Why would utility companies offer this kind of financing?

  • Utilities are entitled to a return on the investment of 8% or more if they provide the capital (at least in the case of regulated Investor Owned Utilities, e.g. Xcel & Centerpoint)

  • But also attractive to utilities for several reasons beyond getting paid for their investment:

    • lower peak demand;

    • higher customer satisfaction;

    • more flexibility to incorporate intermittent sources of energy