Get Interest-Free Financing on Energy-Efficiency Upgrades
Want to make energy-efficient improvements, but need help financing? Your business could qualify for our On-Bill Financing Program (OBF).
Program participants will enjoy:
- 0% interest loans
- No fees
Convenient loan repayment through your monthly SCE utility bill
You could also receive additional benefits from your project, including long-term energy savings and financial incentives for installing qualified energy-efficient equipment (restrictions apply).
We Work with You from Application to Financing
- Submit your OBF application for credit evaluation and approval.
- Once approved, you can install your project and submit your Installation Report.
- After inspecting and approving your installation, we’ll calculate your final loan amount and terms.
- Finally, we’ll distribute your OBF loan funds, and you’ll begin monthly repayments.
Who is eligible?
All SCE Business Customers are eligible to apply. To participate in OBF, you’ll need to:
- Apply for one or more qualifying incentive programs
- Have an active SCE account
- Be in good credit standing with SCE
- Confirm that you would only undertake this project with the help of an OBF loan
Full Eligibility Requirements
To participate in OBF, you’ll need to:
- Participate in one or more of the following energy efficiency programs:
- SCE implemented incentive or rebate programs
- SCE sponsored local third-party implemented incentive or rebate programs
- Statewide third-party implemented incentive or rebate programs
- Regional Energy Network implemented incentive or rebate programs
Note: SCE is not, and shall not be deemed to be, a party or guarantor to any agreement between a customer and any third-party implementer. SCE has no contractual obligation, directly or indirectly, to the customer as it relates to the third-party energy efficiency programs.
Learn more about Third-Party Energy (EE) Programs for SCE Customers.
- Be an SCE business customer with:
- In good credit standing with SCE
- No previous OBF loan defaults
Customers must confirm that the project financed would not have been undertaken in the same capacity if it was not for the availability of the OBF loan.
Other terms and conditions apply.
Apply Online
To get started with On-Bill Financing, use the User Guide for Submitting OBF Applications to submit your OBF application in your MyAccount. Read the OBF Terms & Conditions for more information about the program.
Trade Professionals may also submit OBF applications on behalf of customers by registering in SCE’s Trade Professional Program. Access the Trade Professional Community Portal to Review the User Guide and Video, and to register.
Customers and their representatives will be required to complete a Project Matrix Form as part of the OBF application process, and again when providing their installation report. The monthly loan repayment amount will be approximately equal to the estimated monthly dollar savings Customers are expected to receive through their SCE utility based on the energy savings proposed on the supplemental Project Matrix form. Any misrepresentation of energy savings could affect the Customer's overall energy bill.
Contact Us
Have questions or unable to apply online? Email businessincentives@sce.com
or call 1-800-736-4777.
On-Bill Financing Frequently Asked Questions
On-Bill Financing FAQ
Participation in a qualified incentive and/or rebate is required for OBF approval. OBF funding covers the remaining cost of qualifying energy efficiency measures after applicable incentives and/or rebates.
Loan limits vary by customer segment. Loan limits apply to the Service Account (SA), so customers with multiple SAs may take loans under each SA, subject to terms and conditions. The following table shows the funding limits and terms for different Customer segments:
| Customer Segment | Loan Amounts | Loan Terms |
|---|---|---|
| Government & Institutional | Min: $5,000 Max: $1,000,000 | Up to 10 years or the Expected Useful Life (EUL) of the measure providing the most energy savings, whichever is less |
| Multifamily | Min: $5,000 Max: $250,000 | Up to 10 years or the Expected Useful Life (EUL) of the measure providing the most energy savings |
| Business | Min: $5,000 Max: $250,000 | Up to 5 years or the Expected Useful Life (EUL) of the measure providing the most energy savings |
Loans over $250,000 will be funded without incentives. Customers will have the option of choosing a loan amount up to $250,000 and qualify for incentives through an eligible energy efficiency incentive program, or to receive a loan amount over $250,000 and waive incentives from an eligible energy efficiency incentive program. In all cases OBF projects are required to meet all the requirements from the incentive program used to qualify for the loan.
