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On-Bill Financing Method

Description

Utility or other third party (i.e. ITM) incurs upfront costs and is repaid via a charge on customers' utility bill.

NOTE: Utilities nolonger exist with the advent of deregulation. This is why we had ENRON. The States are even in on the action because they make over 10% on the utility bill. DIY so you don't have to pay either party.

Pros

  • Friendly financier rather than utility that charges you 18% interest
  • Flexibility to be structured as either a loan (stays with customer) or tariff (stays with meter)
  • Enhanced security

Cons

  • No tax breaks on interest or depreciation
  • Administrative barriers to supporting on-bill format
  • Typically limited in terms of amount financed, and often does not cover long term or deep retrofits

NOTE: To last con, the utility/company won't sell you something that will impact their bottomline but we will!

For more information

Depress this button titled, "FINANCING".

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