• Establish a statewide requirement for utilities to offer Inclusive Utility Investment (IUI) programs, also known as tariffed on-bill financing, as a core financing mechanism for energy upgrades in residential or small commercial buildings.
• IUI programs enable customers to receive efficiency, weatherization, Distributed Energy Resources (DERs), or electrification upgrades at no upfront cost, with repayment tied to the utility meter rather than the individual customer. The investment is recovered through a fixed charge on the bill that is less than the energy savings from the upgrade, creating immediate bill relief for customers. Because IUI is not a personal loan, IUI programs would enable widespread access to efficiency and electrification upgrades regardless of credit score, ownership status, or income.

High upfront costs remain one of the largest barriers to upgrades in residential and commercial buildings. IUI programs removes that barrier by offering an accessible financing mechanism that delivers immediate net bill savings. Because they are not based on incentives or rebates for individual projects, IUI programs can be implemented with minimal or no public funding to create the kind of market-based upgrades approach that is needed to jumpstart building decarbonization.

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IUI programs must be designed to protect and benefit low- and middle-income households, businesses, and renters. Programs should:

• Prioritize no-cost or deeply subsidized upgrades for income-qualified households before offering financed options.
• Require bill neutrality (i.e., the monthly savings from the upgrade exceed the monthly repayment) to prevent increased energy burden.
• Safeguard customers by prohibiting shutoffs connected to IUI repayments.
• Be transparent, with clear terms and consumer-friendly outreach.
• Protect renters from rent increases due to upgrades.
• Engage community organizations to support outreach and enrollment.

2027: ‍

• The Washington State Legislature enacts a statewide requirement for utilities to launch in-house IUI programs or partner with qualified implementers, such as Community Development Financial Institutions or Washington Builds.
• The Department of Commerce and Utilities and Transportation Commission (UTC) issue guidance on program design, consumer protections, contractor requirements, return on equity for Investor Owned Utilities (IOUs), and coordination with weatherization and incentive programs.

2028:

• Utilities determine eligible measures, customer eligibility, and strategies to engage contractors and customers.

2029 and beyond:

• Utilities deploy IUI programs statewide.
• Commerce and the UTC monitor performance, adjust requirements as needed, and gather and share best practices.