This policy brief examines and estimates the volume of residential and commercial energy-efficiency financing from five programmatic sources:
- Property assessed clean energy (PACE)
- State energy offices’ revolving loan funds
- On-bill financing
- Utility financing programs (off-bill)
- Energy savings performance contracting (ESPC)
According to the data obtained for this research, the loan volume from the above-mentioned programs provides nearly $7 billion in lending annually. This represents growth of more than 40% since 2014, the most recent year for which we have comprehensive lending volume data from these programs. While annual programmatic lending has generally been increasing, it is still at least an order of magnitude lower than the levels needed to meet decarbonization goals. Policy drivers are necessary to enable further growth in the programmatic sources that finance energy efficiency.