UK Energy Bill: £10,000 for household energy efficiency paid back with energy savings by the property, not the individual http://ow.ly/4RhA1
— Leonardo ENERGY (@LeonardoENERGY) May 10, 2011
The underlying assumptions of on-bill financing are that (1) home-owners and tenants have cost-effective energy-saving opportunities (the ‘energy efficiency gap’), (2) consumers do not have the necessary capital, knowledge or inclination to invest (the ‘finance gap’), and (3) a third party can step in with a standardised product and execute the project to a quality standard.
That’s a lot of ifs for developing a successful program in this field. It will require genuine entrepreneurs to come up with business models that work. Since these business models strongly depend on the entrepreneur’s personality, their replicability in other geographies represents a challenge.