On-Bill Financing

Utility On-Bill Recovery Loan Program

PSEG LI customers on Long Island and in the Rockaways (as well as other utility customers throughout New York State) can take advantage of On-Bill Recovery financing administered through the New York State Energy Research and Development Authority (NYSERDA). The program is for energy efficiency measures for residential, small businesses (under 100 employees) and not-for-profits.

What is the On-Bill Recovery Loan Program?

The On-Bill Recovery Loan Program is specifically designed to finance energy efficiency improvements (including geothermal HVAC) through NYSERDA and to repay the funds through a monthly charge on your electric utility bill. Your repayment amount is based on projected savings on your energy bills. The On-Bill Recovery Loan Program makes it easy to pay for a new geothermal system without paying all the costs up front.

Benefits of On-Bill Recovery Financing Program

  • Convenient – no separate bill to pay
  • Repay from the money you save on energy
  • Transferable if you sell your property

Highlights of On-Bill Recovery Loan Financing:

  • Loan amounts range from $3,000 up to $25,000 for residential and up to $50,000 for small businesses and not for profits
  • Terms of 5, 10, or 15 years
  • Low interest rate of just 2.99% (subject to change)
  • Interest may be tax deductible
  • Hassle-free monthly loan payments included on your existing electric utility bill
  • Finance up to 100% of the installation cost of energy efficiency measures


To be eligible for this program, you must first participate in the In-Home Energy Assessment Program. It starts with a FREE or low cost BPI-accredited Comprehensive Home Assessment (CHA) that leads to recommendations on energy-efficiency improvements. The installation of a geothermal heating and cooling system must have a savings to investment ratio of at least 1.0 to be included in the plan. To learn more, visit the PSEG LI residential efficiency webpage: https://www.psegliny.com/page.cfm/Efficiency/HomeEfficiency.


To be eligible for this program, you must first have a utility-approved Energy Assessment of your facility performed. The assessment will list all recommended energy efficiency measures and their associated payback. PSEG LI offers free energy assessments for all their commercial customers. Call -800-692-2626 to set up your assessment and be sure you state you would like an analysis of a geothermal system to replace your existing heating and air conditioning equipment.

For more information and program details visit NYSERDA’s On-Bill Recovery Loan program webpage details: http://www.nyserda.ny.gov/Statewide-Initiatives/On-Bill-Recovery-Financing-Program.aspx.