Web Content Viewer (JSR 286)

On-Bill Financing

Finance Your Energy Efficiency Upgrades with 0% Interest

On-Bill Financing (OBF) Overview

Want to upgrade your business equipment to be more energy efficient? If you qualify, we can help you finance eligible projects with our On-Bill Financing program. OBF allows you to:

  • Apply for a no-fee, interest-free loan
  • Pay back the loan through your SCE electric bill
  • Make payments based on estimated energy savings
  • Reduce energy usage

Watch the video to see how OBF can make a difference. Watching the video is a requirement for all OBF applicants.

How will OBF affect your bottom line?

When you upgrade your equipment, you may be able to lower your energy usage. If your project qualifies for OBF, your monthly payment is calculated to be approximately equal to your estimated monthly savings from replacing less efficient equipment with more efficient equipment. Please note that your electric bill may be affected by changes in usage, installation of additional equipment, or other factors.

OBF Fact Sheet >

The 6 Steps of the OBF Application Process

1 Submit Application

Customer/Trade Pro submits Incentive and OBF Applications

2 Get Approval

We review your loan application and, if approved, we reserved the OBF funds

3 Submit Project Report

Customer/Trade Pro installs project and submits report

4 Get Project Sign-Off

If everything is done correctly, we approve the installation and issue the rebate or incentive

Receive Loan

OBF loan funds are distributed

Begin Payments

Customer begins monthly repayments

If you are considering On-Bill Financing, carefully review all the program information below (including “New OBF Policy Changes effective September 1, 2017”) as there are changes designed to:

  • Assure alignment with similar programs offered by other California investor-owned utilities, as required by the California Public Utilities Commission (CPUC).
  • Promote cost-effective, comprehensive (multi-end use) projects.
  • Provide greater assurance that customers (borrowers) fully understand program obligations.

Apply for an OBF Loan

Our Online Application Tool allows you to submit your OBF application along with applications for several related incentive or rebate programs, including Express Solutions, Customized Solutions, Retro-Commissioning, or Midstream Point of Purchase for OBF (See “Who is Eligible?” below). The tool can save time and decrease the risk of your application being rejected or held for missing or incorrect information.

If you are unable to apply online, please email or call 1-800-736-4777. For a Third Party OBF Program Application, please contact your authorized Third Party Program implementer.

Apply Online

Applying for a Multifamily Energy Efficiency Rebate?

If you are applying to the Multifamily Energy Efficiency Rebate Program, please download an application and submit it by email to EMSApplication@sce.com.

Downloadable OBF Application >

More Information

New OBF Policy Changes effective September 1, 2017

SCE has modified the On-Bill Financing (OBF) program to include the following policy updates:

All commercial OBF loans will have a maximum loan term of five years regardless of the measures installed. This eliminates the previous 36-month cap for projects in which 90% or more of the total approved project incentive amount came from lighting measures. This change standardizes the maximum loan term for all commercial, industrial or agricultural customer regardless of the measures installed.

OBF will use the final approved energy savings for loan calculations regardless of loan reservation amount. This eliminates the Loan Reservation amount cap. If an installed project yields additional savings to those forecasted at the time of loan reservation, the OBF loan calculation will be adjusted to give the customer credit for the additional energy savings.

OBF business customers requesting a name change will be required to complete a new Touch Point Checklist answered by the new applicant. Any time a business customer requests a change of name on their OBF application, loan approval will be dependent of 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.

Who is Eligible?

All business customers are eligible (i.e., all Non-Residential Customers). To participate in On-Bill Financing, you must:

  • Apply for and receive approval for incentives under one or more of the following incentive/rebate programs:
    • Express Program (for projects not yet installed)
    • Customized Program
    • Retro-Commissioning Program
    • Third-Party Implementer Programs
    • Partnership Programs
    • Midstream Point Of Purchase Program (MPOP)
    • Multifamily Energy Efficiency Rebate Program
  • Have had an active SCE account in good standing for at least two consecutive years
  • Be in good credit standing with SCE, without:
    • A disconnection notice in the past [2 years] [throughout the account’s history]
    • A 48-hour shutoff notice in the past [2 years] [throughout the account’s history]
    • A returned check in the past 12 months
    • A deposit requirement to establish or re-establish credit in the past 12 months
    • No more than three (3) overdue past due notices (20 days late) in the past 12 months.
    • Previous OBF loan defaults


Please note, OBF loans are not transferable to anyone else. The loan will become due in full if you close your account, sell your business, or transfer ownership.

