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| Utility-Based Programs Utility Company Financing Programs Utilities are one of the most logical financing sources for energy efficiency and alternative power sources. Unlike individual ratepayers, utilities routinely make investments with payback periods lasting decades. Utilities also have access to large amounts of capital. Many utilities spend millions of dollars annually to purchase their power supply. Spending that same capital on efficiency is like buying a source of power, as source that is less expensive than building a new power plant. The most progressive utility efficiency programs have budgets equaling four to five percent of their cost of power. Utility financing programs come in a variety of forms: rebates, zero percent or low-interest loans, equipment leasing, low-income energy assistance, and giveaways. The following are examples of how a few specific utilities in the United States have provided financial assistance for energy efficiency programs. ZILCH: Zero Interest Loans for Conservation Help — The Fort Collins, Colorado, municipal utility makes zero-interest home energy improvements loans of up to $2,000 to residents. ZILCH loans have financed the installation of insulation, solar water heaters, and other measures. The loan program approves financing for home energy improvements recommended by audits using "Energy Score," the city's Home Energy Rating System (HERS). Program administrators say the program's success lies in linking financing with a consistent means for assessing what improvements to make. The city also uses Energy Score ratings to help residents secure energy efficient mortgages (EEMs). Solar Municipal Utilities — The Santa Clara, California, municipal utility runs a lease program that designs, installs and maintains solar water heaters. In a year's time, a solar water heater can cut a family of four's power bill by $300 or more. So far, over 260 residential units and a seventy-unit motel have installed the heaters. Under the program, the city pays the upfront cost of the heater, and is eventually repaid by the property owner. Rebates For Efficiency — Southern California Edison offers a number of rebates for both residential and small to medium sized business owners. Rebates are offered for the following technologies: lighting, air conditioning, food service-related, irrigation and motor systems, and other appliances. Low-Income, Disabled, and Senior Energy Assistance Programs — Pacific Gas and Electric (PG&E) provides a number of energy-related financial assistance programs to low-income families, the disabled, and senior citizens. Programs include CARE, REACH, LIHEAP, medical baseline and life-support, and balanced payment plans. |