Policy

6 Energy Efficiency Financing Options You Should Know

Energy efficiency improvements can be expensive and burdensome for residential homeowners, renters and building owners. Luckily, there are an increasing number of financial options to help cover the up-front costs of efficiency upgrades. Below, we lay out several financing options to make our homes and workplaces more energy efficient.  

1. On-Bill Financing

On-bill financing is an umbrella term for a financing program where a charge is added to a customer’s energy bill to repay a loan from a utility for energy efficiency upgrades. The utility acts as the lender and incurs the upfront costs of the improvements.

How It Works

Millions of Americans Struggle to Meet their Energy Needs – Efficiency Can Help

Nationwide, over 16 million households struggle to meet their heating, cooling and other energy needs, but energy efficiency is increasingly recognized as a potential solution to this problem. In 2018, Illinois, Michigan and Missouri began holding income qualified energy efficiency stakeholder collaboratives to strengthen program design and delivery for these communities. Throughout the Midwest, decision makers across the political spectrum recognize the value of low-income energy efficiency in helping families afford their basic energy needs.

EE First: The Right Way to Get to Net Zero Energy

This year's Midwest Energy Solutions Conference (MES) incorporated interactive workshops into its agenda for the first time ever, and one of the three workshops focused on Net Zero Energy (NZE) in the Midwest. MEEA staff wanted attendees to consider what Net Zero Energy means for energy efficiency (EE) in the Midwest specifically. (For the purposes of the workshop, “NZE” was referring to any building, development or community that does not use more energy than it produces. See DOE’s NZE definitions).

Policy Summit Preview: Good EE Policy for Economic Growth

Energy efficiency investments and their resulting energy savings drive financial benefits throughout the Midwest region. To spread these benefits, on February 7, 2018, MEEA will host the "Good EE Policy for Economic Growth Summit" in Chicago. This free summit, sponsored by E4theFuture and preceding the 2018 Midwest Energy Solutions Conference, will focus on the ways energy efficiency advocates develop sound policy to drive regional economic and job growth.

MEEA's Guide to Utility Consumer Advocates in the Midwest

The average Midwesterner pays 65% more for electricity than they did at the turn of the millennium. Saving energy is a key way to help lower customer bills even with rising rates. Utility Consumer Advocates (UCAs) represent residential customers before regulators and legislatures, and they use their expertise to help ensure ratepayer dollars are spent prudently and cost-effectively.

Chicago Proposes 4-Star Rating System for Benchmarking

Improving energy performance in buildings is a key strategy for the City of Chicago, which has committed to upholding the goals of the Paris Climate Agreement. This includes a 26-28% reduction in greenhouse gas emissions by 2025; the city is currently 40% of the way to meeting that goal. Because the energy used in buildings accounts for over 70% of the city’s current greenhouse gas emissions, reducing building energy use is essential to meeting this goal.

MEEA’s Guide to Stakeholder Collaboration

As a membership organization that includes utilities, businesses, advocates and government agencies, MEEA knows the power of collaboration. Time and again, we’ve seen first-hand that when diverse groups sit down at the table together, we’re able to harness our collective expertise and experience to find solutions that work for everyone.

And we’re not the only ones who think collaboration is a powerful tool. Several states in the Midwest currently convene collaborative groups to promote energy efficiency.