Philip Henderson, Senior Financial Policy Specialist, Washington, DC

On-bill financing is a very promising way for utilities to help their customers invest in energy efficiency improvements, such as adding insulation, installing new lighting, or upgrading to a high-efficiency air conditioner.  It is simply a loan to a utility customer – it could be a commercial building owner, a homeowner, or even a school – that is used to make improvements that will reduce energy waste, with the regular monthly loan payment collected on the utility bill. 

Efficiency improvements funded by an On Bill loan can reduce utility bills, improve the value of the property, create new jobs, and deliver efficiency to the utility, which works to lower energy bills for everyone and reduce pollution.  Because efficiency delivers so much value, many cities, states, and utilities are seeking innovative ways to help customers make these investments. 

Click here to read a new NRDC Issue Brief --  On Bill Programs: Key Considerations for Program Design.   It explains why on-bill programs are viewed as very promising and describes both benefits and challenges utilities (or other program administrators) should consider when exploring an on-bill program.

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