Federal financing options for on-bill financing energy efficiency programs

The document outlines three federal financing options for rural electricity providers: the Energy Efficiency and Conservation Loan Program (EECLP), the Rural Economic Development Loan and Grant Program (REDLG), and the Rural Energy Savings Program (RESP). EECLP offers large-scale, non-competitive financing at Treasury rates for a wide range of efficiency and renewable energy projects. REDLG provides zero-interest loans or grants for projects creating rural employment, including energy efficiency, though it requires a 20% in-kind match. RESP is specifically designed for on-bill financing, offering zero-interest loans to providers who can re-lend to consumers at up to 3% interest, provided the energy measures have a payback period of 10 years or less.

• The Energy Efficiency and Conservation Loan Program (EECLP) allows rural electric cooperatives and public power authorities to borrow funds at Treasury rates plus 0.125% for investments in energy efficiency and renewable energy. The program has the authority to provide over $6 billion in loans annually, and borrowers can add a 1.5% markup to loans provided to end-customers.
• The Rural Economic Development Loan and Grant (REDLG) program offers zero-interest loans or grants to local utilities for projects that create or retain rural employment. In FY 2014, approximately $91 million was available for zero-interest loans and $10 million for grants, with a requirement for a 20% in-kind match of project costs.
• The Rural Energy Savings Program (RESP) is specifically designed to support on-bill financing, where rural electricity providers receive zero-interest loans from the RUS and re-lend them to consumers for energy efficiency improvements. The provider can charge the end-user a maximum interest rate of 3%, and the funded measures must have a payback period of 10 years or less.
• While the RESP was authorized to provide up to $75 million annually through 2018, it remained dormant until December 2015 when Congress appropriated $8 million. This appropriation is intended to act as a credit subsidy to leverage an estimated $50 million in zero-percent loans.

APA

Environmental and Energy Study Institute (n.d.). Federal financing options for on-bill financing energy efficiency programs. https://www.eesi.org/files/USDA_OBF_financing_options.pdf

Chicago

Environmental and Energy Study Institute. Federal financing options for on-bill financing energy efficiency programs. n.d. https://www.eesi.org/files/USDA_OBF_financing_options.pdf.

Wikipedia

{{cite report |author=Environmental and Energy Study Institute |title=Federal financing options for on-bill financing energy efficiency programs |url=https://www.eesi.org/files/USDA_OBF_financing_options.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{environmentalandenergystudyinstitutendfederal, author = {{Environmental and Energy Study Institute}}, title = {{Federal financing options for on-bill financing energy efficiency programs}}, institution = {Environmental and Energy Study Institute}, url = {https://www.eesi.org/files/USDA_OBF_financing_options.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }