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New York state senate introduces Pay-As-You-Save type scheme
The Pay As You Save (PAYS) concept that we at Construct Ireland have been promoting - the idea of providing up front financing for low energy refurbs and charging householders over time on their utility bills - has been gaining popularity, as I blogged about recently (here and here). Now the New York state senate has passed a law that will enable homeowners to avail of energy upgrade loans they can repay over time on their energy bills. It's a bit different to the PAYS concept we're promoting, which would involve a repayment tariff attached to a household bill rather than a loan attached to an individual bill-payer. But the general idea is the same.
Richard Defendorf writes on GreenBuildingAdvisor.com:
The Green Jobs initiative, which is designed to provide upfront financing for energy-efficiency retrofits to both homeowners and businesses, is similar to programs already offered by other jurisdictions, including municipalities in California, Colorado, and Virginia, and the city of Babylon, New York, on Long Island. Even in the U.K., the city of London is trying to address the energy inefficiencies in its aging housing stock by offering homeowners subsidies for weatherization improvements.
The initiative will be financed through the sale of carbon emission credits under a local cap-and-trade initiative for power plants
Defendorf explained how the programme will work:
The loans will be administered by the New York State Energy Research and Development Authority, which focuses primarily on the reduction of petroleum consumption but also on research into the environmental effects of energy consumption, the development of renewable resources, and other technology innovations. The loan limit for each residential customer is $13,000, and $26,000 for each business. Loan costs will be added to participants’ monthly energy bills, although the energy savings from each retrofit – which should reduce usage by 30% to 40% – is expected to be larger than the loan payment