Imagine somebody came to your house to audit energy consumption in your home and offered concrete ideas and suggestions to make improvements to lower your energy bills with upgrades that don’t require up front cash. Not only that, this quality service is guaranteed and comes to you at no cost. This is exactly what an Energy Alliance does. An energy alliance does not use taxpayer money but a revolving loan pool made up of private funds from which users can borrow without incurring monthly payments; savings from newly reduced energy bills then pay for the loans.

This movement was first started by a not-for-profit organization, the Cambridge Energy Alliance in Cambridge, Massachusetts and inspired many others around the country to follow suit. As a rapidly expanding grassroots organization it is not only a wonderful model for all communities to be proactive about saving energy but also an inspiration. It does not take much to form your own Energy Alliance. Gather motivated people in your community to build an alliance with experienced consultants who can provide hands-on guidance from start to finish. This is how the Cambridge Energy Alliance works:

CEA uses viral marketing strategies to reach every household and business in their community. Their consultants then go there to conduct an energy audit; they then make a cost analysis of potential upgrades to insulation, structure, appliances and mechanical and plumbing systems and calculate resulting energy savings. To evaluate the life-cycle cost of an upgrade against its initial cost, they calculate the time it would take to pay for each upgrade’s energy savings. After they have completed the life-cycle cost analysis, they suggest the most cost-effective upgrades.

After the complete evaluation, CEA arranges financing. Owners can pay for the upgrades themselves or choose from prearranged loan plans, including a low-interest loan for low-income residents and areas. Loan payments are structured with the goal that they not exceed the monthly utility savings, so the homeowner is redistributing funds rather than adding costs. When the loan is paid, the owner pockets the full monthly savings, about 15% to 30% of his old energy bills. CEA checks this database Database of State Incentives for Renewables & Efficiency to apply eligible rebates or incentives.

When the financial things are taken care of, the work can begin. CEA brings in the contractor, supervises the work, handles complaints and tracks the energy savings. CEA conducts engineering inspections of all large projects and sample small projects. Finally CEA collects and reports on the community’s collective energy savings.

Although this model works very well, your community’s need may be different and there is plenty of room to add, change and vary the way you can conduct these steps. In the end, forming your own Energy Alliance will not only empower you and your community, but save money and energy, creating a win-win and overall feel good situation for everybody.

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