Residential EE Financing Key Elements of Program Design

“Residential EE Financing: Key Elements of Program Design” 1 Energy Futures Group on behalf of Connecticut Fund for the Environment & Environment Northeast Compared seven residential financing products: Mass Save HEAT Loan Clean Energy Works Oregon NYSERDA Home Performance with ENERGY STAR Keystone HELP Energize Delaware So. Cal Gas Center for Energy and Environment (MN) Available on ENE website (http: //www. env-ne. org) under “Publications”

Framework: Residential Financing 2 1. Link Financing to EE Goals and Programs 2. Choose an Administrator with EE Targets 3. Measure eligibility; going deeper; whole-house Evaluating success (savings, not loan volume) Otherwise, loan volume may become singular goal Can still work with private capital partners Use Program Funds Wisely IRBs/credit enhancement in some cases In other cases, consider higher rebates

Framework: Res Financing (Cont’d) 3 4. Integrate Rebates and Financing 5. Promote Upgrades, not Loans 6. Reduce customer burden of seeking financing and rebates separately Use financing as one tool to “get to yes” Emphasize overall EE program “brand name” Tie Intake Process to EE Goals Is the first step a whole-house energy audit? Or is it a loan application/pre-approval?

Framework: Res Financing (Cont’d) 4 Provide Ample Contractor Support 7. Example: Keystone HELP Offer Technical Assistance to Customers 8. Examples: CEWO; Neighbor. Works of W. VT Focus on Quality Assurance 9. Third-party inspections (all or random %) Alignment between predictions and results Evaluation: Savings, Not Just Volume 10. EE programs have EM&V budgets; focused on net savings achieved

5 Contact Info Chris Kramer Energy Futures Group ckramer@energyfuturesgroup. com Phone: 802 -482 -5001 Cell: 202 -351 -9154 Link: http: //www. energyfuturesgroup. com/