This is when a utility company or a third party such as a financial institution incurs the cost of the upgrade and the customer repays the company through a monthly charge on their utility bill. This eliminates the upfront cost by the customer since the costs are financed by the company, including those costs that are not covered by the rebate.
There are two types of on-bill repayment programs: on-bill loans and on-bill tariffs
On-Bill Loans are like business or personal loans and when the customer wants to move, they have to repay the full loan.
On-Bill Tariffs actually are attached to the meter. When a customer moves, the next customer continues to repay the financing. On-Bill Tariffs are much more complicated to setup, but this allows for a longer financing term.
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