| Resource Type | Webinar |
| Author / Source | Co-op Innovation Network (CIN) |
| Publication Date | November 2025 |
| Location | Kansas and Colorado; framework applicable nationally |
| Initiative Type | Program, Policy, Partnership |
| Project Complexity | Intermediate |
| Recommended For | Board, Staff |
Estimated viewing time: 30 minutes
Why This Matters for Rural Electric Co-ops
Upfront cost is the single largest barrier to energy efficiency and electrification adoption in rural communities, and on-bill financing gives co-ops a proven tool to remove it without taking on traditional consumer lending complexity.
Programs like Midwest Energy's House Smart and Tri-State's Electrify and Save show that on-bill structures can become self-sustaining, deepen member relationships, reduce arrears, and accelerate beneficial electrification. For co-op leaders weighing how to fund member-side investments at scale, this webinar offers two mature implementation models that can be adapted to their service territory.
Key Takeaways
| › | Pay-as-you-save structures require monthly charges to stay below estimated bill savings, which protects members from net cost increases and is central to program credibility and uptake. |
| › | Initial capitalization can come from a mix of sources (USDA REDLG, state energy offices, Tri-State's USDA RUS grant), but mature programs like House Smart become self-funded as repayments revolve into new projects. |
| › | Property transfer mechanisms matter: Midwest files a UCC-1 and Colorado's program files a land records notice so the obligation transfers cleanly with the property, but enabling state legislation may be required first. |
| › | Contractor networks drive program scale and quality. Midwest reports contractors generate roughly 70% of program promotion, while CCEF maintains strict licensing and performance standards across 200+ contractors. |
Implementation Considerations
- Cost or Funding Requirements: Initial capital of several million dollars is typical to launch. Smaller co-ops may need partnerships with a G&T, statewide association, or state clean energy finance authority.
- Regulatory or Governance Considerations: Co-ops may need state-level statutory changes to authorize on-bill financing. Midwest spent two years securing Kansas legislation.
Notable Examples
- Midwest Energy (Kansas): House Smart program has completed nearly 3,000 projects totaling $16.8M since 2008, with 4.85/5 member satisfaction.
- Collective Clean Energy Fund (Colorado): Administers Electrify and Save, manages 200+ contractor network, services loans internally.
- Tri-State Generation and Transmission: Sponsors Electrify and Save across seven participating Colorado co-ops covering ~114,000 meters, funded by $50M USDA RESP grant.
Estimated viewing time: 30 minutes
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