City Energy Project: California Investor-Owned Utility On-Bill Financing Program

A utility on-bill repayment program is a program in which a lender provides the up-front funds needed for an eligible energy efficiency project. In 2007, the California Public Utility Commission (CPUC) directed three investor Owned Utilities (IOUs) to develop and manage zero interest On-Bill Financing programs to target non-residential customers. The purpose of the program was to drive participation by eliminating the up-front cost barrier and make repayment convenient for customers. This case study describes on-bill financing programs managed by California investor-owned utilities.

This resource is part of the City Energy Project Resource Library. Launched in 2019, the library is the culmination of 6+ years of work on the ground in 20 U.S. cities to reduce energy use in large buildings. The City Energy Project is a joint project of IMT and the Natural Resources Defense Council (NRDC). For more information, visit www.cityenergyproject.org.