Energy Efficiency Financing for Public Sector Projects (California)

From Open Energy Information


Last modified on December 17, 2014.

Financial Incentive Program

Place California

Name Energy Efficiency Financing for Public Sector Projects
Incentive Type State Loan Program
Applicable Sector Schools, Local Government, Institutional
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, Photovoltaics, CHP/Cogeneration, Other Distributed Generation Technologies
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs

Maximum Incentive 3 million

Program Budget Over $20 million

Terms 0% - 1% interest rate

Loans must be repaid from energy cost savings within 15 years, including principal and interest

Program Administrator California Energy Commission

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Cities, counties, public care institutions, public hospitals, public schools and colleges, and special districts in California can apply for low-interest loans from the California Energy Commission for energy efficiency projects in their buildings and facilities. Residential and commercial projects and non-profit institutions are not eligible for these funds.

Entities eligible for 0% loans include:

  • School districts
  • Charter schools
  • County office of educations
  • State special schools
  • Community college districts

Entities eligible for 1% loans include:

  • Cities
  • Counties
  • Special Districts
  • Public College or University (except community colleges)
  • Public Care Institutions/ Public Hospitals

There is no minimum loan amount, but the maximum loan amount per application is $3 million. The loan term cannot exceed the useful life of loan-funded equipment, and will be determined on a case-by-case basis based on the estimated annual energy cost savings from the projects. The exact loan term will be determined such that the energy savings will cover the loan payments.

For a project to be considered, it must have proven energy savings and meet the eligibility requirements of the loan program. Examples of projects include:

  • Lighting systems
  • Pumps and motors
  • Streetlights and LED traffic signals
  • Energy management systems and equipment controls
  • Building insulation
  • Energy generation including renewable energy and combined heat and power projects
  • Heating, ventilation and air conditioning equipment
  • Waste water treatment equipment
  • Load shifting projects, including thermal energy storage

Full details and application packets are available at the web site above.

Incentive Contact

Contact Name Special Projects Office
Department California Energy Commission

Phone (916) 654-4104


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


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