Hello, fellow solar enthusiasts! Today, we’ll be diving into an area that is indispensable to the booming success of solar companies in the USA and the subsequent transition to renewable energy for many homes – energy efficiency.
Efficient energy use is the low-hanging fruit for those looking to transition to renewable energy, and according to a National Renewable Energy Laboratory study, it is indeed crucial for achieving a cost-effective 100% renewable grid. Better still, these savings don’t just apply to grid infrastructures, they hold benefits for everyday citizens looking to reduce their expenses while enjoying comfortable living conditions.
One effective way of achieving this efficiency is through energy efficiency loans offered by some rural electric cooperatives. For customers who are looking to boost the energy efficiency of their homes or install solar panels for their homes, cooperatives in some rural areas provide financing for these improvements which are then repaid through the customers’ utility bills. It’s a great solution that addresses two primary motivators for customers – comfort and savings. In fact, the Rural Power Coalition reports that up to 8% of rural co-op Midwest Energy’s customers in central and western Kansas have capitalized on this opportunity to date!
Why does this matter? Rural Americans reportedly spend up to 40% more on energy than their urban counterparts – a huge proportion that could be drastically reduced with efficiency improvements. Energy efficiency loans can potentially help co-op customers save significant sums of money, and at the same time, it can help co-op utilities to build resilience against extreme weather events. A win-win!
Moreover, these loans have the distinct advantage of being “inclusive” utility investments. Unlike traditional loans, your financial liquidity or creditworthiness is not assessed at the loan origination stage. Instead, it’s all about the potential energy savings of your home, farm, or business.
Want to install insulation, efficient HVAC equipment, or perhaps a much-desired solar array for home? These measures can all be funded through an energy efficiency loan which you pay off through a lesser monthly charge than the estimated savings from the upgrade. An efficient financial model for a more energy-efficient world – it’s almost poetic!
And in case you were wondering what happens if you move before paying off the loan – no worries! The monthly charge simply transfers to the future customers of the site.
But perhaps you’re wondering how these loans are affecting people’s bottom line. Well, case studies presented by the Rural Power Coalition show that customers are noticing a reduction in demand (and therefore, cost). Indeed, one payoff for the Ouachita Electric Cooperative in southern Arkansas was a staggering 4.5% reduction in rates for residential customers on top of the 1.5 to 2 kW reduction in peak demand for each home upgraded with weatherization and solar projects.
Taking advantage of energy efficiency solutions can serve as a stellar stepping stone to installing a renewable energy system, such as solar panels for your home. Not only do you save money and improve your comfort levels, but you also contribute towards a more resilient and sustainable energy future.
So next time you’re considering reaching out to a solar company for your solar needs, remember to also ask about energy efficiency loans – it could be a brilliant way to kickstart your journey into the world of renewable energy!
Original Articlehttps://pv-magazine-usa.com/2024/03/28/rural-electric-co-ops-lend-money-to-customers-to-improve-energy-efficiency/
