Inclusive financing programs, structured using opt-in tariffs, allow more Americans to access cost-saving energy efficiency and renewable energy generation improvements -- which are often out of reach due to their high upfront costs or other barriers.
Under the framework of a financing program, the utility covers the cost of eligible improvements. Then, it recovers its investment by collecting regular payments on participating customers’ monthly bills.
Energy savings from the upgrades immediately lower customers’ bills, even during the payback period. Inclusive financing programs are open to anyone, including renters and those with low credit scores, so they are key tools in shaping a more affordable, equitable clean energy economy.
Here, you’ll find all of ILSR’s inclusive financing work: a comprehensive report, articles, webinars, an explainer video, and a podcast interview with one of the implementing utilities.
Inclusive Financing Research
Report: Inclusive Financing for Efficiency and Renewable Energy
Written by John Farrell
November 11th, 2016
Energy efficiency and renewables represent the most promising pathway to lower energy costs for individual consumers and utilities. But limited access hinders progress. Utilities can knock down major barriers to energy efficiency and renewables by allowing customers to make site-specific investments and recovering utility costs through an opt-in tariff.READ THE REPORT
Multimedia Resources
Infographic: How Tariff-Based Inclusive Financing Works
Written by Nick Stumo-Langer
November 20th, 2016
See our full energy research hot spot to explore Inclusive Financing policies.EXPLORE...
A Kansas Electric Cooperative Offers Energy Savings with $0 Down - Episode 32 of Local Energy Rules Podcast
Written by Matt Grimley
April 6th, 2016
On-bill financing is not new. The Tennessee Valley Authority has offered it for years. More recently, numerous municipal utilities and electric cooperatives have created programs. But Midwest Energy, on the prairies of western Kansas, might have the best track record. Brian Dreiling, manager of energy services at Midwest Energy, shared his utility’s story with Local Energy Rules this week, explaining the on-bill program, what makes it successful, and how an investment in the member-owner’s home is an investment in the utility.EXPLORE...
External Resources
The Southeast Energy Efficiency Alliance (SEEA) and Clean Energy Works have put together an amazing inclusive financing webinar series:
- Introduction to Inclusive Financing for Energy Efficiency
- Update on Inclusive Financing Programs in the South
- Consumer Protections in Inclusive Financing for Energy Efficiency
- Due Diligence in Inclusive Financing for Energy Efficiency
- Program Operator Models for Inclusive Financing for Energy Efficiency
- Establishing a Reserve Fund for Inclusive Financing for Energy Efficiency
- Sourcing Capital for Inclusive Financing for Energy Efficiency
- Workforce Development for Inclusive Financing for Energy Efficiency
Follow The Rules
Model Inclusive Financing Resolution
(Passed by Mitchell County, North Carolina in March 2017)
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Report: Inclusive Financing for Efficiency and Renewable Energy
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On-bill financing is not new. The Tennessee Valley Authority has offered it for years. More recently, numerous municipal utilities and electric cooperatives have created programs. But Midwest Energy, on the prairies of western Kansas, might have the best track record. Brian Dreiling, manager of energy services at Midwest Energy, shared his utility’s story with Local Energy Rules this week, explaining the on-bill program, what makes it successful, and how an investment in the member-owner’s home is an investment in the utility.READ MORE