Among the many key priorities utility agencies are balancing (grid modernization, expanding renewable energy sources, and managing rate structures, to name a few) improving digital self-service tools for customers is a critical area of focus. One of the most impactful and accessible ways to do this is by promoting online payment options and paperless utility bills.

While the concept isn’t new, the urgency and benefits of going paperless have never been clearer — especially for enterprise utility agencies looking to reduce costs, improve customer satisfaction, and future-proof their operations.

Why Promote Paperless Utility Bills?

The shift toward going 100% paperless is no longer theoretical. From the federal government’s move to digital disbursements to the growing consumer demand for seamless online experiences, the world is going paperless and utilities must keep pace.

Yet, many utility agencies still rely on outdated, paper-based billing processes that are costly, inefficient, and increasingly out of step with customer expectations.

Here are a few of the most impactful benefits utility agencies stand to gain from actively encouraging customers to embrace paperless billing.

1. Significant Cost Savings

One of the most compelling reasons to go paperless is the potential for dramatic cost reductions.

Printing and mailing paper bills can cost utilities between $6 to $9 per customer annually. For a utility with 750,000 customers, even a modest increase in postage or paper costs could mean hundreds of thousands of dollars in additional expenses each year.

By driving paperless adoption, utilities can redirect these funds toward infrastructure improvements, customer service enhancements, or other mission-critical initiatives.

Truckee Meadows Water Authority (TMWA), a not-for-profit, community-owned water utility, was struggling to stabilize rates and improve internal operations with manual, time-consuming payments. These outdated systems created additional workloads for TMWA’s employees and a frustrating experience for its 135,000 customers.

Watch the video below to see how Truckee Meadows saved $160,000 through its successful paperless billing initiative.

2. Meaningful Productivity Increase

Manual billing processes are time-consuming and labor-intensive. From printing and stuffing envelopes to processing paper checks, these tasks drain valuable staff time. By automating billing and payments, utilities can free up customer service representatives (CSRs) to focus on higher-value work and community engagement.

For instance, Sacramento Suburban Water District saved 32 hours per month in manual payment processing — time that was reinvested into meaningful projects.

3. Fewer Disconnects and Reconnects

Whether it’s mail delays or lost checks to blame, relying on physical bills and check payments can lead to delinquencies, customer confusion, and spikes in disconnects.

Paperless billing enables real-time delivery and payment, reducing the risk of delinquency and improving revenue flow. On average, InvoiceCloud customers see a 40% reduction in late payments, including San Jose Water who reported a 35% decrease in late payments after its first year working with InvoiceCloud.

4. Environmental Impact and Sustainability

It’s easy to say you’re an environmentally conscious organization. It’s much more difficult to prove this sentiment.

By focusing initiatives on increasing paperless billing, utility agencies can walk the walk by reducing the production of paper bills contributing to deforestation and waste.

Between April 2024 and April 2025 alone, InvoiceCloud customers saved significant resources, just by increasing their paperless billing enrollment:

• 22,653 trees
• 3.5 million pounds of CO₂
• 66 million gallons of water

This data shows the real impact of a focused effort towards driving paperless billing, and it’s a powerful message to environmentally conscious customers and stakeholders.

Encouraging Paperless Billing Enrollment

Reaching 100% digital billing and payments is every biller’s ideal state. Reducing (or, ideally, eliminating) paper-based processes means time and money saved, peace of mind for billers, and convenience for customer.

Download the free ebook, “Preparing Utilities for a Paperless Future,” to evaluate if your agency can accommodate a surge of paperless billing and payment adoption with your current system.