Financing

Financing programs help businesses and consumers afford the up-front cost of energy efficiency improvements.

Reducing the Up-Front Cost

Although energy efficiency can offer significant savings on energy bills, the up-front costs of buying new equipment or renovating buildings significantly reduce widespread adoption of most efficiency measures. Financing programs that assist businesses and consumers in meeting these initial costs can help overcome this barrier and allow greater implementation of energy efficiency projects.

Financing in All Its Forms

Financing mechanisms for energy efficiency take a variety of forms and come from a variety of sources; a number of different financing models exist at the state, local, utility, and financial institution levels. These can vary from simple loan programs to property assessment-based financing to altering mortgages so as to reflect energy costs – and more. Additionally, government entities and utilities can support financing programs with loan guarantees and other forms of credit support. Related to financing, tax incentives can also reduce the up-front costs of energy efficiency upgrades and efficient construction.