Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
1SoutheastEnergyEfficiencyAlliance|www.seealliance.org
WEBINARSERIESINTRODUCTION TO INCLUSIVE FINANCING FOR ENERGY EFFICIENCY Learning Circle Series
2SoutheastEnergyEfficiencyAlliance|www.seealliance.org
WorkAreas:
BuiltEnvironment
State,Local&U=lityPolicy
EnergyEquity
Innova=veFinance
MissionTheSoutheastEnergyEfficiencyAlliance(SEEA)workstoensurepeopleintheSoutheasthavetheknowledge,resources,andopportuni?estoop?mizeenergyuse.
VisionEnergyefficiencyisaprimarydriverofaprosperous,healthyandsustainableSoutheast.
SEEA Serves the Southeast
SEEA’sLeadershipintheSoutheast
• 2014ArkansasEnergyOfficeStatewideFinancingOp?onsStudy
• 2014NorthCarolinaOn-BillWorkingGroup
• 2015SEEAwebinarwithCEOofRoanokeElectric
• 2015SEEAconferencein2015:TheRoanokeCenter
• 2016SEEAconferencein2016:OuachitaElectric
• 2017SEEALearningCircleforInclusiveFinancing
Solu?onsthatworksforanyone–regardlessofincome,creditscore,orrenterstatus–arebeVerforeveryone.
LearningCircleSeries
Asinterestgrows,youareingoodcompany:
• U?litymanagers
• Consumeradvocates
• U?litycommissionstaff
• Stateenergyoffices
• Community-basedorganizers
• Solu?onproviders
LearningCircleSeries
HolmesHummel,PhDPrincipal,CleanEnergyWorks
LearningCircleSeries
ü FoundedCleanEnergyWorkstomobilizemoreinvestmentinthecleanenergyeconomy,opentoallthroughinclusivefinancing
ü FormerSeniorPolicyAdvisorintheDepartmentofEnergy’spolicyoffice(2009-2013)
ü WinnerofFiReAwardattheBloomberg“FutureofEnergySummit”forchampioningPAYS®asahigh-impactinnova?oninfinance
ü Advisortou?li?esonbusinessplandevelopmentforinvestmentsincosteffec?vedistributedenergysolu?ons
Introduc=ontoInclusiveFinancingforEnergyEfficiency
• Makingthecaseformoreinclusivesolu?ons
• Overviewoftariffedon-billprograms
• Comparisontootheron-billfinancingapproaches
• Precedentsinthefield
• Moreopportuni?estolearn
LearningCircleSeries
Addressingfirst-costbarriers:
S A V I N G SUpfrontCost
Year10
Rebate
Addressingfirst-costbarriers:
S A V I N G SUpfrontCost
Year10
Customers
Rate-payerorPublicfunds
Rebates
$Hundreds
$Thousandsinupgrades
perpar?cipant
Agerallrebatesandpublicfundsareapplied,customersfacetheseop?onsforthebalance:
q PayCashq PaywithCreditq Declinetheupgrades
Payingforcosteffec=veefficiencyupgrades
Rebate
Addressingfirst-costbarriers:
S A V I N G SUpfrontCost
Year10
Rebate
Fina
ncing
Year10
Addressingfirst-costbarrierswithfundingandfinancing:
Rebate
Year10
Addressingfirst-costbarrierswithfundingandfinancing:
“Areyouahomeowner?”
“Doyouhaveagoodcreditscore?”
“Doyouhavesolidincome?”
Commonqualifyingcriteriaforfinancing:
BarrierstoFinancingintheCleanEnergyEconomy:Example-PropertyOwnership
BelowMedianIncome
Non-Homeowners
Homeowners
AboveMedianIncome
Non-Homeowners
Homeowners
Morethan1/3ofallU.S.householdsareinhomestheydon’town.
Source:U.S.CensusBureau,2015
Introduc=ontoInclusiveFinancingforEnergyEfficiency
• Makingthecaseformoreinclusivesolu?ons
• Overviewoftariffedon-billprograms
• Comparisontootheron-billfinancingapproaches
• Precedentsinthefield
• Moreopportuni?estolearn
LearningCircleSeries
CapitalProvider
U=lity
MeteredSiteSolu=onProviders
U=lity
ON-BILLCOSTRECOVERYTIEDTOMETER
ConsumersChooseAmongCompe=tors
Customer:Current&Future
INVESTMENTINUPGRADES
PAYASYOUSAVE(PAYS)® ®
PAYSoffersallu?litycustomerstheop?ontoaccesscosteffec?veenergyupgradesusingaproveninvestmentandcostrecoverymodelthatbenefitsboththecustomerandu?lity.
PayAsYouSave®andPAYS®aretrademarksofEnergyEfficiencyIns=tute,Inc.
