2025 State of Energy Payments Report

Mastering a Major Driver of Customer Satisfaction and Utility Perception

88% of consumers would be very satisfied with their utility if they had their choice of payout or disbursement. However, this critical piece of the customer experience is often overlooked. This report dives into consumer preferences and best practices from Utility leaders, to provide actionable insights to improve CSAT and the utility payment experience.

The flow of funds—and not just energy— between utility companies and their consumers is significant. Whether it’s a deposit return, Net Energy Metering payment, Demand Response incentive, or Energy Efficiency rebate—billions of dollars flow from utilities to consumers annually. And yet, many utilities are slow to modernize their payout and disbursement strategy —leading to consumer dissatisfaction and burden, and inefficient operations and cost structure.

Payments can no longer be viewed as mere point-to-point transactions. They are personal interactions that drive utility program engagement and customer satisfaction when done right—or harm them when done wrong. This report is based on insights from consumer surveys, interviews with utility leaders, and third-party data that map the current landscape of U.S. utility payments and disbursements. We identify critical factors of consumer preference and satisfaction, paired with best practices from industry experts.

Five Key Themes

Our research has identified five key themes that can guide utilities in optimizing payment systems for maximum benefit:

1. Payments Are Personal

Demographics and personal preferences influence desires for payout methods. To consistently satisfy customers, utilities must offer diverse options to meet these varied and often shifting needs. This report will highlight the impact that gender, generation, and income have on preference—and how there is no “one size fits all.”

2. Financial Inclusion

Financial inclusion is being redefined. 66.2% of consumers feel they live paycheck to paycheck1 , which means utility disbursements can represent a significant financial event for the majority of consumers. We discuss how financial inclusion stretches way beyond LMI and utility payouts can make—or break—the bank.

3. Speed and Efficiency

Since utility payments can have a material financial impact, a smooth process and fast delivery are important. Speed also helps customers link the reward to the benefit that spawned it—thus associating the utility with financial benefit. Our research shows this is one of the most important features of a disbursement program.

4. Visibility and Communication

Transparency in payment processes increases participation and trust. Through every step of the process, customers should know from whom the payment comes and why they are receiving it. Branding the entire experience reinforces the program and associates the utility with a positive experience.

5. Satisfaction and Engagement

Payments are powerful tools. Don’t squander them. Handled properly, they can directly improve customer satisfaction and engagement. In addition to providing data on customer needs and behaviors, this report will also provide actionable recommendations to help utility executives use their payment practices as opportunities to polish the brand, as well as increase customer engagement and satisfaction.

Choice Is the Clear Winner

Today, many utilities still rely on checks or bill credits to pay their customers, but research shows there is no longer a ‘one size fits all’ when it comes to meeting consumers’ payment preferences. Current best practices show that choice of payment is the clear winner—letting the consumers themselves select between physical and digital receipt, and multiple payout options.

“The flexibility to have different payment methods is critical. Having flexible payment choices is something that is valuable to the utilities and their customers.”

— Utility Program Implementor

A further look into the data shows that payment preferences can vary significantly based on generation, gender, and income. For instance, digital payouts resonate with younger, tech-savvy customers, while traditional methods like checks remain important for older consumers.

Since there is no single preferred payment method that satisfies a majority of consumers, utilities should offer multiple payment options in the form of choice. This choice improves experience and customer satisfaction.

Recommendations:

• Offer a choice of payment methods, including digital options, prepaid cards, and checks.

• Enable customers to switch payment methods at their choosing, at the time of payment issuance.

• Use customer data to ensure you are presenting the right payment options based on demographics, geography, etc.

• Regularly update options as customer habits and technologies evolve.

• With the right partner, offering payment choice is easier than offering checks or bill credits

“Ten years ago, a check or pre-paid gift card was great for most customers, but today with all the options that people know they have, having more ways to receive it, and being able to select which way they would like to be paid is a benefit to the program.”

