Simple tips to Optimize On-Bill Financing to greatly help Illinois Building Owners spend money on Energy effectiveness
This post is written by Marcella Bondie Keenan, policy other at Elevate Energy.
Building owners can help to save cash by purchasing energy savings improvements. But when they can’t pay the upfront expenses associated with the improvements, they continue steadily to spend greater power bills and they are even less in a position to pay money for power effectiveness improvements later on.
On-bill funding (OBF) is just one device to greatly help owners bust out of the cycle. It gives a way to purchase power effectiveness through that loan that is paid back as being an installment that is monthly bills. But, current Illinois OBF programs exclude numerous energy clients as a result of limitations on loan size, building types, and effectiveness improvements, along with slim definitions of credit history. On this page, we identify a few possibilities to produce far better financing that is on-bill in purchase to simply help more building owners spend money on power effectiveness.
Problem: Too Minimal Funding
By legislation, OBF programs in Illinois are capped at $2.5 million per energy. This financing limit is simply too low to meet consumer need. In fact, two utilities already reached the cap and petitioned for an increased limit in order to accept more loans. Whilst the resources waited for approval, their OBF programs had been placed on hold.
Solution: The financing cap for utilities’ OBF programs must be raised. An increased limit will reduce the true wide range of times resources must petition for a rise, reducing the watch for building owners who would like to spend money on power effectiveness.