On-Bill Repayment is a platform that allows third party private capital to finance qualifying energy efficiency and renewable energy projects for businesses. Repayment of the financing is done through utility bills, reducing credit risk for lenders. It works by having the repayment obligation tied to the meter and property, remaining in place even if ownership changes. States like Hawaii and Connecticut have begun implementing On-Bill Repayment platforms that are expected to launch in early-mid 2014. The platform is meant to increase access to capital for clean energy projects and accelerate their adoption through better financing options.

1. On-Bill Repayment:
NEXT STEPS: Financing Solar For Your Business
November 21, 2013

2. 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.

3. 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.

4. 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

5. How OBR Works

6. 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

7. 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

8. OBR means Flexibility
A well-designed OBR program maximizes
Flexibility with a range of eligible property types,
transaction structures, and projects
Property Types
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•
•
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•
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Single Family
Multi Family
Small Business
Commercial
Industrial
Public
Structures
• Loans
• Leases
• Energy Service
Agreements
(ESAs)
• PPAs
Projects
• Retrofits
• Renewables /
CHP
• Energy Star
Appliances

9. 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

10. Thank You
Victor Rojas
vrojas@edf.org
Brad Copithorne
bcopithorne@edf.org
Scott Hofmeister
shofmeister@edf.org
Rachel Neil
rneil@edf.org