Full Title: On-Bill Financing: Expanding Access to Energy Efficiency, Clean Energy Adoption, and Electrification for Everyone
Author(s): Miguel Yanez-Barnuevo
Publisher(s): Environmental and Energy Study Institute (EESI)
Publication Date: February 12, 2021
Full Text: Download Resource
On-bill financing programs provide an opportunity for rural communities to finance whole-house energy efficiency retrofits and clean energy upgrades with no upfront payments. Rural Americans pay on average 40 percent more for energy than their urban counterparts. But the upfront costs of many energy efficiency projects put long-term, cost-effective savings out of reach of those with lower incomes in rural, disadvantaged communities. When designed appropriately, on-bill financing programs provide financing to everyone regardless of income, or credit. On-bill financing programs require no credit checks—as program eligibility is based on utility bill payment history—and tie the on-bill obligation to the utility meter; thus, allowing for the monthly charge to transfer to the next owner or renter.
On-bill programs increase energy affordability, expand access to capital for clean energy upgrades, and put underserved communities towards a path of greater energy equity in rural communities, which for a decarbonized, clean energy future. This paper will provide an overview of existing programs, the RESP opportunity, and current impact data.