CapitalProvider
U=lity
MeteredSite
Solu=onProviders
U=lity
ON-BILLCOSTRECOVERYTIEDTOMETER
Customer:Current&Future
INVESTMENTINUPGRADESProgram
Operator
AProgramOperatorcanaidimplementa=on
PayAsYouSave®andPAYS®aretrademarksofEnergyEfficiencyIns=tute,Inc.
Example:RoanokeElectric’s
PayAsYouSave®andPAYS®aretrademarksofEnergyEfficiencyIns=tute,Inc.
USDARUSEECLP
RoanokeElectric
MeteredSite
LocalContractors
RoanokeElectric
ON-BILLCOSTRECOVERYTIEDTOMETER
Customer:Current&Future
INVESTMENTINUPGRADESRoanoke
Center
PAYS® Offer – Here’s how it works: Ø Energy saving upgrades are installed in your home or building, and you pay
nothing upfront. The utility pays for the installed energy solution.
Ø To recover its costs, the utility puts a fixed charge on your electric bill that is significantly less than the estimated energy savings from these upgrades.
Ø You have no loan, no lien, and no debt associated with this transaction; just lower utility bills and a more comfortable home.
Ø When the utility recovers its costs, your obligation to pay ends.
Ø If you leave this location sooner, or if an upgrade fails and is not repaired, your obligation to pay ends if you have followed your responsibilities.
PayAsYouSave®andPAYS®aretrademarksofEnergyEfficiencyIns=tute,Inc.
PAYASYOUSAVE®(PAYS®)ON-BILLPROGRAMMODELTARIFF
Opt-inTariffforOn-BillEnergyEfficiency:ApprovedbyU=lityCommissionsinKansas,Kentucky,andArkansas
Themodeltariffhereisbasedonthemostrecentfiling,unanimouslyapprovedinArkansas.
PayAsYouSave®andPAYS®aretrademarksofEnergyEfficiencyIns=tute,Inc.
Introduc=ontoInclusiveFinancingforEnergyEfficiency
• Makingthecaseformoreinclusivesolu?ons
• Overviewoftariffedon-billprograms
• Comparisontootheron-billfinancingapproaches
• Precedentsinthefield
• Moreopportuni?estolearn
LearningCircleSeries
ExampleTransac=on: ™
• Investment: $10,000
• CostRecoveryPeriod: 15years
• CostofCapital: 3%
• Es=matedSavings: $100/month
• Charge: -$70/month
• NetSavingstoCustomer: $30/month,~30%ofsavings
• EnergySavings: 8,000kWh/year
Source:BriefingbyMACED,theprogramoperatorfortheHow$martKYprogram.Thissamplehasconvenientlyroundnumbers;averageinvestmentsizeis~$7500.
Singlestoryhome,upgradedwithinsula?on,airsealing,andheatpump
A`ributes HomeEnergyLendingProgram(HELP)
HELPPAYS®
•Residen?alpar?cipantsareeligible ü ü
•Rentersareeligible ü
•Nocreditscorecheckornodebttoincomera?os ü ü
•Noupfrontpar?cipantcost ü ü
•Es?matedsavingsmustexceedcostrecoverychargesby20% ü
•Par?cipantsignsaloanorpromissorynoteforadebtobliga?on ü
•Par?cipantacceptsanopt-inu?litytariff(NOTadebt)?edtometer ü
•Costrecoveryisthroughafixedchargeontheu?litybill ü ü
•Par?cipantacceptstariffwithdisconnec?onfornon-payment ü
•Paymentsendifupgradefailsandisnotrepaired ü
•Tariffrunswiththemeterandremainsineffectforsubsequentcustomeratthatloca?onun?lcostrecoveryiscomplete ü
Customers
Rate-payerorPublicfunds
Rebates
$Hundreds
$Thousandsinupgrades
perpar?cipant
Agerallrebatesandpublicfundsareapplied,theremainingbalanceyieldstheseop?ons:
q PayCashq PayonCreditq Declinetheupgrades
Payingforcosteffec=veefficiencyupgrades
Customers
Rate-payerorPublicfunds
Rebates
$Hundreds
$Billionsoflowcostcapital
available
$MillionsInvestmentannually
Loan PAYS®CapitalMarkets U=lity
Agerallrebatesandpublicfundsareapplied,theremainingbalanceyieldstheseop?ons:
q PayCashq PayonCreditq Declinetheupgradesü PAYSOffer
$Thousandsinupgrades
perpar?cipant
Payingforcosteffec=veefficiencyupgrades
CustomerEligibility
OfferAccepted DealSize DefaultRate
Loans
PAYS®2X 5X
2X
10X~10%$3300
0.3%50%
Comparisonforbuildingefficiencyupgrades
Investmentaccelera=onisaproductofthesemul=ples.
