Energy efficiency upgrades can lower household energy costs significantly. However, many low-and moderate-income (LMI) households cannot afford the full cost of upgrades, even with assistance from federal, state, and utility financial incentives. This brief outlines steps that energy efficiency program administrators can take to close funding gaps for LMI customers seeking home retrofits. First, program administrators should first enroll eligible households in no- or low-cost weatherization programs. They can then offer rebates and other financial incentives to help households make other upgrades, such as purchasing energy-efficient equipment. If upfront costs remain, program administrators should explore financing solutions such as low-interest loans from mission-driven lenders or on-bill repayment options. Throughout the process, program administrators must ensure that all financing solutions include strong consumer protections for LMI customers.