Relationship between Incentive and OBF Applications

  • Approval of a qualified incentive and/or rebate application is a condition of OBF participation and approval. OBF funding is available to fund the remaining cost of qualifying energy efficiency measures after applicable incentives and/or rebates have been paid.
  • The Maximum Loan Amount for a given project eligible for OBF is the Project Cost (as evidenced by a detailed invoice), less approved incentive and/or rebate amounts. The estimated energy savings provided by the customer in the project application will be used as the basis for the loan reservation calculation. The approved estimated energy savings will be used as the basis for the final loan calculation (for a more detailed explanation of how loan amounts are calculated, see “How are Loan Term and Approved Loan Amount Calculated”?)


What are Loan Funding Limits and Loan Terms?

Loan funding limits are set at the Service Account (SA) level. Customers with multiple SAs may have loans up to their SA cap with the exception of “Consolidated Loans”1.

Loan terms are 5 years for business customers and 10 years for public sector government and institutional customers. If the full Loan Amount cannot be repaid within the maximum Loan Term using the amount due each month based on estimated savings, the OBF loan amount will be adjusted to meet the program’s term caps per market segment.

The following table defines the loan funding limits and terms for different types of Non-Residential customer categories.

On-Bill Financing Loan Funding Limits and Terms
Customer Segment Individual SA Bundled SAs Consolidated SAs Loan Terms
Government & Institutional Min: $5,000
Max: $250,000
Min: $5,000
Max: $250,000
N/A Up to 10 years
Multifamily Min: $5,000
Max: $250,000
N/A Min: $5,000
Max: $250,000
Up to 10 years
Business Min: $5,000
Max: $100,000
N/A Min: $5,000
Max: $100,000
Up to 5 years

*OBF does not finance projects where single end use lighting measures comprise more than 20% of the total project costs. Emerging technologies will be exempt from the 20% project cap.

How are Loan Term and Approved Loan Amount Calculated?

The factors determining the term length of the OBF loan are:

  1. The maximum loan term cannot exceed the loan term limits presented above.
  2. The term cannot exceed the expected useful life (EUL) of the installed equipment.

The factors determining how the final approved loan amount is calculated are:

  1. Maximum Loan Amount – The maximum loan amount is the difference between the Project’s final qualifying Project Cost less the actual incentive received from SCE. The Maximum Loan Amount for any one service account cannot exceed the established loan amount limits set forth above.
  2. Estimated Bill Neutrality for Monthly Repayment Amount – The monthly loan repayment amount is calculated to be equal to the estimated monthly reduction in the customer’s utility bill as a result of the energy efficiency project.
  3. Loan Amount Limits - The loan amount for any one service account cannot exceed the established loan term limits presented above.


  • In no case will the eligible loan term be greater than that indicated by the Maximum Loan Amount divided by the bill neutrality calculation, or the loan term cap for each market segment.
  • In no case will the eligible loan amount be greater than that indicated by the Maximum Loan Amount, or the loan amount cap for each market segment.


Example #1. A business customer is seeking to install a non-lighting energy efficiency project that, meets the loan amount limits and term provisions of OBF :

Project Cost $60,000
Incentive $25,000
Maximum Loan Amount $35,000
Estimated Monthly Bill Savings $750*
Monthly OBF Loan Repayment $750 (Estimated Bill Neutrality)
Months to repay OBF Loan 47 months
Service Account Loan Limit $100,000
Measure Expected Useful Life 72 months

* Estimated 5,000 kWh/month times Customer’s average billing rate of $0.15/kWh.

This project would qualify for a $35,000 OBF loan, because:
1. The loan does not exceed the Service Account loan cap of $100,000;
2. The Expected Useful Life  of the project is greater than the loan term; and
3. The loan will  be repaid within the 5-year loan term limit for business customers.

Example #2. A business customer is seeking to install a project that does not fit within the Loan Amount and Loan Term provisions and therefore its OBF amount would be modified:

Project Cost $60,000
Incentive $25,000
Maximum Potential Loan $35,000
Estimated Monthly Bill Savings $525*
Monthly OBF Loan Repayment $525 (Estimated Bill Neutrality)
Months to repay OBF loan 67 months
Service Account Loan Limit $100,000
Measure Expected Useful Life 72 months

* Estimated 3,500 kWh/month times Customer’s average billing rate of $0.15/kWh.

