Rewiring America

At a Glance

Industry

Nonprofit

Project Types

Climate Justice/Energy Equity, Data Analysis, Financial Evaluation and Planning

Year

2024

Location

Summary

Stacey Jewell analyzed mechanisms for financing home electrification upgrades, and identified the option with the best potential to scale. She then identified the states with potential to expand or implement that financing mechanism.

Goals

Rewiring America is a non-profit organization seeking to "Electrify Everything for Everyone". They are particularly focused on closing the upfront cost gap for residential electrification and seek to gain a deeper understanding of the residential sector's financing options.

Solutions

Stacey engaged in pivotal stakeholder interviews, research, and analysis to identify a financing option that is most effective and has the potential to scale, including in reaching low-income households. Through this assessment, she identified Inclusive Utility Investment (IUI), sometimes known as tariffed on-bill financing, as a solution that outperforms other financing options, including traditional debt products. Stacey then developed strategies to scale IUI programs across multiple states and aligned recommendations with policy objectives.

Potential Impact

Incorporating Inclusive Utility Investments (IUI) into Rewiring America's strategy could significantly boost electrification efforts. IUI programs have shown 70-90% customer acceptance rates, compared to <10% for typical loan programs. They overcome a significant market barrier by allowing renter access, addressing "split incentives". Utilities can also integrate IUI into their IRPs and rate cases, potentially increasing investment in cost-effective efficiency measures. IUI supports scalability, as utilities have wide customer access, built-in credit ratings, and access to low-cost capital. By partnering with green banks, using revolving credit lines, and exploring tax equity models these investments can drive widespread adoption of electrification at the scale needed to meet climate goals while allowing wider accessibility to consumers.

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