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Title: Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities

Abstract

Ensuring that low- and moderate-income (LMI) households have access to energy efficiency is equitable, provides energy savings as a resource to meet energy needs, and can support multiple policy goals, such as affordable energy, job creation, and improved public health. Although the need is great, many LMI households may not be able to afford efficiency improvements or may be inhibited from adopting efficiency for other reasons. Decision-makers across the country are currently exploring the challenges and potential solutions to ramping up adoption of efficiency in LMI households, including the use of financing. The report’s objective is to offer state and local policymakers, state utility regulators, program administrators, financial institutions, consumer advocates and other LMI stakeholders with an understanding of: -The relationship between LMI communities and financing for energy efficiency, including important considerations for its use such as consumer protections -The larger programmatic context of grant-based assistance and other related resources supporting LMI household energy efficiency -Lessons learned from existing energy efficiency financing programs serving LMI households -Financing products used by these programs and their relative advantages and disadvantages in addressing barriers to financing or to energy efficiency uptake for LMI households

Authors:
 [1];  [1];  [1]
  1. Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
Publication Date:
Research Org.:
Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
Sponsoring Org.:
USDOE Office of Science (SC)
OSTI Identifier:
1393637
Report Number(s):
LBNL-2001045
ark:/13030/qt30p4j1b7
DOE Contract Number:
AC02-05CH11231
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; 29 ENERGY PLANNING, POLICY, AND ECONOMY

Citation Formats

Leventis, Greg, Kramer, Chris, and Schwartz, Lisa. Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities. United States: N. p., 2017. Web. doi:10.2172/1393637.
Leventis, Greg, Kramer, Chris, & Schwartz, Lisa. Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities. United States. doi:10.2172/1393637.
Leventis, Greg, Kramer, Chris, and Schwartz, Lisa. 2017. "Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities". United States. doi:10.2172/1393637. https://www.osti.gov/servlets/purl/1393637.
@article{osti_1393637,
title = {Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities},
author = {Leventis, Greg and Kramer, Chris and Schwartz, Lisa},
abstractNote = {Ensuring that low- and moderate-income (LMI) households have access to energy efficiency is equitable, provides energy savings as a resource to meet energy needs, and can support multiple policy goals, such as affordable energy, job creation, and improved public health. Although the need is great, many LMI households may not be able to afford efficiency improvements or may be inhibited from adopting efficiency for other reasons. Decision-makers across the country are currently exploring the challenges and potential solutions to ramping up adoption of efficiency in LMI households, including the use of financing. The report’s objective is to offer state and local policymakers, state utility regulators, program administrators, financial institutions, consumer advocates and other LMI stakeholders with an understanding of: -The relationship between LMI communities and financing for energy efficiency, including important considerations for its use such as consumer protections -The larger programmatic context of grant-based assistance and other related resources supporting LMI household energy efficiency -Lessons learned from existing energy efficiency financing programs serving LMI households -Financing products used by these programs and their relative advantages and disadvantages in addressing barriers to financing or to energy efficiency uptake for LMI households},
doi = {10.2172/1393637},
journal = {},
number = ,
volume = ,
place = {United States},
year = 2017,
month = 8
}

Technical Report:

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  • Although the need is great, many LMI households may not be able to afford efficiency improvements or may be inhibited from adopting efficiency for other reasons. Decision-makers across the country are currently exploring the challenges and potential solutions to ramping up adoption of efficiency in LMI households, including the use of financing.
  • Provides state and local policymakers with information on successful approaches to the design and implementation of residential efficiency programs for households ineligible for low-income programs.
  • Summarizes discussions and recommendations from a forum for practitioners and policymakers aiming to strengthen residential energy efficiency program design and delivery for middle income households.
  • The New York legislature passed the Green Jobs-Green New York (GJGNY) Act in 2009. Administered by the New York State Energy Research and Development Authority (NYSERDA), GJGNY programs provide New Yorkers with access to free or low-cost energy assessments,1 energy upgrade services,2 low-cost financing, and training for various 'green-collar' careers. Launched in November 2010, GJGNY's residential initiative is notable for its use of novel underwriting criteria to expand access to energy efficiency financing for households seeking to participate in New York's Home Performance with Energy Star (HPwES) program.3 The GJGNY financing program is a valuable test of whether alternatives tomore » credit scores can be used to responsibly expand credit opportunities for households that do not qualify for traditional lending products and, in doing so, enable more households to make energy efficiency upgrades.« less
  • Historically the low and moderate income (LMI) market has been underserved by solar photovoltaics (PV), in part due to the unique barriers LMI residents face to participation in the PV market. The intent of this report is to identify the most promising strategies state policymakers might consider to finance PV for LMI customers across three housing types: single family, multi-family, and manufactured housing. The result is a financing matrix that documents the first and second tier financing options states may consider for each housing type. The first tier options were selected based upon their potential impact on LMI PV deployment.more » Second tier financing approaches could also be used to achieve state policy goals, but may not have as much effect on the relevant LMI market segment. Nevertheless, each financing option comes with tradeoffs that state policymakers may wish to consider when they make decisions about which financing approaches are best suited to achieve their LMI PV deployment goals.« less