Rural Energy Savings Program

The Rural Energy Savings Program (RESP) is a proposed U.S. legislative initiative to provide low-interest loans to public and cooperative electric utilities, which in turn offer on-bill financing to rural homeowners for energy efficiency improvements. The program aims to reduce utility bills and greenhouse gas emissions while creating local jobs. The briefing outlines the program's operational requirements, compares House and Senate versions of the legislation, and highlights existing on-bill financing examples in Kansas, South Carolina, and New York.

• The Rural Energy Savings Program (RESP) utilizes "on-bill financing," where the U.S. Department of Agriculture’s Rural Utilities Service (RUS) provides long-term loans to public and cooperative electric utilities, who then offer low-interest loans to consumers for home energy efficiency improvements. These loans are repaid via monthly utility bills using the savings generated from reduced energy consumption.
• To participate, utilities must create a list of cost-effective, commercial off-the-shelf energy efficiency measures and develop implementation and measurement and verification plans. Utilities can manage revolving loan pools for up to 20 years, after which the original loan must be repaid to the RUS without interest. Utilities are permitted to charge consumers up to 3% interest to cover costs and establish a loan loss reserve.
• There are key differences between the House (HR 4785) and Senate (S. 2216) versions of the legislation. The House version proposed $993 million in funding over five years and allowed homeowners to combine RESP loans with other incentives. The Senate version does not specify funding levels, continues the program until funds are exhausted, and allows loan advances to utilities and co-ops of up to 50%, compared to 30% in the House bill.
• Existing on-bill financing models include Midwest Energy in Kansas, which has funded over 700 projects since 2007 with more than $4 million; a 2011 pilot program by the Electric Cooperatives of South Carolina that retrofitted 125 homes; and the New York On-Bill Recovery Loan Program, the first statewide program of its kind, established in 2011.

APA

Environmental and Energy Study Institute (2012). Rural Energy Savings Program. https://www.eesi.org/files/resp_bills_062612.pdf

Chicago

Environmental and Energy Study Institute. Rural Energy Savings Program. 2012. https://www.eesi.org/files/resp_bills_062612.pdf.

Wikipedia

{{cite report |author=Environmental and Energy Study Institute |title=Rural Energy Savings Program |date=June 2012 |url=https://www.eesi.org/files/resp_bills_062612.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{environmentalandenergystudyinstitute2012rural, author = {{Environmental and Energy Study Institute}}, title = {{Rural Energy Savings Program}}, institution = {Environmental and Energy Study Institute}, year = {2012}, month = jun, url = {https://www.eesi.org/files/resp_bills_062612.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }