How to Finance Energy Efficiency Upgrades at your Multifamily Property
36 percent of U.S. households now rent, and more than 60 percent of the rental market is in multifamily buildings, according to the U.S. Department of Energy Better Buildings.
This makes it a great place for communities to achieve energy savings. Unfortunately, adoption of energy efficiency measures in multifamily housing has lagged other types of housing. By working to save energy at your property, you can help your community close that gap, lower your operating costs on shared spaces, and decrease turnover in this turbulent market.
Make your multifamily property more competitive with energy efficiency upgrades
Last May, a research team at the American Council for an Energy-Efficient Economy (ACEEE) found that when energy efficiency information is provided, renters select the most efficient listings 21% more often and, coincidentally, the least efficient option 21% less often. They also discovered that some renters were even willing to pay more in rent for more efficient properties! This makes energy efficiency a great way to differentiate your property in an increasingly competitive market. Even so, some property owners are hesitant to invest in energy upgrades today. It’s understandable—given inflation rates and market uncertainty due to the pandemic. But the Multifamily Energy Savings Program (MESP) is here to help. We recognize the unique opportunity multifamily homes play in building energy-resilient communities and how multifamily property owners can help lead that initiative.
For this reason, MESP provides special rebates and cash incentives for energy efficiency projects to PG&E® customers with a minimum of five units at their properties.
Rebates and incentives for multifamily, energy efficiency projects
Whether your property is a condominium complex, apartment building, dormitory or assisted-living facility, MESP can provide you turnkey rebates on installed energy-efficient equipment and other standard upgrades. MESP can also help cover the cost of larger projects through access to financing.
On-Bill Financing for energy-saving upgrades
On-bill financing helps qualified customers pay for energy-efficiency retrofit projects with zero interest. It’s best for owners looking to make larger energy-savings investments. Borrowers pay back the loan slowly over time, and payments are calculated based on estimated annual energy savings, not to exceed the maximum loan term.
On-Bill Repayment for energy-saving upgrades
Eligible customers who do not qualify for the On-Bill Financing program may finance qualifying measures with privately funded loans that are repaid through their monthly utility bill.
Get help funding your efficiency project from our energy advisors
These financing avenues make improving operations and comfort while reducing utility bills affordable. Get in touch with our energy advisors to learn more about the MESP program and which financing option is right for your project.
Posted October 13th, 2022