Alliance to Save Energy Releases State Policy Brief on On-bill Financing Programs | Alliance to Save Energy

Alliance to Save Energy Releases State Policy Brief on On-bill Financing Programs

Release Date: Tuesday, March 31, 2009

Washington, D.C., March 24, 2009 – The Alliance to Save Energy is pleased to release the third in its series of policy briefs on energy efficiency at the state level. The new brief, entitled "Paying for Energy Efficiency Upgrades through Utility Bills," focuses on on-bill financing programs which allow the customers to pay for energy efficiency upgrades through a charge on their monthly utility bills.

“The on-bill loan programs and tariff-based systems are still uncommon in the country today,” said Alliance President Kateri Callahan. “This policy brief can broadly disseminate the lessons learned and program potential for additional states.”

Providing a survey of experiences with these programs to date, as well as a discussion on their various features, pros and cons and ideal applications, this brief is especially timely for states which are considering financing such programs with the funds from the 2009 American Recovery and Reinvestment Act. This act provides opportunities to capitalize on-bill financing through programs such as State Energy Program and Energy Efficiency and Conservation Grants.

In addition to allocating stimulus funds to these programs, the states can facilitate their implementation by encouraging adoption of rate structures that remove disincentives to investing in energy efficiency, and by providing capital for these programs through public benefit or other funds.

The brief is the third in a series entitled Energy Efficiency State Policies, developed by the Alliance together with Matthew Brown, a partner with ConoverBrown LLC. It provides state officials and those who track and analyze state legislation with a concise review of various states’ experiences with energy efficiency programs, and evaluations of the policy options available to promote energy efficiency.