This document summarizes an energy efficiency program between Origin Energy and Low Carbon Australia that provides on-bill financing for commercial and industrial customers to implement energy efficiency projects. The program offers end-to-end project support including audits, financing from Low Carbon Australia, repayment through utility bills, and guaranteed energy savings. It aims to make energy efficiency investments more accessible and reduce risks for customers. Initial results found that on-bill financing with guaranteed savings addressed key barriers to energy efficiency adoption.

1. Energy ProviderͲDelivered
Energy Efficiency
A global stockͲtaking
based on case studies
Grayson C. Heffner, International Energy Agency
Peter du Pont, Greg Rybka, Carina Paton, and Lynn Roy, Nexant, Inc.
Dilip Limaye, SRC Global Incorporated
© OECD/IEA 2012
The views expressed in this IEA Insights Paper do not necessarily reflect the views or policy of the International Energy Agency (IEA)
Secretariat or of its individual member countries. This paper is a work in progress and/or is produced in parallel with or
contributing to other IEA work or formal publication; comments are welcome, directed to Grayson.heffner@iea.org.
© OECD/IEA, 2013

2. © OECD/IEA 2013 Energy ProviderͲDelivered Energy Efficiency
A global stockͲtaking based on case studies
Origin Energy
Table 36 • Energy Savings Guarantee Programme
Page | 107
City, country, region Australia
Programme type Advice and assistance, onͲbill financing
Program tenure Ongoing since 2011
Sector focus Commercial and industrial, public sector.
Technology focus All
Encourage business investment in energy efficiency and clean technology,
while contributing to Origin Energy’s energy efficiency obligation.
Budget AUD 12.7 million (2011Ͳ2013)
Investment cost of <USD 23/tCO2e
Savings Annual savings:
Contact information Daniel Trujillo (Origin Energy): Tel. +61 3 9821 8028,
Daniel.trujillo@originenergy.com.au
Paul Greenop(LCAL): Tel. +61 7 3188 1643,
Paul.Greenop@lowcarbonaustralia.com.au.
Reference http://www.lowcarbonaustralia.com.au/media/13545/origin_factsheet.pdf
Summary and background
Origin Energy and Low Carbon Australia (LCAL) established a strategic alliance to make it easier
and more cost effective for businesses across Australia to finance and implement their EE
projects. Origin provides an endͲtoͲend service, adding value to their business customers and
improving their ability to acquire new customers and retain old ones. LCAL provides the financial
support and repayment model while Origin is a strong brand partner with good access to
business customers as well as markets and distribution channels.
The Energy Savings Guarantee (ESG) programme features onͲbill financing. Origin structures the
terms so that payment are offset by energy savings, thus providing energy bill stability and
eliminating the need for businesses to raise the upfront capital for energy efficiency investments.
Programme description
The strategic alliance between Origin and LCAL provides accessible project financing to Origin’s
business customers. The programme provides endͲtoͲend project support, including energy
audits and project identification, structured repayment terms offset by energy savings, provision
of project financing from LCAL and repayment through the Origin Energy’s billing system, and
provision of expertise and support needed to deliver the project.

3. Energy ProviderͲDelivered Energy Efficiency © OECD/IEA 2013
A global stockͲtaking based on case studies
Origin applies a simple 5Ͳstep delivery process: 1) assess a candidate organization’s objectives
and suitability; 2) perform onͲsite assessments; 3) provide detailed energy savings reports,
quantifying costs and savings in kWh and CO2; 4) implement energy saving measures which can
be guaranteed within ±20%; and 5) deliver a complete M&V report to verify the savings.
LCAL provides a credit line to Origin to onͲlend to businesses, adding its own EE experience and
Page | 108 expertise. Meanwhile, Origin offers business customers a full service model for delivering EE
solutions, with endͲtoͲend project management, zero upfront cost, and an energy savings
guarantee. This means the monthly cost to business customers is offset by energy savings, with
no net increase in their energy bill and no risk to the business customer. In some cases,
customers achieve a cost reduction in their energy bill even while repaying the loan from LCAL.
This programme is marketed to Origin’s existing and prospective commercial and industrial
customers with a minimum annual energy consumption of 160 MWh.
Regulatory and market drivers
Given the introduction of a price on carbon in Australia, and existing state and federal reporting
schemes, EE has become a near necessity for a business’s economic viability. Other regulatory
drivers include the Energy Savings Opportunities Programme managed by Department of
Resources, Energy and Tourism (DRET) and the state energy efficiency obligations schemes in
New South Wales, Victoria, and South Australia.
Energy savings from the ESG can be accredited for sale in the Energy Savings Certificates (ESC)
market. Origin Energy and LCAL support participating customers to generate ESCs for projects
delivered but the participating customer, not Origin Energy, owns these ESCs. Depending on the
circumstances and the project, Origin Energy might buy the ESCs generated from the
participating customer, but this is a separate transaction from the project itself. In other cases
the ESCs are left with the participating customer to trade directly with market intermediaries.
Lessons learned
x Customer decisionͲmaking can be very timeͲconsuming. Decisions often require multiple
decisionͲmakers to buy in to the project. Even with an internal champion, competing
priorities within the business and unclear mandates may delay or even halt a project.
x EE must constantly compete with other priorities for budget and management attention.
Customer education is needed to emphasize the value of EE, especially given increasing
energy costs and regulations. Targeted marketing campaigns regarding EE finance options
and other government incentives have strengthened the overall Origin value proposition.
x The Energy Saving Guarantee is very attractive to customers that have deferred EE projects
due to lack of funding or lack of expertise to deliver. Customers with the capacity and
capability to implement projects themselves may prefer to selfͲfund activities.
x The EE industry is burgeoning in Australia, but there is sometimes spotty product quality
and expertise. In response Origin has built a network of trusted, experienced partners and
suppliers in the most common EE areas.