To get around this roadblock to energy efficiency, SMUD sets up long term lease-purchase arrangements for these customers. Through the PFP, SMUD provides free audits, identifies appropriate energy efficiency measures, identifies financing options, helps arrange installation of the retrofit measures by an outside contractor, and provides ongoing monitoring. Items eligible for rebates are also eligible for loans. Specific projects may be offered additional financing. The terms of the loans are generally established so that energy savings cover the cost of repayment, unless the customer opts for a shorter period.
Interest rates are lower than prime.
Payback periods range from three to five years. Customer eligibility for loans is based on generally accepted lending industry practices.