The Colorado on-bill financing opportunity

To meet Colorado’s ambitious greenhouse gas reduction goals, significant private investment is needed to electrify residential heating and cooling systems and improve energy efficiency. This report from SWEEP examines the critical role of low-cost financing, such as On-Bill Financing (OBF), in closing the funding gap and ensuring equitable access to these essential upgrades. By tying loan repayment to utility meters rather than individual borrowers, OBF can empower renters, low-income households, and those with limited credit to participate in the clean energy transition.

The analysis explores the scale of the financing opportunity required to meet targets outlined in Colorado’s Greenhouse Gas Roadmap 2.0 and Xcel Energy’s Clean Heat Plan. It also evaluates successful programs in other states, offering valuable lessons for Colorado stakeholders, including local governments, utilities, and lenders. With insights on designing effective financing tools — such as interest rate buy-downs and meter-based repayment mechanisms — this report provides a pathway to accelerating heat pump adoption, achieving equity, and reducing emissions across the state.

Dive into this comprehensive analysis to understand the challenges and opportunities of expanding access to financing for electrification and energy efficiency upgrades in Colorado.