FAQ Title Label
How is SBF different from On Bill Financing (OBF)?
FAQ Property Type
OBF is administered by the utility companies and the financing comes from ratepayer funds. SBF is administered by the State of California and the financing comes from private financing companies. Because financing through SBF is provided by private companies, customers will need to pay interest or financing charges in contrast to the 0% interest rate offered by OBF. However, the credit enhancement provided to finance companies through the program means that customers can expect more attractive rates and terms and broader approvals than they would find through private financing outside of the program. Additionally, because SBF is private financing, it is very flexible and can be used for projects that don’t qualify for OBF. SBF projects can range up to $5 million and have no payback period or bill neutrality requirements so measures like HVAC or windows can be financed. Almost any measure that saves energy will qualify through one of the program methods; measures are not limited to those that are part of utility programs. Additionally, some SBF finance companies will include financing for non-energy measures and some offer pre-funding for qualifying contractors. Customers can also choose from multiple financing products and receive fast approvals.