Financing your energy efficient
lighting projects
Upgrading to more efficient equipment has its rewards; by reducing energy consumption, you can create a better operating environment as well as shrink the carbon footprint. However, quality lighting upgrades require a lot of capital to achieve the energy efficiency targets, and that can strain a business’s finances. Although conventional loans are a viable option, the cumulative interest extends the payback time and outweighs the benefits. On-Bill Financing alleviates the budget burdens off businesses and enables quality, energy-efficient lighting upgrades.
What is On-Bill Financing?
On-Bill Financing (OBF) is a low-to-zero interest finance option where the utility funds lighting upgrade measures that meet the energy efficiency requirements and are repaid through utility bills. The streamlined payment structure and requisites make On-Bill Financing an ideal option for businesses trying to upgrade their lighting systems cost-effectively. However, the requirements can change for different utilities. Here are some of the common requirements of an OBF program:
Customers must have a
good standing payment
history
Customers must satisfy the
eligibility requirements of the
program
The upgrade must meet the
required energy efficiency
standards
Mandatory pre-inspection by
the utility before
commencing the project
OBF is deducted from the
total project cost for projects
that qualify for incentives
OBF funds are subject to
maximum and minimum
capping
Equipment must be installed
by an authorized trade
professional or contractor
Post-install inspection to
verify the equipment against
the proposal
Zero-investment lighting upgrades
with On-Bill Financing
The primary concern in switching over to energy-saving lighting systems is the upfront capital expense. Though LED fixtures provide a quick Return on Investment after their installation, these upgrades can strain your cash flow significantly. However, it is possible to reduce this cost with the help of available financing programs. On-Bill Financing (OBF) Programs typically provide low-to-zero interest on the loans provided; but can it fund the complete project requirement? Our experts have successfully implemented lighting upgrades with zero investments by maximizing the incentives and providing specifications that meet the customer as well as the program requirements. Incentives are improved by analyzing all replacement strategies; in some cases, retrofit kits provide the best rebates, while in others, a lamp replacement would be more viable. Most OBF programs are also capped based on the type of service and yearly budget. Hence the cost after deducting rebates need to be within these limitations.
This strategy has helped our customers take care of their lighting needs, without worrying about the upgrade costs and at the same time, meeting their energy-saving targets.
Find the best financing option
available for your project
With more than 200 major utilities operating across the US, OBF programs are available for most lighting and lighting control upgrades depending on the type of proposal. The eligibility and approval of loan amounts may vary based on the utility and type of project. Some of the main criteria include the business’s history with the utility provider, minimum and maximum loan caps, minimum annual energy savings, rebate eligibility, payback, and whether it is a new construction, retrofit, or a major renovation project. Having worked extensively on this process with major utilities all over the US, we can help ensure that your application gets through.
Apart from meeting eligibility, the grants are provided on a first-come, first-served basis until the program funds are depleted for the fiscal year. As a result, the quick turn-around of proposals is just as important as meeting the various requirements.
Downloads
On-Bill Financing.pdf