As noted throughout this paper, the SWH industry's most serious problem is complete lack of a sales force. The Insurance Agent Model represents the most likely viable initiative to create such a group of people. Currently, it is extremely unlikely that a profit-oriented entity will spend the cash needed to develop the model for SWH. Past failures with this industry and the lack of high growth margins would tend to lead investors to seek their fortunes elsewhere. Thus there is a public policy need to invest in this model. The investment could be rather modest, probably under $3 million.

Additional market research and business analysis could be undertaken to sharpen the design of the possible business models. Research into the appeal of the concept to potential entrepreneurs would be worthwhile. Exploration of potential related sales forces, perhaps including insurance agents themselves, may be warranted.

In developing the insurance agent model, a variety of organizations can play supporting roles:

• Federal Government
  • Promote value of Energy Star^TM Ally designation to homeowners
  • Require Fannie Mae, Freddie Mac, and FHA to offer convenient financing to meet their mission requirements
  • Provide collateral that contractors can customize to promote benefits of energy upgrades
  • Develop simple procedures to establish greenhouse gas reductions from home energy upgrades

• States
  • Direct market transformation money¹⁹ to venture development organizations that implement the insurance agent model
  • Provide advertising air time when agents are on the ground

• Local Governments
  • Provide information about SWH systems and dealers

• Utilities
  • Include SWH as recommended technology in consumer education materials
  • Use market transformation money to fund venture development organizations that implement the insurance agent model
  • For municipal utilities, finance SWH systems on monthly utility bills

• Environmental Groups
  • Promote benefits of SWH and solar systems
  • Co-market with SWH companies and sales forces

• Consumer Groups
  • Include SWH as reviewed and recommended technology for water heating
  • Educate consumers on life cycle costing and benefits of energy savings

• Banks, Finance Companies, and Mortgage Companies
  • Provide one-hour financing to SWH contractors based on online "credit scoring" systems
  • Provide lower-cost financing for SWH
  • Implement and aggressively promote energy-efficient mortgages

• Secondary Market Organizations
  • Develop guidelines for pooling energy-efficient mortgages and financing
  • Purchase commercial paper for SWH/bundled loans

• Builders Associations
  • Educate builders and consumers about benefits of SWH

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