EE Finances » Financing Energy Efficiency » Transnational EE financing strategy » Assessment of existing financing models and their deployment » Assessment of On-bill Financing

Assessment of On-bill Financing

Features favourable for municipalities

Features NOT favourable for municipalities

  • On-bill financing and repayment programmes offer some of the most elegant solutions to energy financing as the savings are on the same bill as the repayment and are paired directly with repayment.

  • Enjoys relatively simple implementation

  • Convenient form of investment repayment financing investments from savings generated

 

  • If the loan is not transferable to the next owner of the building, municipality must pay off entire loan upon sale of property, which could result in not all of the energy savings being realized.

  • Utilities are often reluctant to take on role of financing entity or changing the billing system

  • Face lack of experience as the model is rare in Europe

  • When universal service prices are quite favorable for householders, then, residential consumers enjoy decreased energy and public utility prices. As this method provides financial benefits on one hand for the consumers by the reduced energy costs, while on the other hand it doesn’t motivate the households to better control and cut back their electricity consumption, or support more effective generation or transfer technologies.

Types of EE projects or EE services suitable to be financed this way

  • Projects in the building sector where the savings are on the same bill as the repayment

  • investments that include charges on a utility bill for commercial, industrial or residential owners and tenants

  • Low-energy renovation of schools or kindergartens, e-mobility projects etc.



Recommendations for deployment

      • As with other specialized energy efficiency financing programmes, the availability of on-bill financing is dependent on where you live. The good news is many utilities want to encourage their customers to be more energy efficient and see on-bill financing programmes as an effective way to do it. In some cases, the state or local government in your area might also provide support – financial or otherwise – to pave the way for on-bill financing.

  • The best way to find out whether your utility offers an on-bill financing or on-bill repayment programme for energy efficiency is to contact them directly. Some utilities offer programmes exclusively for commercial or residential properties, while others have broader eligibility criteria.



Examples