November 21, 2013 | Next Steps: Financing solar for your business | Victor Rojas: On-bill repayment
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November 21, 2013 | Next Steps: Financing solar for your business | Victor Rojas: On-bill repayment

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For many businesses and property owners, the high upfront cost of solar photovoltaic systems remains the single largest barrier to adoption. The solution? Solar financing. Fresh Energy’s solar ...

For many businesses and property owners, the high upfront cost of solar photovoltaic systems remains the single largest barrier to adoption. The solution? Solar financing. Fresh Energy’s solar financing event, the final installment of a three-part Solar Opportunities Series, will introduce participants to the range of current and emerging solar-financing options available in Minnesota. Learn more at fresh-energy.org/solarseries.

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November 21, 2013 | Next Steps: Financing solar for your business | Victor Rojas: On-bill repayment November 21, 2013 | Next Steps: Financing solar for your business | Victor Rojas: On-bill repayment Presentation Transcript

  • On-Bill Repayment: NEXT STEPS: Financing Solar For Your Business November 21, 2013
  • About EDF Environmental Defense Fund (EDF) is an international non-profit that crafts marketbased policy solutions that support private sector market engagement addressing climate change.
  • Why OBR? Financing Impediment: Credit obstacles, the lack of willing lenders and, thus, the lack of cheap capital available to fund or finance clean energy projects. Solution: A tool that can address the credit issue, expand the universe of willing lenders and thus accelerate the flow of cheap capital into essential energy efficiency and renewable (distributed) energy initiatives.
  • On-Bill Repayment • An open-source platform for clean energy investment. • 3rd party private capital – For qualifying energy efficiency and distributed generation projects • Repayment obligation becomes tariff on meter – Repaid via utility bill – Stays with meter through changes in occupancy/ownership – Longer repayment periods • Bill neutrality – Expected savings must be greater than financing cost – Verified by 3rd party certifier Tying the obligation to the meter and requiring repayment on the monthly utility bill lower credit risk for lender
  • How OBR Works
  • Components of OBR • OBR is a platform, not a prescribed program • Master Servicer acts as clearing house – Reduces the administrative burden on utilities • Scale and standardization can reduce costs – Recommend uniform statewide programs • Utilities should be adequately compensated for services – Fees from lenders/investors – Credit for Energy Efficiency Standards, National Ambient Air Quality Standards
  • Benefits of OBR 1. Participation is voluntary 2. No public funding required 3. Creates jobs and economic activity 4. Saves customers money 5. Open source scalable platform 6. Accelerates capital flows into clean energy investments 7. Avoids the cost of new generation capacity and reduces use of higher cost generation 8. Helps diminish the need for solar subsidies
  • OBR means Flexibility A well-designed OBR program maximizes Flexibility with a range of eligible property types, transaction structures, and projects Property Types • • • • • • Single Family Multi Family Small Business Commercial Industrial Public Structures • Loans • Leases • Energy Service Agreements (ESAs) • PPAs Projects • Retrofits • Renewables / CHP • Energy Star Appliances
  • Where we are now • Hawaii’s residential and commercial OBR platform – Expected to be operational Q1 2014 • Connecticut’s residential OBR platform – Expected to be operational Q2 2014 • The California PUC has ordered OBR to become available for commercial properties by July 2014. – However, lack of automatic transferability in the CPUC’s implementation of OBR may limit investor interest to publically owned properties • EDF is working with stakeholders in New Jersey, New York, Ohio, Illinois and other states to pursue programs in 2014
  • Thank You Victor Rojas vrojas@edf.org Brad Copithorne bcopithorne@edf.org Scott Hofmeister shofmeister@edf.org Rachel Neil rneil@edf.org