On-Bill Repayment Makes Energy Efficiency Projects Viable
The Environmental Defense Fund is championing on-bill repayment of energy efficiency upgrades. While it doesn’t seem like there’s a direct connection between the EDF and on-bill payments, Kate Zerrenner, an energy efficiency specialist with the EDF says, “It is something we have taken ownership of. We’re working on on-bill repayment in several states – Texas, Calif., Ohio, NC. It is a tool to enable more efficiency and demand-side resources to be accessed by people and will create a market for energy efficiency/renewables/demand-side resources that is attractive for investors.”
On-bill repayment offers an opportunity for building owners to finance energy efficiency upgrades or renewable electricity generation projects through loans from third-party investors, according to a blog posting by Zerrenner. The investors work with the customer’s utility to include the loan payments on the customer’s utility bill.
Several utilities nationwide use on-bill finance programs to help customers pay for energy efficiency upgrades. But the twist here is that the money comes from third parties, such as banks, to create a new market. According to EDF, the benefits of third-party on-bill repayment include:
- Flexibility for the building owner to design customized solutions;
- Job growth from more energy efficiency projects;
- Potential billions in new private sector investments;
- Savings to ratepayers and states from the avoidance of costly new power plants; and
- Flexibility for contractors and vendors.
The EDF wants Texas to follow in California’s lead where a new on-bill repayment feature will allow commercial property owners to pay for energy upgrades through regular installments on their utility bill.
- Facilities & Maintenance Management Best Practices
- Environmental Leader Technology Reviews
- Guide to Energy, Carbon and Environmental Software
- 2013 Insider Knowledge
- Q4 2013 Sustainability Trends - The Logistics, Carbon and Business Data Book
- How "Fixed" is the Fixed Price Product?
- The Impact of a Changing Workforce on Facilities Management
- How to Automate the Collection & Delivery of Utility Billing Data
- EHS Managers: The Evolution from Necessary Evil to Vital Leaders
- 9 Ways to Reduce Energy Costs
- Smart Building Technology: The Key to Comprehensive Building Performance
- What Energy Managers Need to know about Procuring Natural Gas: Guidance for 2014 Natural Gas Contracts
- Energy Optimization from the Boiler Room to the Board Room
- Your Roadmap for Energy Management: First Stop – Myths & Realities of Energy Purchasing
- Control the Balance of Power: The Future of Intelligent Energy Systems