ü No consumer loan, lien, or debt ü Reaches renters and low-income
ü Higher uptake rates ü Deeper energy & carbon savings
PayAsYouSave®andPAYS®aretrademarksofEnergyEfficiencyIns=tute,Inc.
PAYASYOUSAVE(PAYS)® ®
Introduc=ontoInclusiveFinancingforEnergyEfficiency
• Makingthecaseformoreinclusivesolu?ons
• Overviewoftariffedon-billprograms
• Comparisontootheron-billfinancingapproaches
• Precedentsinthefield
• Moreopportuni?estolearn
LearningCircleSeries
Comparinglast(andbest)4monthsofHELPwithfirst4monthsofHELPPAYS®:
§ Doubledcustomersseekingassessments,andmorethanathirdweremul?-family(comparedto0previously).
§ Amongcustomersreceivingassessments,100%opt-informul?-familyrentalunits,and>80%forsinglefamily.
§ Doubledthescaleofcapitalimprovementsfromanaverageof$3000toabove$6000togetdeeperenergysavings(~30%).
DoublecustomersXDoubleprojectsize=
§ Quadrupledinvestment,soaringfrom$225kto$1million.
Result:SurgeinInvestment
Source:PreliminaryResultsoftheOuachitaElectricHELPPAYS®Program,November2016,www.oecc.com
Ouachita Electric Cooperative
(Loan)(Tariff)
• 2,400+efficiencyassessmentswithofferstoinvest• 1,400+investments:Morethanhalfofcustomerssay“Yes!”
• ~$5,700perbuilding,withco-paymentfromcustomer• $8+millioninvested• Lessthan0.1%chargeoff
• AnnualSavings:– 3.2millionkWh– 386,000therms– 5,200tonscarbon
Source:MidwestEnergy,repor=ngresultsthroughAugust2015
ExampleInvestmentProgram:
Thesesavingsgeneratemul=plebenefitstreams
Tariffvirtuallyassuresfullcostrecovery
Coopera=veLeadershipMa`ers
Morethan90%ofpersistentpovertycoun=esintheU.S.areservedbyelectriccoopera=ves.
Coopera=veLeadershipMa`ers
Ac?ve
Diligence
Morethan90%ofpersistentpovertycoun=esintheU.S.areservedbyelectriccoopera=ves.
Ruralcommuni?esareleadingthewayoninclusivefinancing,andareofferingassistance.
Introduc=ontoInclusiveFinancingforEnergyEfficiency
• Makingthecaseformoreinclusivesolu?ons
• Overviewoftariffedon-billprograms
• Comparisontootheron-billfinancingapproaches
• Precedentsinthefield
• Moreopportuni?estolearn
LearningCircleSeries
MoreIntroductoryInforma=onOnline
• CleanEnergyWorks.org– Introduc?ontoPAYS®– Top20Ques?ons&Answers
• CleanEnergySolu=onsCenter(U.S.DOE)– InclusiveFinancingforDistributedEnergySolu?ons
LearningCircleSeries
And,joinusforthefollowingsessionsinthisseries…
NextSession:UpdateonInclusiveFinancingPrograms
intheSouthThursday,February16th,2:00p.m.-3:00p.m.EST
Learnfromleadingprogramoperatorswhoaremanagingmul?-milliondollarefficiencyinvestmentporxoliosinareasof
theSouththatareaffectedbypersistentpoverty.
LearningCircleSeries
™
BeyondtheBasics:LearningCircleonInclusiveFinancing
1. Introduc?ontoInclusiveFinancingforEnergyEfficiency(today)
2. UpdateonExis?ngPrograms(Feb16th)
3. ConsumerProtec?onsinInclusiveFinancingforEnergyEfficiency
4. DuediligencewiththeDecisionToolforU=lityManagers
5. ExploringProgramOperatormodels
6. EstablishingaReserveFundfortariffedon-billEEprograms
7. SourcingcapitalforaTariffedOn-Billinvestmentprogram
8. Jobs:WorkforcedevelopmentinrapidlyexpandingEEmarkets
LearningCircleSeries
SEEALearningCircleforInclusiveFinancing
Eligibility:• Par?cipantsintheintroductorysessions• Ar?cula?onofaprojectthatfurthersyourinterestsBenefits:• Opportunitytopar?cipateinadvancedsessions• AccesstootherLearningCirclepar?cipants• Assistancewithadvancingyourproject
Contact:WesleyHolmes,[email protected]
LearningCircleSeries
Ques=ons?
LearningCircleSeries
40SoutheastEnergyEfficiencyAlliance|www.seealliance.org