LPEA On-Bill Financing Program – Pay as You Save
In partnership with First Southwest Bank (FSWB), LPEA can support your energy efficiency and/or solar photovoltaic project through our On-Bill Financing (OBF) program. This program aims to help our members finance these projects over time while reaping the energy-saving benefits immediately.
Apply for a low-interest loan to finance your energy efficiency projects with FSWB. If approved, you will then pay that loan off over time as part of your LPEA electric bill. That means no extra bill to keep track of and no extra hassle.
How to get started:
- Identify your energy needs: On-Bill Financing relies on you, an LPEA member, to identify the energy measures you want financed. No energy audit is required. If the loan is for an interconnection and net metering solar PV system at your home or business, the solar array size (kW capacity) needs to be no more than 100% of the annual historical electric consumption at the service location. An estimated example: A home with an annual electric consumption of 8,000 kWh would be able to apply for an OBF loan through FSWB for a 5 kW solar PV system (8,000 kWh / 5.5 hours per day / 365 days / 80% production factor). As a reference, on average, a 5 kW solar PV system could cost $15,000 given a $3.00 per watt pricing.
- Apply online: Apply for the On-Bill Financing program (link below). Before receiving approval for an OBF loan for a solar PV project, you must submit an Interconnection/Net Metering Application to LPEA so that LPEA can perform an engineering review for your proposed generation system and can provide information on any necessary provisions related to your project. Please find information on LPEA’s Interconnection/Net Metering Application and process HERE and check out our list of Qualified Solar Installers.
- Application review: LPEA grades the application based on the customer's utility bill payment history for the last two years. The loan application is then passed on to First Southwest Bank for final approval.
- Install your project: You then use the loan to pay for labor and materials.
- Monthly repayment: Your first month's loan repayment will appear on your next scheduled LPEA bill.
Program Q & A
What projects are eligible for financing?
The program covers labor and materials for projects such as caulking/weather-stripping, insulation, LED lighting, storm or thermal windows and doors, insulating window coverings, water heaters, heat pump systems, or other heating or cooling systems that reduce energy consumption, and more. Distributed generation projects (i.e. solar panels) are also eligible for this program.
How much can I apply for with On-Bill Financing and what are the terms of the loan?
LPEA members in good standing can apply for loans up to $35,000 for energy efficiency and/or beneficial electrification upgrades and up to $35,000 for distributed generation solar PV projects. With an established LPEA credit rating, customers could receive a low annual percentage rate (APR) and can pay the loan back over 15 years for amounts greater than $10,000 and over 10 years for amounts $10,000 or less.
Can I hire an outside handyman or contractor to do the work under this program?
Yes. The financing includes the purchase of the materials (such as caulking/weather stripping or LED lights), and the cost of the labor to do the installation.
Do I need to submit an Interconnection & Net Metering Application to LPEA before I can be approved for an On-Bill Financing loan for a solar PV project?
Yes, before receiving approval for an OBF loan for a solar PV project, you must submit an Interconnection & Net Metering Application to LPEA so that LPEA can perform an engineering review for your proposed generation system, and can provide information on any necessary provisions related to your project. Please find information on LPEA’s Interconnection & Net Metering Application and process HERE and check out our list of Qualified Solar Installers.
What’s the catch?
There is none. Investing in energy efficiency measures pays ongoing dividends with lower electric (and other utility) bills. The low-interest loans and on-bill financing help LPEA members/customers finance these projects over time, while you begin to reap the energy-saving benefits as soon as the efficiency measures are complete.
Are there any requirements for the solar PV system size (kW capacity)?
Yes, if the loan is for an interconnection and net metering solar PV system at your home or business, the solar array size (kW capacity) needs to be no more than 100% of the annual historical electric consumption at the service location. An estimated example: A home with an annual electric consumption of 8,000 kWh would be able to apply for an OBF loan through FSWB for a 5 kW solar PV system (8,000 kWh / 5.5 hours per day / 365 days / 80% production factor). As a reference, on average, a 5 kW solar PV system could cost $15,000 given a $3.00 per watt pricing – this is an estimated example.
How do I apply for the On-Bill Financing?
It's easy! Click on the link below. Don't hesitate to call us with questions. Applicants must be in good standing and have an established credit rating with LPEA.