— Utility Program Implementor

Inclusion Matters for All Your Customers

“More surprising is that the proportion of households appearing to live paycheck to paycheck falls only slowly as incomes rise. Around 20% of households with incomes above $150K also appear to be living paycheck to paycheck."

— Bank of America

Redefining Financial Inclusion

Financial inclusion extends beyond simply addressing the unbanked or LMI populations. The reality is that financial insecurity impacts the majority of U.S. households, and payment solutions must be designed with this broader context in mind. According to recent studies, 66.2% of households report feeling like they are living paycheck to paycheck. This financial strain underscores the critical need for systems that prioritize quick access to funds. By adopting systems that offer both fast payments and a variety of payment methods, organizations can:

• Enhance customer satisfaction.

• Reduce financial stress for vulnerable groups.

Financial Insecurity: A Costly Challenge

For many of these households, cash flow is not just a convenience—it is a necessity. Slow or encumbered payments exacerbate financial stress, forcing individuals to seek costly alternatives such as fee-based check-cashing services. Alarmingly, our research shows that 41% of respondents have reported paying fees to cash a check at least some of the time.

Check cashing fees erode the already limited financial resources of vulnerable households.

The Importance of Fast and Equitable Payment Methods

In today’s financial landscape, the importance of fast payments and flexible payment methods cannot be overstated. These features represent a cornerstone of customer-friendly practices, particularly for households navigating financial insecurity. By enabling recipients to choose how they receive funds, organizations can significantly enhance their customer relationships and address systemic financial challenges.

Fast Payments: A Customer-Friendly Solution

Fast payments—where funds are sent digitally, eliminating the delays of mailing—are a game-changer for financially insecure households. By reducing delays in payment processing, organizations can empower customers to manage their cash flow more effectively.

"I want the customer to be paid quickly, instead of six months later. Immediacy is important. Customers have told us, ‘I want to be paid for the actions I took.’"

— Utility Program Implementor

Choice in Payment Methods: A Key to Inclusion

While fast payments address the timeliness of fund access, offering recipients a choice in payment methods enhances the inclusivity of the process. Payment choice ensures that all individuals, regardless of their banking status or personal preferences, can receive funds in a way that suits their needs.

For instance:

• Prepaid Cards: Physical or digital, these cards provide universal access to funds.

• Digital Wallets Like PayPal/Venmo: A flexible option for tech-savvy customers and those without traditional bank accounts.

• Gift Cards: Great for lower values letting consumers directly access their favorite brands. Providing these options allows households to avoid costly intermediaries and ensures equitable access to payments.

Recommendations:

• Provide payment choice that allows recipients to select what works for them.

• Deliver payments quickly— grant access to funds to those who need it most.

• Prioritizing fast and flexible payment solutions is not just a matter of operational efficiency—it is a social responsibility.

Speed Reinforces Satisfaction

Customers value immediacy. It not only provides better financial inclusion, but behaviorally it increases the connection to the desired payment. A close link between action and reward increases program participation and enhances satisfaction, while delays in payment processing reduce the perceived value of incentives. 70% of survey respondents said the ability to get their payout fast was very important to their overall satisfaction.

Digital payments enable speed—cutting out time to receive and time to redeem. Speed should be balanced with customer experience—providing preferred payments, program branding, and overall visibility.

Balancing Speed and Preference

Although some utilities like bill credits for their operational simplicity, industry leaders and consumers alike recognize their drawbacks. Bill credits are invisible. Customers may notice a smaller bill in a particular month, but they don’t necessarily recall why, which means your incentive program gains neither sufficient credit nor credibility. This fluctuation in bills leads to increased customer support inquiries and customer frustration.

• 70% of consumers labeled getting payouts immediately as “very” or “extremely” important.

• 74% of consumers are more likely to participate in programs if their preferred payment is delivered quickly.

