On-bill financing

On-bill financing is a mechanism where financing repayments are made monthly through an existing utility bill. In the on-bill financing business model, the utility does not only administer the program and collect payments via electricity bills, but it also finances the investments from its own capital. The mechanism worked well for small businesses that require simple, turnkey approaches to improve their energy efficiency and for private owners of residential buildings seeking financing for energy efficiency measures. This model generates annual cost savings for the building owner within the loan term and is often combined with grants to be cost-effective.