Abstract
Many electric utilities offer their residential customers substantial financial incentives (low-interest loans or rebates) to install energy-efficient equipment and building retrofit measures (Stern, Berry, and Hirst 1985). For example, the Tennessee Valley Authority gave zero-interest loans to almost 500,000 households between 1977 and 1985; these loans average almost $1000 each for installation of retrofit measures (TVA 1985). Pacific Gas and Electric Company spent almost $100 million on administrative and debt service costs for its residential retrofit loan program, in which about 500,000 households participated (California PLC 1984).
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