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Some utility service providers offer On-Bill Financing for businesses that utilize the utility service providers Rebate and Incentive Programs for energy efficient upgrades and retrofits. Utility service providers offer On-Bill Financing at a 0% interest rate to qualified customers. Below are some frequently asked questions regarding On-Bill Financing:

What is On-Bill Financing?
On-Bill Financing (OBF) helps qualified commercial and taxpayer-funded customers pay for energy-efficient business improvements through their utility service providers bill.

Who is Eligible?
Customers that are eligible for On-Bill Financing must meet the following criteria:

  • The customer must receive a rebate or incentive through the Utility Service Providers Rebate or Incentive program.
  • The customer’s Company account must be in good standing:
    • Customer must have an active nonresidential account for at least two years
    • Customer must have at least 12 months consumption on current meter
    • Customer must have no disconnect notices in the last 12 months
    • Customer must have no deposit on SDG&E account
    • Customer must have no returned payments within the last 12 months
    • Customer must have no broken payment arrangements within the last 12 months
    • Customer must have no more than one payment arrangement within the last 12 months

How is the Loan Term Calculated?
The loan term for the project is determined by the repayment period of the equipment selected through the eligible program(s) and is calculated based on estimated annual energy savings not to exceed the maximum loan term. Loan funds must be used for the purchase and installation of qualifying energy efficiency measures.

What are the Loan Limits?
The project cost (after reduced rebates or incentives are applied) must be a minimum of $5,000. Loan maximums per meter are:

  • $100,000 for business customers with a 3 or 5-year maximum loan term
  • $250,000 for tax-payer funded customers with a 10-year maximum loan term

What are the Loan Terms?
0% interest - 3 or 5-years or Not-To-Exceed Extended Useful Life for Business Customers.

Estimate OBF Calculations - SAMPLE
Project Upgrade Costs$15,000.00
Rebate/Incentive Amount$5,000.00
Loan Amount$10,000.00
Estimated Annual Savings for Retrofit$3,900.00
Simple Payback Period (ROI)2.56 Years
On-Bill Financing Loan Installment (2.56 Year + 1 Month)$312.50