Exception Caps: Maximum $4,000,000 per Service Account for all customer segments. Exception caps require SCE management approval on a case-by-case basis. Other restrictions may apply.
Bundled OBF Loans: Government and Institutional customers can bundle multiple loans under the same Customer Account to meet the $5,000 loan minimum.
The maximum loan amount is the difference between the final approved total project cost of the installed, eligible energy efficiency solutions, and the incentives paid by SCE for the energy efficiency project. Loan funds must be used for the purchase and installation of qualified energy efficiency equipment.
The factors determining the final loan amount are:
- Estimated Bill Neutrality: The monthly loan repayment amount is calculated to be approximately equal to the estimated monthly dollar savings on your SCE utility bill as a result of your energy efficiency project.
- Loan Amount Limits: The loan amount for any one service account cannot exceed the established loan term limits by customer segment.
The factors determining the final loan term are:
- The effective useful life of the measures being financed. The effective useful life (EUL) of a Measure or Solution is an average length of time a Solution may be operational, based on historical analysis.
- If there is more than one Solution installed, the EUL of all installed Solutions will be that of the Solution which contributes the greatest energy savings to the project.
- Net Metering Energy Consumption (NMEC) projects have an EUL equal to the weighted average of all measures included in the project.
- Strategic Energy Management (SEM) projects, have an EUL of five years.
- Behavioral Retro Commissioning (BRO) measures, have an EUL of three years.
Loan Term Limits: The OBF loan term will not exceed the customer segment cap or the estimated bill neutrality calculation.
How will the loan be repaid?
SCE will bill each monthly installment as a line item on your utility bill according to the terms of the Loan Agreement until the loan is paid in full. You may repay the loan in its entirety at any time with no penalty or additional cost. Pre-payments for less than the remaining loan balance are not permitted.
Customers requesting a change of the company representative’s name on their OBF application prior to receiving the loan funds, will be required to complete an OBF Name Change Form.
Additionally, loan approval will be dependent on a new Touch Point Checklist to be completed by the new applicant. This is required to ensure the person signing for the loan is aware of the OBF terms and conditions.
- Applicants seeking to change an application in ways that impact energy savings, or bill neutrality, will be required to submit a new application. No amended applications will be accepted.
- An Authorized Customer representative (as specified in the OBF application) must sign a copy of the final energy efficiency project invoice. The signed final invoice will be used as the basis for evaluating project costs for the purposes of the final OBF loan amount calculation.
- Loan Proceeds will be issued to end-use customers unless the applicant designates Trade Professional1 as the Payee for loan proceeds in writing, at the time of OBF Loan Reservation Approval.
- No third-party financial institutions may receive loan proceeds check issuances from SCE unless they are designated as the Trade Professional by the customer and are compliant with SCE’s TradePro Participant guidelines.
Help Us Create a Clean Energy Future
Your energy-efficiency projects help us get closer to our goal
of a carbon-free future in California.
This program is funded by California utility customers and administered by Southern California Edison under the auspices of the California Public Utilities Commission. This program is offered on a first-approved, first-served basis and is effective until funding is expended or the program is discontinued by the California Public Utilities Commission. The website provides information for the customers’ convenience; however, the program terms and conditions are set forth in the On-Bill Financing application and in the event of a conflict between the Loan Agreement and this website, the terms of the Loan Agreement shall govern. This program may be modified or terminated without prior notice.
1Premise is defined as a building or a single location that provides a particular service or is used for a particular purpose.
2Bill neutrality, according to the CPUC’s May 18, 2012 decision guiding the 2013-2014 portfolio, refers to the situation in which the combined monthly or annual cost of energy efficiency loan repayments and the post-project utility bill do not exceed the amount of the original utility bill prior to the project being undertaken. See www.cpuc.ca.gov for more information.