This report provides an overview of credit enhancements available, such as loan loss reserves, loan guarantees, debt service reserve funds, and subordinated capital. It also discusses key issues related to credit enhancement, examples of how others have successfully implemented credit enhancements as part of their energy efficiency financing programs, and additional information on existing resources that provide further information on credit enhancement design and implementation.

This guide provides background on the home improvement market in the U.S. and Canada and end users and systems in existing homes, as well as a description of energy efficiency program approaches and strategies.