Under IUI, sometimes known as tariff on-bill financing, the resident who upgrades their home’s electrification or efficiency measures pays a monthly tariff that sums to no more than the savings in energy costs afforded by the new measures. The tariff is tied to the electric meter, rather than the resident, so that if a resident moves, the tariff simply transfers to the next occupant.

Unlike traditional on-bill financing, where a utility makes a loan to a property owner, thus requiring adequate credit history and a willingness to take on debt, IUI decouples capital improvements from the individual resident or business. It is a financing mechanism that enables upgrading properties with measures that reduce operating costs and improve the comfort, health, and environmental footprint of the building, all with little or no upfront capital investment from the ratepayer.

As part of the project, MMWEC will conduct a feasibility study of implementing MMWEC’s unique pooled loan program as a capital
pool for MMWEC Member light departments that launch IUI programs. This pooled loan funding would leverage economies of scale
and eliminate the substantial time and resources involved in each individual MLP independently sourcing capital.