Energy / Climate Change
May 24, 2005
Bank to Support Leasing of Energy-Saving Products to Households
Keywords: Climate Change Energy Conservation Government Non-manufacturing industry Policy / Systems
The Development Bank of Japan (DBJ), a government-affiliated financial institution, will launch a new loan program in April 2005 to facilitate the leasing to households of energy-saving products, such as home appliances, water heaters and vehicles. Through this program, in an effort to help combat global warming, the DBJ aims to support new mechanisms that promote energy-saving products.
Through tie-ups with power companies, major electronics retailers and others, the DBJ will provide low-interest loans to applicants who purchase energy-efficient products in bulk and lease them to households at low cost. To implement the program, the DBJ receives an interest-rate subsidy from the Ministry of Economy, Trade, and Industry. As one example, the DBJ will facilitate the leasing of home appliances, which are energy-efficient but sometimes less popular because of their relatively high prices. In the bank's plans to promote these products, leasing systems are simplified so that households can use them more conveniently. For example, to facilitate billing and payment, power companies will simply add the monthly leasing charges to the customer's electricity bill.
In the case of refrigerators and air conditioners, customers choose the latest energy-saving models in order to close a leasing contract. These models enable customers to save 1,000 to 2,000 yen (about U.S.$10 to 20) a month on electricity bills compared to older models, because energy efficiency of these appliances has improved in the past decade. In effect, customers are able to use new models but pay the same or a slightly lower total amount on the electricity bill than before, even with the lease payments included in the bill.
With the aim of expanding the use of energy-efficient products, the DBJ plans to advertise the program not only to electric power companies but also to other energy service providers, including gas companies, manufacturers of energy-saving products, and leasing companies.
Posted: 2005/05/24 10:21:14 AM
Japanese version
Through tie-ups with power companies, major electronics retailers and others, the DBJ will provide low-interest loans to applicants who purchase energy-efficient products in bulk and lease them to households at low cost. To implement the program, the DBJ receives an interest-rate subsidy from the Ministry of Economy, Trade, and Industry. As one example, the DBJ will facilitate the leasing of home appliances, which are energy-efficient but sometimes less popular because of their relatively high prices. In the bank's plans to promote these products, leasing systems are simplified so that households can use them more conveniently. For example, to facilitate billing and payment, power companies will simply add the monthly leasing charges to the customer's electricity bill.
In the case of refrigerators and air conditioners, customers choose the latest energy-saving models in order to close a leasing contract. These models enable customers to save 1,000 to 2,000 yen (about U.S.$10 to 20) a month on electricity bills compared to older models, because energy efficiency of these appliances has improved in the past decade. In effect, customers are able to use new models but pay the same or a slightly lower total amount on the electricity bill than before, even with the lease payments included in the bill.
With the aim of expanding the use of energy-efficient products, the DBJ plans to advertise the program not only to electric power companies but also to other energy service providers, including gas companies, manufacturers of energy-saving products, and leasing companies.
Posted: 2005/05/24 10:21:14 AM
Japanese version
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