Holland On-Bill Loan Program MPSC Energy Waste Reduction Low Income Workgroup Anne Saliers

1. Holland On-Bill Loan Program MPSC Energy Waste Reduction Low Income Workgroup Anne Saliers Holland Board of Public Works November 1, 2018

2. Who We Are • City of Holland • Population of 33,051 • Holland Board of Public Works • Municipal utility – electric, water, waste water, broadband • 28,000 electric meters • 82% C&I, 18% Residential • 175 employees • Holland Energy Fund • Non-profit 501(c)3 corporation • 40-year Community Energy Plan • 7,400 homes, 50% efficiency improvement

3. Holland Energy Fund Programs

4. Home Energy Retrofit Program • Incentive to encourage “deep” retrofits • 10% rebate on project cost • For projects of $10,000 or more • Expert guidance • Residential Energy Advisor on City staff • Michigan Saves authorized contractors • Begins with home energy assessment • Includes DOE Home Energy Score • Results in lower utility bills and increased home comfort and safety for homeowner

5. On-Bill Loan Program • Simple, convenient home improvement financing • Attractive terms • Low, fixed interest rate – 4.99 - 5.99% • Borrow $5,000 – $30,000 • Up to 15 years • No penalty for pre-payment • Simple to qualify • 12 months on-time bill payment history • No bankruptcies, money judgements prior 3 years • Convenience of paying on utility bill • Loan associated with the property • Transferable

6. On-Bill Loan Program Goals“Strengthen Community and Neighborhood” • Encourage deep energy savings (environment) • Anything in MEMD • Loan associated with property • Increase access (equity) • Bill payment history instead of credit score • Up to 15 years to pay • Administratively operate in a cost effective manner (economic) • Won’t run out of money

7. Eligible Measures • Anything in the Michigan Energy Measures Database (MEMD) • Health, life, safety measures needed to do EE upgrades • Knob and tube wiring • Asbestos abatement • Roof repair • Renewables • Min. DOE Home Energy Score of 8

8. Sources of Capital • Holland Energy Fund • Grants, incentives, programs - City general fund • Loans - $3 million line of credit from HBPW cash reserves • Interest rate – 10 year Treasury bond rate • Potential to seek public and private grants and donations • Community Development Block Grant (CDBG) • Up to $5,000 for income qualified homeowners

9. Administration • Holland Energy Fund • Custodian of loan agreements and documents • Files notice with the county • Pays contractors • Holland Board of Public Works • Payment history • Billing and payment collection • Contracted services • Loan origination – WECC/EFS • Loan servicing – Concord • Program administration – Michigan Saves • Contractor recruiting, vetting, training • Quality assurance • Evaluation and reporting

10. HER Program Results to Date • 122homes improved • 4 CDBG • $4,101,228 total investment • $3,729,535– home homeowners • $20,000 – CDBG subsidy • $351,693– community • 54% used On-Bill financing • Home Energy Scores • Test in – 4 • Test out – 8

11. On-Bill Loan Program Results (as of 9/30/18) • 71loans booked • Project cost - $1,111,506 • Financed amount - $1,014,262 • Ave. project cost - $15,655 • Ave. financed amount - $14,285 • Ave. total measures per project – 7.4

12. Lessons Learned • It’s working! • Hiring of a Residential Energy Advisor • Availability of financing • Surrounded by a great team of partners • CDBG dollars are left on the table • Drawing LI participation requires multi-agency collaboration and walking alongside the homeowner the entire way • Focused work continues in getting to scale • 250 retrofits/year • Communication, education are key

13. Thank You Anne Saliers Community Energy Services Manager Holland Board of Public Works asaliers@hollandbpw.com www.hollandenergyfund.com Holland Energy Fund - 2017 GEEA Innovator of the Year