On-bill scheme refers to a method for financing energy renovations by using the utility bill as a repayment vehicle. These schemes bring the upfront costs of energy efficiency upgrades down to zero by adding a periodical line item to a customer’s utility bill, which represents an advantage for end-users willing to renovate their houses.
More than 30 years of successful implementation in the USA amounting to over USD 2 billion in on-bill projects encourage the evaluation of these in Europe. RenOnBill made this evaluation and came up with a range of on-bill business models that could be potentially implemented in Europe. These models are the standard on-bill financing (OBF) scheme, the On-Bill Repayment (OBR) model, the On-Bill Repayment via a Special Purpose Vehicle (SPV) and the On-Bill Repayment operated through a “Master Servicer” and are presented in a series of interactive factsheets developed by RenOnBill.
In addition to illustrating the key characteristics of each model, the factsheets, available in English, German, Italian, Spanish and Lithuanian, give:
- A brief explanation of the process
- Explained diagrams
- Pro and cons of the implementation of the model
Implementing on-bill models in the EU would bring an array of benefits for different actors. In particular, utilities would gain long-term commercial relationships, increase the level of loyalty of the utility’s customers and the diversification of their offer. They would also increase their sustainability as a company, by making energy efficiency part of their services package.
More detailed information on the analysis of these models can be found in the report ‘On-bill business model development guidelines’ at this link.