USDA unveils new no-interest efficiency loan program for rural utilities

Informational webinar July 12, 2016
Letter of intent due Aug. 5, 2016

The Rural Utilities Service (RUS), an agency of the Department of Agriculture (USDA), has opened the application process for its new Rural Energy Savings Program (RESP).

Under this new program, rural electric cooperatives and other rural energy providers have access to $52 million in zero-percent loans for relending to homes and small businesses to make cost-effective energy-efficiency improvements. Participants repay their utility for these improvements over time through a fixed charge on their monthly utility bills. RESP loans can be used for a wide variety of energy-efficiency measures, providing the utility can justify the cost-effectiveness of the measures for the consumer.

Utilities across the country have successfully implemented this on-bill financing model and it is part of an ongoing initiative by Environmental and Energy Study Institute You are leaving WAPA.gov. (EESI) to help families make home energy upgrades with no upfront costs.

To be considered for this initial round of RESP loans, utilities must submit a letter of intent to RUS by Aug. 5. RUS did not provide any information regarding the size or number of loans it plans to make. USDA and the Department of Energy will co-host a free webinar You are leaving WAPA.gov. on July 12, 12 to 1 p.m. Mountain Time, to discuss the program. The webinar will provide an overview of the program and cover evaluation, measurement and verification methods used to assess an energy-efficiency program or project.

“We view the Rural Energy Savings Program as a real win for rural electric co-ops and their members, as well as for other rural utilities,” said EESI Executive Director, Carol Werner. “We hope that these utilities will move quickly to tap the program.”

Source: Environmental and Energy Studies Institute, 6/21/16