Harnessing the Market to Create Energy Savings

Glen Andersen, Jocelyn Durkay, Cassarah Brown 6/5/2015

An Energy Efficiency Financing Guide for State Policymakers

Energy efficiency is becoming a central component in many state energy planning efforts because of its vital role in reducing energy costs, increasing energy security and helping states meet emissions targets.

Despite a strong economic case, efficiency has not reached its full potential, largely because of regulatory and market factors. Additionally, energy efficiency customers are often challenged to acquire the upfront capital investment needed to install efficient technologies, particularly when retrofitting existing buildings and industrial facilities.

While many states use established financing products for energy efficiency, more states are starting to explore how innovative financing mechanisms and improved terms on traditional financing products can overcome market barriers to energy efficiency.

This report outlines how a variety of state-initiated financing instruments can achieve broader energy efficiency implementation. It illustrates state roles in energy efficiency financing and details state legislative trends in this area.

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