Upfront costs are a major barrier to implementing energy efficiency projects in homes and businesses. An important goal of efficiency policies and programs is to help minimize these upfront project costs so property owners are encouraged to invest in energy efficiency improvements and retrofits. Several financing strategies are being pursued to achieve this goal, many of which we cover in our Toolkit pieces below.
Various entities may offer these types of financing for energy efficiency upgrades, including utilities, federal, state, and local governments, and energy service companies (ESCOs). In addition, private equity entities have become increasingly interested in funding packages of energy efficiency projects. The success and prevalence of the financing programs, however, has ebbed and flowed over the past few decades due to their complexity and challenges, for which resolutions are still evolving.
Our Toolkit pieces below provide concise yet detailed reviews of existing financing mechanisms, barriers to their implementation, and related resources for stakeholder reference. ACEEE seeks to better understand effective financing opportunities as a critical aspect of improving energy efficiency in our homes and businesses. Our annual Energy Efficiency Finance Forum, designed for investors, financiers, utilities, and policymakers, surveys the energy efficiency financial landscape including the latest innovations in financial structures and models. We include a link below to previous presentations from this Forum as an additional resource for this Toolkit.