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Several states are experimenting with an "on-bill" financing program that aims to spur investment in energy efficiency for homes and businesses, including owners who lack capital. The "on-bill financing" program, which kicked off in January, allows homeowners to pay for efficiency upgrades using money saved by reduced energy use, which they can measure on each utility bill. The state-backed loans, which carry an interest rate of less than 3 percent, require no upfront costs, and the monthly payments are designed to be no larger than the projected savings on energy. At least nine states in recent years have passed legislation supporting or requiring adoption of such programs.
ACEEE - Research Report