizations – Tennessee Valley Authority, Alliant Energy, Manitoba Hydro, United Illuminating (Connecticut), Connecticut Light and Power and National Grid.
Financing Energy Improvements on Utility Bills was developed by SEE Action’s Financing Solutions Working Group. The Energy Department’s Office of Energy Efficiency and Renewable Energy (EERE) accelerates development and facilitates deployment of energy efficiency and renewable energy technologies and market-based solutions that strengthen U.S. energy security, environmental quality, and economic vitality. For more, visit SEE Action’s website.