Utility companies may soon provide loans for energy upgrades

Utility companies are looking at offering their customers loans for energy efficiency upgrades and renewable energy systems that would be paid back through their monthly utility bills.

KTOO-FM reported last week that the lending system called "on-bill financing" exists in other parts of the country.

Customers will be able to request loans for a range of upgrades including solar panels, higher efficiency appliances and switches in heating fuel systems.

A bill signed last month by Gov. Bill Walker gives utility companies the power to suspend service to a customer if they fail to pay back their loan.

Cory Borgeson, president and CEO of the Golden Valley Electric Association in Fairbanks, says the company needs to set up a bank business before it can implement the loan program.