PG&E’s On Bill Financing program is a financial tool that can help your sell more projects at higher margins, all with no out of pocket cost for your customers. When combined with cash back rebates, these programs make upgrading easy.
Have you ever met with a customer who appears eager to say “yes” to your proposal only to later be told, “We’ll have to get budget approval and hope to include your project in next year’s budget cycle” or worse yet, lost the project all together to a competitor who came in at a lower price? These struggles could be a thing of the past by utilizing PG&E’s On Bill Financing program (OBF). This program, which has funded over 100 million since its inception allows PG&E commercial and industrial customers upgrade with no out of pocket cost using the money they are currently wasting on higher utility charges.
Just the Facts
Customer utilizing On Bill Financing can borrow up to $250,000 at zero percent for pipe/tank insulation projects and pay back the loan at zero percent on their PG&E bill. Monthly loan payments are determined according to the energy cost savings that upgrades are expected to deliver over time, and they’re interest-free and free of fees, pre-payment penalties and other charges. That’s a tremendous deal for customers looking to upgrade while minimizing costs and maximizing liquidity.
How it Works
To qualify, businesses must have at least two years of continuous PG&E service and have a good PG&E payment history over the past 12 months. In addition, a project’s estimated energy savings must be sufficient to repay the loan during the payment term, which can be as long as 120 months (10 year loan term offered in 2018 for therm saving projects).
The loan is paid back through the customer’s PG&E bill, using On-Bill Financing, or OBF. Loan terms and monthly payment amounts are determined based on the estimated monthly savings provided by the new products you install (we have an excel tool that calculates pipe/tank insulation savings based on linear ft installed).
The rebate and loan proceeds can be made payable to the installation contractor and typically pay within 30-45 days after installation.
*Rebate and OBF Proceeds can be made payable to contractor or customer.
In this example, prior to installation, you the contractor would apply for a $105,000, 0%, OBF loan on the customer’s behalf. Loan docs are generated based on the monthly savings (contractor provided excel template) and emailed to the customer to sign electronically. After install, the rebate and loan proceeds pay to the contractor (or customer) typically within 30-45 days. The customer would then see a new line items on their PG&E bill to repay the loan. The loan payment is typically slightly less than the monthly energy savings. In essence, the upgrade pays for itself.
New for 2018
To increase participation, we’ve made the following program changes available through the remainder of the year.
Increased incentives for Pipe/Tank Insulation (from $2/Linear Ft to $3/Linear Ft).
New rebate category for pipe fittings.
Available loan term extended from 60 months to 120 months. Maximum loan per premise increased from $100,000to $250,000. 4 Million max per customer.
To learn more about pipe insulation rebates, On Bill Financing, and PG&E’s Trade Professional Alliance program, please contact:
Joe Isaacs | Trade Professional Manager for PG&E
Please mention this article when inquiring. Program training available on demand or in person.