Including a reward as part of a bill takes what should be a positive experience—receiving funds—and mingles it with a negative one—paying a bill. It’s crucial to remember that choice is king. Consumers may have far greater use for cash, or they may just appreciate the simple dignity of determining how they receive their reward. To increase customer satisfaction and improve program engagement, you want customers to remember who provided the reward and why. The sooner they’re able to redeem the reward, the better their perception of you and your program.

Recommendations:

• Provide a program offer with incentive choice, advertised via branded email, and fulfilled with branded payment.

• Automate approval and payment workflows to provide near-instant payouts.

• Prioritize real-time payment options for small incentives.

• Regularly monitor and improve payment processing times based on customer feedback.

“I recommend incentives that are visible to the customer. On-bill credits don’t require the customer to do anything, but they’re very easily missed. They don’t notice how they’re directly benefiting from the program. They may be more likely to un-enroll or churn out. The most important thing is to make sure that customers can see the incentives they’re earning and to some extent choose how they want to redeem their incentives.”

— Utility Program Implementor

Show Your Work to Earn Customer Goodwill

“A company that communicates well is like that trusted friend. Predictable and consistent communication ensures customers know what to expect and reduces uncertainties. This improves the customer experience, fostering trust and loyalty.”

— Forbes

Transparency in how, when, and why payments are made builds trust and increases program participation. Clear communication is especially important for complex incentive structures.

A consistent payments strategy across your programs, with clear communication about payment type, value, and timing is key. Ensure clear program and company branding across all touchpoints to drive engagement, recall, and limit the calls (and frustrations) of “where’s my payment” and “what is this for?”

Clear communication, from program awareness to payment fulfillment, drives optimal performance. 74% of survey respondents said they would be more likely to participate in a program if they knew their desired payment type was available. Industry leaders market the program, incentive value, and payment choice—and reinforce that throughout the program.

Recommendations:

• Communicate the incentive in the marketing, and ensure your program is comprehensively branded throughout, including the payment.

• Provide clear communication of payment statuses through customer portals or mobile apps.

• Use plain language and multilingual support to explain payment processes.

• Actively update customers through email, SMS, or inapp notifications.

“In today’s fast-paced digital environment, customers expect transactions to be quick, reliable, and errorfree. A single misstep—such as overcharging, misapplied payments, or delays in processing refunds—can damage trust and leave a lasting negative impression.”

— Payments Journal

Payments Are Extremely Powerful

Payments are not just operational necessities. They are strategic tools that can help define the utility-customer relationship. By understanding what consumers want and embracing flexible, inclusive, and efficient payment systems, utilities can enhance participation, trust, and satisfaction while addressing all customer needs. When done with the right partner, better payments can improve internal operations, enhance reporting, and reduce overall cost.

Our research and conversations with industry leaders have shown the true impact a better payments approach can have across a utility and its customer base. As you think about your programs, remember a few key takeaways:

• Payments Are Personal: Each customer has their preference and utilities have the opportunity to meet that need.

• Speed Matters: Today’s consumers need cash in hand, quickly.

• Better Payments Deliver Better Results: A prompt, preferred payment improves engagement and program satisfaction.

• Improve Operational Efficiency: Legacy payment systems can drag down internal employees—from people who are cutting checks to customer support helping to figure out where a payment is. Digital payments can transform these operations.

• Improve Internal Visibility: Digital payments provide insight into recipient behavior, giving better reporting for auditors and regulatory bodies.

“Satisfaction with residential electric utilities has dropped, largely due to declining customer care. Positive customer care experiences boost overall satisfaction and drive advocacy, so utilities should prioritize making customers feel valued.”

— J.D. Power

Together, let’s modernize the entire utility experience—from program management to payments.

Choice Digital conducted an online consumer survey with 1,072 “heads of household” (primary decision makers over utility decisions) in the US in September 2024. In addition, 15 qualitative discussions were held with utilities and utility-sponsored program implementers to discuss top trends and best practices in October and November 2024.