Lessons learned from the field: key strategies for implementing successful on-the-bill financing programs

Abstract

On-the-bill financing programs have generated interest among utility program designers as a way to reduce the upfront cost associated with installing energy efficiency measures. This paper highlights the key lessons learned from program evaluations completed for two diverse programs: Midwest Energy and Hawaiian Electric Company. This paper documents the ways in which these utilities designed and implemented these innovative programs designed to promote installations of energy efficiency measures in the residential market. These programs will also describe the internal challenges faced by these utilities in developing the internal systems and resources necessary to manage the applications, billing records, and documentation required to manage these program activities. This paper also compares the approaches used by Midwest Energy and Hawaiian Electric based on two recently completed process evaluations. Midwest Energy debuted its How$mart Program in 2007 to provide renters and landlords a mechanism to pay for a variety of energy efficiency improvements. Full program implementation began in 2008. Hawaii Electric developed the SolarSaver Pilot Program in 2007 to encourage installations of solar water heaters and has been operational for 2 years. In both programs, the utility provides the upfront capital as a way to encourage the investment in these energy efficiency improvements. This paper compares the results from both programs based on their second year of program operations. This paper will identify some “best practices” to consider for this type of program as well as learn more about benefits provided by these unique on-the-bill-financing programs.