READ THE REPORT.
This report is designed to summarize the results and lessons learned from energy efficiency finance programs that have moved beyond the initial start-up phase; it is written for energy efficiency program planners and implementers.
Energy efficiency loan financing is proving to be a stable, low risk investment with low default rates and large-scale potential, according to a new study.
The American Council for an Energy-Efficient Economy (ACEEE) reviewed 24 energy efficiency loan programs, finding “extremely low” default rates, ranging from 0–3%, throughout the life of the average financing program. Default rates for efficiency loan programs have also remained largely unchanged, even during the near collapse of the real estate market over the past few years.
The programs evaluated by the ACEEE report, entitled What Have We Learned from Energy Efficiency Financing Programs, have loaned out over $1.5 billion.
Through the use of subsidies and energy program funds, interest rates for borrowers averaged 3-5% annually, the study suggested.