If you have a long list of improvements to make to your property, and are not sure where to find the funds to support them, you are not alone. New financial strategies can fund multifamily property retrofits outside of a refinancing or recapitalization. With these tools, owners can eliminate the need for upfront cash, lower the cost of capital, and even increase payback periods by transferring assessment or payments to new owners in the event of a sale. Here’s how.

Energy Services Agreement: Customers enter into an agreement to make regular payments to a contractor over time. Rates are based on mutually-agreed upon historical costs. The agreement is structured as a floating percentage of the customer’s actual utility bill or as a cost per-avoided therm/kWh.

Lease: Leases generally provide 100 percent financing and reduce or eliminate upfront expenses. To qualify as a lease, the project must meet at least one of two requirements: 1) Customer is responsible for the operation of the equipment or 2) all benefits from the equipment are allocated to the customer.

On-Bill Financing: A utility provides qualifying customers with loans to cover 100 percent of the energy efficiency improvements. Customers repay the loan through charges added to their utility bills. For more information on SDG&E’s On-Bill Financing program, call 800-644-6133 or email at

On-Bill Repayment: These programs provide financing through third-party financial institutions with the utility bill used as the repayment mechanism. SDG&E expects to launch On-Bill Repayment in early 2015.

Property Assessed Clean Energy (PACE): PACE allows property owners to pay for energy/water efficiency and renewable improvements through an additional assessment on their property tax bill, with terms of 5-20 years. For more information visit

Interested in learning more? We are here to help!

Financial Matrix  We’ve compiled a summary of the finance programs, grants and rebates, tax credits and additional resources to assist you in making energy efficiency upgrades to your property.

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