Brief #3: Paying for Energy Efficiency Upgrades through Utility Bills

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. This brief describes two types of on-bill programs and provides a survey of experiences with these programs to date, as well as a discussion on their various features, pros and cons and ideal applications.

In many cases, the states can facilitate implementation of on-bill programs 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 2009 American Recovery and Reinvestment Act also provides opportunities to capitalize on-bill financing through programs such as State Energy Program and Energy Efficiency and Conservation Grants.

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.

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