LPEA On-Bill Financing Program – Pay as You Save
In partnership with First Southwest Bank (FSWB), LPEA can support your energy efficiency, electrification, solar photovoltaic (PV) or energy storage projects 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, electrification, solar PV, or energy storage 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
1. Start by making your home more efficient
Energy efficiency plays a critical role in maximizing the benefits of any energy-related investments, such as solar panels, or heat pumps. By improving energy efficiency, you can reduce overall energy consumption, lower costs, and enhance the performance of these technologies. LPEA offers home energy efficiency audit rebates to help you get started with identifying energy-saving opportunities in your home. For more information on LPEA’s rebates be sure to visit LPEA's Energy Efficiency page and Rebate Page.
2. Consider your options
Quality contractors are essential for the success of any energy-related project, as they ensure that the installation is done correctly and meets industry standards. When working with LPEA, it's important to choose a qualified installer—someone who is a trusted partner with LPEA and has a proven track record of performing high-quality work. To help you find reliable professionals, LPEA offers lists of Qualified Solar Installers and Qualified Heat Pump Installers.
If you're planning to install a solar system, it's also important to understand LPEA's Interconnection Application process to ensure that your installation meets the necessary requirements and is smoothly integrated with LPEA's systems.
3. Submit your application(s)
If you're interested in financing your energy improvements, you can apply for LPEA's On-Bill Financing program.
PLEASE NOTE: If you are using the loan for solar interconnection, you must FIRST submit an Interconnection Application to LPEA for approval. FSWB loans will only be reviewed after LPEA has granted approval for the interconnection application. This means you need to complete both steps in the correct order to avoid delays.
4. Await application review
LPEA plays a key role in the On-Bill Financing program by providing FSWB with a Credit Rating for each loan applicant. This rating is determined based on several factors, including:
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How long the member has had an account with LPEA
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The member's utility bill payment history
These factors help LPEA assess the reliability of the applicant before passing the loan application to FSWB for final approval. Once the credit rating is provided, the loan application is forwarded to FSWB, where it will undergo a more detailed review to determine whether the applicant qualifies for the financing. For the best chance of approval, it's important to maintain a good payment history with LPEA and keep your account in good standing.
5. Install your project
The On-Bill Financing loan from LPEA can be used to cover both labor and materials costs associated with your energy efficiency upgrades. This makes it a convenient option for financing the full scope of your project, from the purchase of equipment to the cost of professional installation services. Be sure to work with qualified contractors and ensure that all components of your project are eligible under the program guidelines.
6. Make your monthly payments
Once your On-Bill Financing loan is approved, the first month's loan repayment will appear on your next scheduled LPEA bill. This means that your loan payments will be conveniently included with your regular utility charges, making it easier to manage your payments over time. Be sure to review your bill to ensure the repayment is correctly listed and that all charges are accurate.
Program Q&A
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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. Solar PV projects (i.e. solar panels) and energy storage (battery systems) are also eligible for this program.
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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 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. There is no prepayment penalty.
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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.
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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 or energy storage project?
Yes, before receiving approval for an OBF loan for a solar PV or energy storage project, you must submit an Interconnection Application to LPEA so that LPEA can perform an engineering review for your proposed generation system. An OBF application will not be reviewed until the Interconnection Application has received engineering approval. Please find information on LPEA’s Interconnection Application and process HERE and check out our list of Qualified Solar Installers.
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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 finance these projects over time, allowing them to begin to reap the energy-saving benefits as soon as the efficiency measures are complete.
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Are there any requirements for the solar PV system size (kW capacity)?
Yes, if the loan is for an interconnection solar PV system at your home or business, the solar array size (kW capacity) needs to be designed to produce no more than 150% of the annual historical electric consumption at the service location. Your Qualified Solar Installer will be able to help you with this.
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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.