On-Bill Financing An Overview for Local Governments Mike Hackett - - PowerPoint PPT Presentation

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On-Bill Financing An Overview for Local Governments Mike Hackett - - PowerPoint PPT Presentation

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On-Bill Financing An Overview for Local Governments Mike Hackett NRG Answers, LLC for Pacific Gas & Electric October 10, 2014 On-Bill Financing: Program Overview What is On-Bill Financing? PG&E energy efficiency program to

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On-Bill Financing

An Overview for Local Governments

Mike Hackett NRG Answers, LLC for Pacific Gas & Electric October 10, 2014

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On-Bill Financing: Program Overview

  • What is On-Bill Financing?
  • PG&E energy efficiency program to assist non-residential

customers and government customers with funding for energy efficient facilities improvements through zero interest loans

  • OBF serves as an enhancement to existing rebate and/or incentive

programs

  • OBF helps remove the upfront cost barrier that often

prohibits local governments from installing energy efficiency retrofits, particularly for smaller capital improvement projects

  • After project completion, PG&E will lend the money for the retrofit

and the customer will pay the loan – interest free – through their monthly utility bills

  • Note: OBF is one of many financing tools. Customers can self-

fund energy efficiency projects, or obtain financing through regular lender programs.

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On-Bill Financing: Eligibility

  • Who is eligible?
  • OBF is available to non-residential customers for projects that qualify for a rebate
  • r incentive through a PG&E program, and meet the minimum payment history

screening criteria

  • Commercial customers may qualify for loans between $5,000 and $100,000, with

loan periods of up to 60 months

  • Government agencies may qualify for loans between $5,000 and $250,000 per

PG&E meter ($1M cap w/PG&E approval*), loan periods of up to 120 months Note: OBF eligibility is subject to a customer payment history review

Loan Terms Commercial, Industrial, Agricultural Government Agency Only Interest 0% 0% Minimum Loan Amount per Customer $5,000 $5,000 Maximum Loan Amount $100,000 / premises $250,000 / meter** Maximum Loan Amount per Customer $1,000,000 $1,000,000 Maximum Loan Term 60 months 120 months

*$1,000,000 allowed ‘where, in PG&E’s sole opinion, unique opportunities to capture large energy savings exist and all other OBF loan program terms will be met. Meters and locations can be aggregated. **$250,000 max per government customer for LED Streetlight Projects

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Sample OBF Payment Calculation

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OBF Status Report – August 2014

  • Cust. Type

# % $ %

  • Avg. $

Final KWHs Final THERMS SMB 555 67% $14,029,419 40% $25,278 31,342,689 91,681 Gov't Agency 139 17% $15,752,773 45% $113,329 24,538,677 242,918 LCIA 134 16% $5,366,497 15% $40,048 22,381,980 53,951 Total 828 100% $35,148,688 100% $42,450 78,263,346 388,550

  • Cust. Type

# % $ %

  • Avg. $
  • Orig. KWHs
  • Orig. THERMS

SMB 167 20% $4,992,661 14% $29,896 1,385,443

  • Gov't Agency

42 5% $11,418,927 32% $271,879 1,325,762 1,565 LCIA 37 4% $1,072,578 3% $28,989 744,860

  • Total

246 30% $17,484,166 50% $71,074 3,456,065 1,565 Reserved Loaned

Status # $ Requested 483 $5,832,499 Reserved 246 $17,484,166 Loaned 828 $35,148,688 Loaned 828 $35,148,688 (Repayments) ($10,786,459) Net Loaned $24,362,229 Loan Pool $50,500,000 Subscribed (Reserved + Net Loaned) ($41,846,395) Remaining $8,653,605 OBF Loan Pool (as of 8/31/14)

Key Stats

  • Through Aug. 2014, loan volume originated is 25%

higher than 2013 full year results

  • $35.1M loaned to date:
  • $14.3M in 2013 on 300 loans
  • $12.6M in 2014 on 375 loans
  • 31% of loaned amounts have been repaid
  • Aug. monthly repayments: $595k (YTD average:

$595k/mo.)

  • Average Loan: $42k (SMB $25k, Gov’t Agency $113k)
  • Net loaned amount increased by $3.4M, July-Aug.
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“Barriers” with On Bill Financing

Education about OBF advantages and process

  • Electeds, Staff, Financial, Legal

Build in program timeline

  • Project approval, initiation
  • Incentive approval
  • Loan modification

Lowering Barriers

  • Pre-approval process
  • Internally
  • Externally
  • Close communication
  • Utility Account Rep (specialists) and Contractor

Start Small, Progressive Approach

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OBR for State Agency Facilities

OBF OBR

Loan Size $5k-$250k Not limited: Based on Lender Requirements Lender PG&E/SCE/SCG/SDGE Private Financial Institution Underwriting Criteria Bill payment history Determined by Lender Loan Term Up to 10 years. Determined by projected energy savings

  • Flexible. Determined by

Lender Eligible Measures Energy Efficiency (EE) EE, Demand Response, Distributed Generation

  • On-Bill Repayment (OBR) - New Statewide Pilot programs to support

energy investments

  • Partnership between IOUs, CAEATFA, and CPUC
  • OBR allows lenders to originate loans and leases for energy measures with

repayment on utility bill

  • Expected Launch 2nd Qtr 2015
  • Track progress at www.caleefinance.com
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Thank you!

CONTACT PG&E:

Al Gaspari – Principal Program Manager

  • Energy Efficiency Financing Programs

Michael Norbeck – Program Manager

  • On Bill Financing

www.pge.com/eef eefinance@pge.com

Mike Hackett NRG Answers, LLC Santa Barbara, CA 805.403.6450 mike@nrganswers.com

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RESOURCES

Links to Utility Company OBF Programs

  • PG&E: pge.com/eef
  • Southern CA Edison:
  • https://www.sce.com/wps/portal/home/business/tools/on-bill-financing
  • So Cal Gas:
  • http://www.socalgas.com/for-your-business/rebates/zero-interest.shtml
  • SDG&E: http://www.sdge.com/business/bill-financing

Other:

10/14/14 Paso Robles, 8-10AM PG&E Contractor Rebates 10/23/14 Fresno, 5-8PM, PG&E Contractor Financing