{"id":3412,"date":"2012-12-03T16:45:55","date_gmt":"2012-12-03T16:45:55","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=3412"},"modified":"2014-06-19T13:13:48","modified_gmt":"2014-06-19T18:13:48","slug":"on-bill-repayment-a-way-to-eliminate-the-upfront-costs-for-energy-efficiency-projects","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2012\/12\/03\/on-bill-repayment-a-way-to-eliminate-the-upfront-costs-for-energy-efficiency-projects\/","title":{"rendered":"On-Bill Repayment: A Way To Eliminate The Upfront Costs For Energy Efficiency Projects"},"content":{"rendered":"

\"\"<\/a>When a state is facing electric resource shortages, like Texas is, it\u2019s just common sense to explore all the ways to make our electric use more efficient. We know efficiency makes sense \u2013 in terms of grid reliability, lower emissions, and reduced costs to ratepayers. But there is a barrier to some ratepayers in implementing more energy efficiency: upfront costs. Several options currently exist to finance efficiency, such as home equity loans and incentive programs through utilities. But what about creating a market to allow private investors to invest in the market by offering lower rates for utility customers by ensuring some security through repayment on the utility bill? That\u2019s what on-bill repayment aims to do.<\/p>\n

On-bill repayment (OBR)<\/a> offers an opportunity for home and building owners to finance energy efficiency and renewable electricity generation projects through cost-saving loans from third-party investors. The loans are repaid through customer\u2019s utility bills.\u00a0 The money comes from private sector lenders at no cost to ratepayers or taxpayers.\u00a0 OBR also allows for longer term loans with lower interest rates.<\/p>\n

The general concept of OBR is not new. Several utilities around the country have instituted on-bill finance programs. However, there is a key difference. On-bill finance programs use utility money to finance the program, thus creating an additional cost for the ratepayers. On-bill repayment would use new money from third parties, such as banks, to create a new market that is secure, cost effective, and enables more bang for the buck in terms of what the ratepayer receives.<\/p>\n

OBR is a flexible program that works for a wide variety of properties and vendor business models.\u00a0 In some programs, contractors are told what solutions can be offered to each customer.\u00a0 OBR, on the other hand, allows each contractor or vendor significant latitude to design solutions that meet the needs for their customers.\u00a0 This could include everything from insulation upgrades for residential customers or lighting upgrades for restaurants all the way to deep retrofits of commercial or industrial properties.\u00a0 All of these would be delivered by the private sector and would be completely voluntary to each property owner.<\/p>\n

Benefits of OBR include:<\/p>\n