This project would not qualify for a $35,000 OBF loan because:

  1. Although the loan is within the Service Account loan cap of $100,000; and
  2. The Expected Useful Life of the project is greater than the loan term;
  3. The loan cannot be repaid within the 5-year maximum loan term limit for business customers, and thus the OBF loan application would be modified by adjusting the loan amount to $31,500, so that the monthly payment of $525 will pay off the loan within 60 months.

Additional Application Submission and Program Requirements

  1. Applicants seeking to change an application in ways that impact energy savings, measure approach (i.e., deemed to calculated) or bill neutrality, will be required to submit a new application. No amended applications will be accepted.
  2. The CPUC has implemented significantly more stringent requirements to better assure quality installations of ratepayer-funded energy efficiency projects. These requirements are contained in the descriptions of incentive/rebate programs and include, but are not limited to:
    1. Applicant Certification that a licensed contractor is being used on a project installation, as required
    2. Applicant Certification that where a heating, ventilation, and air conditioning (HVAC) permit is required, the permit has been obtained. The Permit Number along with the relevant permitting agency must be included on the submitted Installation Report form.
    3. If a Contractor was used for any HVAC work, the Contractor must certify that they are:
      1. licensed,
      2. followed applicable permitting requirements, and
      3. providing correct permit information.
  3. An Authorized Customer representative (as specified in the original incentive/rebate and OBF application) must sign a copy of the final invoice. The signed final invoice will be used as the basis for evaluating project costs for the purposes of final OBF loan calculations.
  4. SCE reserves the right to request an executed contractor/customer installation agreement, inclusive of price quotations, for any project. The existence of and execution of this contractor/customer agreement is a requirement under the terms and conditions of all incentive/rebate and OBF programs. This agreement may be used as a basis for validating the final invoice.
  5. Although OBF are no-fee loans, if the applicant or the applicant’s customer authorized Trade Professional requests or requires a re-inspection of the project, SCE may charge a fee (ranging from $250 to $750) for such additional work. Any such fee may be deducted from OBF loan proceeds.
  6. Loan Proceeds will be issued to end-use customers in all cases, unless the applicant specifically designates the Trade Professional1  as the Payee. This designation must occur as follows:
    1. An authorized representative of the customer must clearly identify a third-party Trade Professional in the Incentive/Rebate and OBF Applications.
    2. The same authorized representative of the Customer must clearly designate the Trade Professional as the Payee for loan proceeds in the OBF Application
    3. Trade Professional must participate in an SCE hosted OBF Training to be eligible for OBF program participation.
  7. No third party financial institutions may directly 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.

1Trade Professionals must provide SCE with signed copies of SCE’s Trade Professional Agreement in order to receive incentive/rebate and/or OBF loan proceeds checks. Lack of compliance with the Trade Professional Program Guidelines may result in Trade Professional not being able to a) Receive incentive/rebate and/or OBF checks on behalf of customers, or b) continue participation in SCE Incentive/Rebate and OBF programs.


Business Customers

Commercial, Industrial and Agricultural customers.

Consolidated OBF Loan

When the OBF and loan consolidation requirements are met, the customer will have the choice to consolidate multiple Service Accounts (SA) into one or more consolidated OBF loan. This will minimize the number of OBF Loans.

For all loans the following will apply:

  • The loan limit caps outlined above will apply to consolidated OBF loans
    • A consolidated business loan will be capped at $100,000
    • A bundled government and institutional Loan will be capped at $250,000

In addition to the above for Businesses Customers the following applies:

  • For a consolidated loan, all applicable Service Accounts must be under the same Customer Account
  • All the SAs within a consolidated OBF loan must be at the same site (a building or a single location that provides a particular service or is used for a particular purpose).
  • Loan minimum is $5,000 per Service Account

If you are a Governmental and Institutional Customer the following conditions apply:

  • The SAs within a bundled OBF loan are not required to be the same site (a building or a single location that provides a particular service or is used for a particular purpose).
  • Loan minimum combined loan amount is $5,000

Expected Useful Life (EUL)

The average length of time the equipment may be operational, based on historical analysis. If there is more than one measure installed, the EUL of the equipment which contributes the greatest kWh savings for the project will be used.

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.

Web Content Viewer (JSR 286)