Energy Efficiency Financing Program (California)

From Open Energy Information


Last modified on May 24, 2011.

Financial Incentive Program

Place California

Name Energy Efficiency Financing Program
Incentive Type State Loan Program
Applicable Sector Schools, Local Government, Public Hospitals
Eligible Technologies Lighting, Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Heat pumps, Central Air conditioners, Energy Mgmt. Systems/Building Controls, Building Insulation, Motors, Custom/Others pending approval, CHP/Cogeneration, Other Distributed Generation Technologies
Active Incentive No
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
Amount Up to 100% of energy efficiency project costs

Maximum Incentive 3 million

Program Budget $45 million total;
$25 million for 1% loans, $20 million for 3% loans

Terms 1.00% or 3.00% fixed APR, depending on the project's ability to meet certain federal guidelines;

Maximum loan term of 15 years.

Program Administrator California Energy Commission

References DSIRE[1]


The California Energy Commission (CEC) provides loans to Cities, Counties, public schools, public hospitals, and special districts to finance energy-saving projects. Originally established with $20 million in funding, California more than doubled the loan fund using money made available through the federal American Recovery and Reinvestment Act (ARRA). Public projects funded with money from ARRA must meet certain requirements which may be difficult for certain projects to meet. To add flexibility, the CEC developed two separate loan funds. $25 million in ARRA funds support a loan program with a 1.00% interest rate. Projects unable to meet the ARRA requirements can use the original $20 million in state funds, which support a separate loan program with a 3.00% interest rate.

Interest rates are fixed for the term of the loan. The maximum loan amount is $3 million and there is no minimum loan. Loans must be paid back within 15 years from energy costs savings, or in 2 years for energy audits. Common projects include lighting and equipment upgrades and heating systems, but can also include other energy-saving measures and renewable energy systems.

Application packets are available on the program website above.

Incentive Contact

Contact Name Public Programs Office
Department California Energy Commission
Address 1516 Ninth Street, MS #42
Place Sacramento, California
Zip/Postal Code 95814-5512
Phone (916) 654-4104


  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"